On january 2, year 1, polk borrowed $60,000 and used the proceeds to purchase 90% of the outstanding common shares of strass. this debt is payable in ten equal annual principal payments, plus interest, beginning december 30, year 1. the excess cost of the investment over strass' book value of acquired net assets should be allocated 60% to inventory and 40% to goodwill. on january 1, year 1, the fair value of strass shares held by noncontrolling parties was $10,000. stockholders' equity including noncontrolling interests should be $ 80,000 $ 85,000 $ 90,000 $130,000 $90,000. in the consolidated balance sheet, neither the parent company's investment account nor the subsidiary's stockholders' equity is reported. these amounts are eliminated in the same journal entry that records the excess of cost over book value. the portion of the subsidiary's stockholders' equity that is not eliminated is reported as noncontrolling interest in the equity section of the consolidated balance sheet. therefore, the parent's stockholders' equity ($90,000) equals the consolidated stockholders' equity plus the minority interest. g