Reference no: EM132779324

Pax Company acquired 80% of the outstanding voting stock of Sax Company on January 2, 20x1, for $190,000. Balance sheets for Pax and Sax Companies immediately after the stock acquisitions were as follows:

                                                               Pax Company           Sax Company
Current assets                              $110,000                        $ 60,000
Investment in Sax Company                190,000                           -0-
Property, plant, & equipment                  350,000                     140,000
Patents and copyrights                         25,000                         70,000
Total assets                                     $675,000                    $270,000

Current liabilities                                   $ 68,000                  $ 30,000
Bonds payable                                       -0-                         20,000
Common stock                                     300,000                       100,000
Other contributed capital                         140,000                        40,000
Retained earnings                                    167,000                          80,000
Total liab. & stockholders' equity                   $675,000                   $270,000

Problem 1: On the consolidated balance sheet, what amount will appear for noncontrolling interest?

a.$38,000
b.$47,500
c.$33,500
d.$44,000