Mock exam, morning session, question 46 question, thousands, understand, 200

JonnyKay

Hi guys,

Does someone agree with the answer? I don't understand why the total shareholder's equity after the acquisition is not just the equity before the acquisition and the minority interest.
Why do they add 67,200 to the capital stock ? Also the units don't seem to match when they add 67,200 + 280,000 as the first number is in thousands and the second on is in millions.

economicz

i disagree with the answer b/c 'minority interest' is not supposed to be reported as part of the equity on the consolidated statement. it should go in 'mezzanine' section. anyone else tried this question ??