Business, 16.03.2020 20:04 tiakimberly3

Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20x5, at underlying book value of $98,000. At the date, fair value of the noncontrolling interest was equal to 30 percent of the book value of Screen Corporation. Screen's balance sheet on January 1, 20x8, contained the following balances.

Cash 50,000
Accounts Receivable 35,000
Inventory 40,000
Building/Equipment 300,000
Less:Accumulated Depreciation (100,000)
Total Assets 325,000
Accounts Payable 40,000
Bonds Payable 100,000
Common Stock 50,000
Additional Paid-In Capital 75,000
Retained Earnings 60,000
Total Liabilities and Equities 325,000

On January 1, 20x8, Screen acquired 5,000 of its own $2 par value common shares from Nonaffiliated Corporation for $6 per share.

1. Based on the preceding information, what is the increase in the book value of the equity attributable to the parent as a result of the repurchase of shares by Screen Corporation?

2. Based on the preceding information, what will the journal entry to be recorded on Play Company's books to recognize the change in the book value of the shares it holds?

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Play Company acquired 70 percent of Screen Corporation's shares on December 31, 20x5, at underlying...

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