Poole Made the Following Purchases of Smarte Company Common Stock

Essay

Poole made the following purchases of Smarte Company common stock: Stockholders' equity information for Smarte Company for 2016 and 2017 follows: On July 1, 2017, 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, 2016. 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, 2017.
B. Prepare the workpaper eliminating entries needed for a consolidated statements workpaper on December 31, 2017.
C. Compute the amount of noncontrolling interest that would be reported on the consolidated balance sheet on December 31, 2017.