Response to the following problem:
Pillow Company is purchasing an 80% interest in the common stock of Sleep Company.
Sleep's balance sheet amounts at book and fair value are as follows:
|
Account
|
Book Value
|
Fair Value
|
|
Current assets
|
$ 200,000
|
$ 250,000
|
|
Fixed assets
|
350,000
|
800,000
|
|
Liabilities
|
(200,000)
|
(200,000)
|
What will be the amount of the noncontrolling interest in the consolidated balance sheet, and how will it be displayed in the consolidated balance sheet?