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Big Justine Corporation owns 80% of the stock of Little Bill, Inc. At December 31, 2012, Little...

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Big Justine Corporation owns 80% of the stock of Little Bill, Inc. At December 31, 2012, Little Bill had the following summarized balance sheet: You must show your work.

LITTLE BILL, INC. Balance Sheet December 31, 2012
Current assets $90,000 Current liabilities $50,000
Long-term debt 150,000
Property, plant, and equipment (net) 400,000 Capital stock 40,000
490,000 Retained earnings 250,000
490,000

What would Big Justine report as the amount of noncontrolling interest on their balance sheet?

In what section of the balance sheet (Assets, Liabilities or Equity) does GAAP require Big Justine's noncontrolling interest in Little Bill be reported?

Investment in Subsidiary

Investment in a subsidiary arises when a company acquires another company with an ownership interest of 51% or more. There must be control. This is accounted for by using the acquisition method.

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What is an Investment? - Definition & Overview

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