Pro Corporation purchased 9,000 shares of Schroeder Corporation on January 1, 20X3, at book value....
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Accounting
Pro Corporation purchased 9,000 shares of Schroeder Corporation on January 1, 20X3, at book value. At that date, the fair value of the noncontrolling interest was equal to 52.6 percent of Schroeder's book value. On December 31, 20X8, Schroeder reported these balance sheet amounts:
Assets
Liabilities and Equities
Cash
$ 86,000
Accounts Payable
$ 47,000
Accounts Receivable
121,000
Bonds Payable
150,000
Inventory
200,000
Common Stock
190,000
Buildings and Equipment
610,000
Additional Paid-In Capital
50,000
Less: Accumulated Depreciation
(210,000)
Retained Earnings
370,000
Total Assets
$ 807,000
Total Liabilities and Equities
$ 807,000
On January 1, 20X9, Schroeder issued an additional 5,000 shares of its $10 par value common stock to Nonaffiliated Company for $90 per share.
Required:
Compute the change in book value of the shares held by Pro as a result of Schroeders issuance of additional shares.
Prepare the entry to be recorded on Pros books to recognize the change in book value of the shares it holds, assuming the change in book value is to be treated as an adjustment to additional paid-in capital.
Record the consolidation entry needed to prepare a cons
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