Practice Quiz

CPA Accountant Review Questions

Category - Accounting

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If Big Bertha’s Birds purchases a family owned canary breeding farm for $150,000 and the family retained 12.21%, what is the minority interest that is put on the balance sheet?
  1. $21,581
  2. $18,315
  3. $150,000
  4. $131,685
  5. $12,210
Explanation
Answer: B - The minority interest on the balance sheet is $18,315, based on the simple calculation of 1221 x 150,000.

Key Takeaway: Minority interest refers to ownership of a company that is less than 50% and is usually expressed in a percentage.
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