busterbluth

epoh Wrote:
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> shouldn't
>
> Assets = 1000+ .6(500)=1300
> Lia= 700+350*.6=910
> Equity = 300+.6*150=390


no.

its full consolidation so

assets = 1000 + 500 = 1500
lia = 700 + 350 = 1050
equity is old equity + (MI% * MI) + equity issued to buy company if company was purchased with stock

kickthatcfa

Equity method will lead to the most favorable ratios for the most part - so when in doubt, answer equity method

giants2010

austinCFA Wrote:
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> just to confirm, the equity is high because of the
> "minority interests", correct?
> stockholder equity (common stock) and retained
> earnings will be the same in all three methods
> (equity, aquisition, prop. consolidation).


correct.

Sportsman

Assuming they bought it at book value:

A = 1000 + 500 - (150*.6) = 1410

L = 700 + 350 = 1050

E = 300 + (150*.4) = 360

NO EXCUSES

SeanWest

just to confirm, the equity is high because of the "minority interests", correct?
stockholder equity (common stock) and retained earnings will be the same in all three methods (equity, aquisition, prop. consolidation).