Essay
Poole made the following purchases of Smarte Company common stock: 
On July 1, 2014, Poole sold 14,000 shares of Smarte Company common stock on the open market for $22 per share.The shares sold were purchased on January 1, 2013.Smarte notified Poole that its net income for the first six months was $70,000.Any difference between cost and book value relates to subsidiary land.Poole uses the cost method to account for its investment in Smarte Company.
Required:
A.Prepare the journal entry made by Poole to record the sale of the 14,000 shares on July 1, 2014.
B.Prepare the workpaper eliminating entries needed for a consolidated statements workpaper on December 31, 2014.
C.Compute the amount of noncontrolling interest that would be reported on the consolidated balance sheet on December 31, 2014.
Correct Answer:
Verified
Correct Answer:
Verified
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