Power Company owns 90 percent of Pleasantdale Dairy’s stock. The balance sheets of the two companies immediately after the Pleasantdale acquisition showed the following amounts:

Power
Company

Pleasantdale Dairy

  Assets

  Cash & Receivables

$

140,000  

$

77,000  

  Inventory

 215,000  

97,000  

  Land

89,000  

54,000  

  Buildings & Equipment (net)

402,000  

240,000  

  Investment in Pleasantdale Stock

261,900  

  Total Assets

$

1,107,900  

$

468,000  

  Liabilities & Stockholders’ Equity

  Current Payables

$

60,000  

$

22,000  

  Long-Term Liabilities

259,900  

175,000  

  Common Stock

399,000  

69,000  

  Retained Earnings

389,000  

202,000  

  Total Liabilities & Stockholders’ Equity

$

1,107,900  

$

468,000  

The fair value of the noncontrolling interest at the date of acquisition was determined to be $29,100. The full amount of the increase over book value is assigned to land held by Pleasantdale. At the date of acquisition, Pleasantdale owed Power $12,000 plus $900 accrued interest. Pleasantdale had recorded the accrued interest, but Power had not.