Determine the value assigned to the non-controlling interest as of the date of the acquisition. ,

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On January 1, 2010, Glenville Co. acquired an 80% interest in

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The Question

On January 1, 2010, Glenville Co. acquired an 80% interest in Acron Corp. for $500,000. There is no active trading market for Acron’s stock. The fair value of Acron’s net assets was $600,000 and Glenville accounts for its interest using the acquisition method.,

  1. Determine the amount of goodwill to be recognized in this acquisition. ,

  2. Determine the value assigned to the noncontrolling interest as of the date of the acquisition. ,