Calculation of the cumulative translation adjustment and the allocation of such between controlling and noncontrolling interests. Prospect International, a U.S. company, acquired an 80% controlling...

Calculation of the cumulative translation adjustment and the allocation of such between controlling and noncontrolling interests. Prospect International, a U.S. company, acquired an 80% controlling interest in the equity of a foreign corporation, Aspic Developments. At the time of the acquisition, January 1, 2014, Prospect paid 880,000 foreign currency (FC) for its interest, which was considerably more than the proportionate amount of book value equity of the subsidiary.

The parent’s cost in excess of Aspic’s book value was to be allocated as follows: