Corvallis Corporation owns 80% of the stock of Little Harrisburg, Inc. At December 31, 2010, Little Harrisburg had the following summarized balance sheet:
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LITTLE HARRISBURG, INC. |
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Current assets |
$100,000 |
Current liabilities |
$50,000 |
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Long term debt |
150,000 |
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Property, plant, and equipment (net) |
400,000 |
Capital stock |
50,000 |
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$500,000 |
Retained earnings |
250,000 |
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$500,000 |
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The earnings of Little Harrisburg, Inc., for 2010 were $50,000 after tax.
Required
a. What would be the amount of noncontrolling interest on the balance sheet of Corvallis Corporation? How should noncontrolling interest be classified for financial statement analysis purposes?
b. What would be the noncontrolling interest in share of earnings on the income statement of Corvallis Corporation?