On January 1, 20X1, Alpha Company acquired 75

1On January 1, 20X1, Alpha Company acquired 75 percent of Beta Corporation’s common stockfor $307,500 in cash. At the acquisition date, the book values and fair values of Beta’s assets andliabilities were equal, and the fair value of the noncontrolling interest was equal to 25 percent ofthe total book value of Beta. The stockholders’ equity accounts of the two companies at theacquisition date are: Noncontrolling interest was assigned income of $15,000 in Alpha’s consolidated incomestatement for 20X9.Based on the preceding information, what amount will be assigned to the noncontrolling intereston January 1, 20X1, in the consolidated balance sheet?A. $86,000B. $44,000C. $102,500D. $50,000 2Apple Company acquired 80 percent of Banana Company’s outstanding common stock for$240,000 on January 1, 20×7, when the book value of Banana’s net assets was equal to$300,000.Apple uses the equity method to account for investments. Trial balance data for Apple andBanana as of January 1, 2007, are as follows: Required:A. Prepare the journal entry on Apple’s books for the acquisition of Banana on January 1,20×7.B. Prepare a consolidation worksheet on the acquisition date, January 1, 20×7, in good form.C. Prepare a consolidated balance sheet on the acquisition date, January 1, 20×7, in goodform. 3Sam Co acquired 70 percent of Rice Co’s outstanding common stock for $259,000 on January 1,20×8, when the book value of Rice’s net assets was equal to $370,000. Sam uses the equitymethod to account for investments. Trial balance data for Sam and Rice as of December 31,2008, are as follows: Required:A. Prepare any equity method entry(ies) related to the investment in Rice Co during 20×8.B. Prepare a consolidation worksheet for 20×8 in good form.