Reference no: EM132744930

JENNIE Company acquired 80% of the outstanding shares of MINNIE Company for $800,000 on January 1, 2019. On this date, MINNIE reports capital stock of $300,000, Share Premium of $350,000 and Retained Earnings of P200,000.

• Moreover, an examination of MINNIE's net assets revealed that their book values were equal to their fair values except for Inventory which was understated by $50,000, Equipment with a 5-year remaining life was overstated by $75,000, Building with a 10-year life was understated by $100,000 and Land was understated by $20,000.
• The non-controlling interest is stated at fair value. JENNIE Company pays $20,000 direct acquisition costs related to the acquisition and $15,000 indirect costs. $5,000 direct costs and $20,000 indirect costs however, remain unpaid.
• If JENNIE and MINNIE Company are not small-medium enterprises and MINNIE Company reports Stockholders Equity of $1,200,000 on December 31, 2022.

Problem 1: Determine the Non-Controlling Interest on December 31, 2022.

a) 234,000
b) 264,000
c) 183,000
d) 270,000