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Question 5 [25 marks] a) On January 1, 2015 Philips Corporation purchased 60% (15,000 shares)...

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Question 5 [25 marks] a) On January 1, 2015 Philips Corporation purchased 60% (15,000 shares) of Henry Corporation for $300,000. The stockholders' equity section of Henry Corporation (Henry Inc.) was as follows: Henry Inc $250,000 175,000 75,000 $500,000 Common stock $10 par value Additional paid in capital Retained earnings Total stockholders' equity Henry Inc. Retained earnings at subsequent year ends were as follows Henry Inc. $115,000 $165,000 $200,000 Retained earnings December 31, 2015 Retained earnings December 31, 2016 Retained earnings December 31, 2017 Henry Inc. issued 15,000 additional shares of common stock directly to Philips Corporation on January 1, 2018 at $35 per share Required: Compute the balance in Philip's Investment in Henry account on January 1. 2018 after its purchase of the additional shares. [7 marks] Compute the value of the NCI the would appear on the consolidated balance sheet as at January 1, 2018 [3 marks]

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