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EOCQ Reading 21 #26

HELP!
Why does it use 1,750 as the denominator (equity value) when calculating debt-to-equity under the consolidation method? Shouldn’t it be 2,010?
Thanks!

You don’t combine equity–only A & L.
Minority interest is calculated as acquiree’s equity x minority interest %, and this is the only isntance it is considered.

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ok, so just NinMount’s Equity + purchase price for Boswell’s net assets?

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of course…that would be double counting. got it.

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