On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration
On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000. Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr's total fair value and its underlying book value. The subsidiary reported net income of $70,000 in 2017 and $90,000 in 2018 with dividend declarations of $30,000 each year. Apart from its investment in Starr, Harrison had net income of $220,000 in 2017 and $260,000 in 2018.
a. What is the consolidated net income in each of these two years?
b. What is the balance of the noncontrolling interest in Starr at December 31, 2018?
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On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration
On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000...
On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000. Harrison computed annual excess fair- value amortization of $8,000 based on the difference between Starr's total fair value and its underlying book value. The subsidiary reported net income of $70,000 in 2017 and $90,000 in 2018 with dividend declarations of $30,000 each year. Apart from its investment in Starr, Harrison had...
On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000...
On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000. Harrison computed annual excess fair-value amortization of $8,000 based on the difference between Starr’s total fair value and its underlying book value. The subsidiary reported net income of $70,000 in 2017 and $90,000 in 2018 with dividend declarations of $30,000 each year. Apart from its investment in Starr, Harrison had net...
ProForm acquired 80 percent of ClipRite on June 30, 2017, for $800,000 in cash. Based on...
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recognized in the acquisition. The noncontrolling interest fair
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financial statements are as follows:
ProForm sold ClipRite
inventory costing $81,000 during the last six months of 2017 for
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On January 1, 2017, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $945,000 The 10 percent noncontrolling interest had an assessed fair value of $105,000 on that date. Any acquisition-date excess fair value over book value was attributed to an unrecorded customer list developed by Yarrow with a emaining life of 15 years. On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $544,000. At the acquisition date, the 20 percent noncontrolling interest...
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On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $767,200 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $328,800 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $138,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is...
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Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1,...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $428,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $585,000 and the fair value of the 20 percent noncontrolling interest was $107,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two...
On January 1, 2017, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000. Harrison computed annual excess fair- value amortization of $8,000 based on the difference between Starr's total fair value and its underlying book value. The subsidiary reported net income of $70,000 in 2017 and $90,000 in 2018 with dividend declarations of $30,000 each year. Apart from its investment in Starr, Harrison had...
ProForm acquired 80 percent of ClipRite on June 30, 2017, for
$800,000 in cash. Based on ClipRite's acquisition-date fair value,
an unrecorded intangible of $500,000 was recognized and is being
amortized at the rate of $17,000 per year. No goodwill was
recognized in the acquisition. The noncontrolling interest fair
value was assessed at $200,000 at the acquisition date. The 2018
financial statements are as follows:
ProForm sold ClipRite
inventory costing $81,000 during the last six months of 2017 for
$210,000....
On January 1, 2017, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $945,000 The 10 percent noncontrolling interest had an assessed fair value of $105,000 on that date. Any acquisition-date excess fair value over book value was attributed to an unrecorded customer list developed by Yarrow with a emaining life of 15 years. On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $544,000. At the acquisition date, the 20 percent noncontrolling interest...
On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $767,200 in cash and equity securities. The remaining 30 percent of Atlanta's shares traded closely near an average price that totaled $328,800 both before and after Truman's acquisition. In reviewing its acquisition, Truman assigned a $138,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is...
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $476,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $705,000 and the fair value of the 20 percent noncontrolling interest was $119,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two...
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