How is non-controlling interest solved for in this problem?
On January 1, 20X1, Wayne Corp. purchased 70% of Payne Corp.'s $10 par common stock for $900,000. On this date, the carrying amount of Payne's net assets was $1,000,000. The fair values of Payne's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net), which were $200,000 in excess of the carrying amount. For the year ended December 31, 20X1, Payne had net income of $150,000 and paid cash dividends totaling $90,000. Excess attributable to plant assets is amortized over 10 years.
In the December 31, 20X1, consolidated balance sheet, noncontrolling interest should be reported at _______.
a. $282,500 b. $300,500 c. $318,000 d. $345,000
This problem is solved by taking the fair value of NCI and adding share of net income, less share of dividends. Now, I can easily solve for the share of net income and the share of dividends. Does anyone know how to figure for the fair value of NCI?