Answer:
The amount of non-controlling interest reported should be $251,000
Explanation:
Non-controlling interest = $239,000
Net income = $190,000
Cash dividends = $125,000
Amortization of increase in plant = $100,000 ÷ 20 years = $5,000
Value of Shaw's Corporation on January 1, 20X8 = $956,000 + $239,000
= $ 1,195,000
Value of Shaw's Corporation on December 31, 20X8 = Value of Shaw's Corporation on January 1, 20X8 + Net income - Cash dividends - Amortization of increase in plant
= $ 1,195,000 + $190,000 - $125,000 - $5,000
= $1,255,000
Minority interest = 20% × $1,255,000
= $251,000
