[ormella]

On January 1, 2005, Tern purchased 90% of Costal Corporation’s outstanding shares for $1,400,000 when the fair value of Costal’s assets were equal to the book values. The balance sheets of Tern and Costal Corporations at year-end 2004 are summarized as follows:
Tern
Assets $ 5,900,000
Liabilities $ 700,000
Capital stock 3,600,000
Retained earnings 1,600,000

If a consolidated balance sheet was prepared immediately after the business combination, the minority interest, would be how much?

[rehmanvohra]

I think your question is incomplete:

1. You have given the purchase price of Costal's shares, but what is the fair value of its net assets at the date of acquisition, how was the price settled?

2. The balance sheet given does not agree. You must give separate amounts for each company.

3. You MUST also show your attempt, we will definitely try and help you out.