Master Eerperatien Item Debit Credit Cash Er Receivables $ ELGDD inventery EEili] Land SUEDE] Buildings Sr Equipment Sili] inyeslrnent in Stanley...

P5-39  Comprehensive Problem: Majority-Owned Subsidiary

Master Corporation acquired 80 percent ownership of Stanley Wood Products Company on January 1, 20X1, for $160,000. On that date, the fair value of the noncontrolling interest was $40,000, and Stanley reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Master has used the equity method in accounting for its investment in Stanley.