A parent owns less than 100% of the voting stock of its subsidiary. On its consolidated...
A parent owns less than 100% of the voting stock of its subsidiary. On its consolidated income statement, the earnings per share number is calculated using which of the following amounts in the numerator?
|
A. |
Consolidated net income less consolidated dividends | |
|
B. |
Consolidated net income |
|
|
C. |
Consolidated net income plus noncontrolling interest in net income |
|
|
D. |
Consolidated net income less noncontrolling interest in net income |
Homework Answers
answer is option d) Consolidated net income less noncontrolling interest in net income
we have to exclude net income related to noncontrolling interest for computing earning per share.
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A parent owns less than 100% of the voting stock of its
subsidiary. On its consolidated...
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr)...
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr) Current assets $ 4,000 Property, net 95,000 Intangible assets, net 15,000 Goodwill 100,000 Liabilities (180,140) Capital stock (10,000) Retained earnings, beginning (16,000) Accumulated other comprehensive income, beginning (500) Noncontrolling interest (2,000) Dividends 500 Sales revenue (390,000) Cost of sales and operating expenses 385,000 Other comprehensive income (1,000) Noncontrolling interest in net income 150 Noncontrolling interest in other comprehensive loss (10) Total $ 0 On...
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr)...
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr) Current assets $ 4,000 Property, net 95,000 Intangible assets, net 15,000 Goodwill 100,000 Liabilities (180,140) Capital stock (10,000) Retained earnings, beginning (16,000) Accumulated other comprehensive income, beginning (500) Noncontrolling interest (2,000) Dividends 500 Sales revenue (390,000) Cost of sales and operating expenses 385,000 Other comprehensive income (1,000) Noncontrolling interest in net income 150 Noncontrolling interest in other comprehensive loss (10) Total $ 0 The...
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr)...
Provided are the consolidated trial balances of a parent and its less-than-wholly-owned subsidiary. Account Dr (Cr) Current assets $ 4,000 Property, net 95,000 Intangible assets, net 15,000 Goodwill 100,000 Liabilities (180,140) Capital stock (10,000) Retained earnings, beginning (16,000) Accumulated other comprehensive income, beginning (500) Noncontrolling interest (2,000) Dividends 500 Sales revenue (390,000) Cost of sales and operating expenses 385,000 Other comprehensive income (1,000) Noncontrolling interest in net income 150 Noncontrolling interest in other comprehensive loss (10) Total $ 0 On...
Assume that a parent company owns 75 percent of its subsidiary. On January 1, 2016, the...
Assume that a parent company owns 75 percent of its subsidiary. On January 1, 2016, the parent company had a $100,000 (face value) 8 percent bond payable outstanding with a carrying value of $94,000. Several years ago, the bond was originally issued to an unaffiliated company for 92% of par value. On January 1, 2016, the subsidiary acquired the bond for $91,000. During 2016, the parent company reported $400,000 of (pre-consolidation) income from its own operations (prior to any equity...
Below is the equity section of the consolidated worksheet between a parent and its subsidiary Subsidiary...
Below is the equity section of the consolidated worksheet between a parent and its subsidiary Subsidiary Parent Accounts Payable 1,083 890 Long-term Debt 2,013 1,262 Common Stock 3,356 1,759 Retained Earnings 5,467 4,677 Here is the separate income and dividends paid during the year Separate Net Income Dividends Declared Parent 9,434 2,201 Subsidiary 2,520 850 After the consolidation entry is prepared the consolidated net income will be $
Below is the equity section of the consolidated worksheet between a parent...
Below is the equity section of the consolidated worksheet between a parent and its subsidiary Parent...
Below is the equity section of the consolidated worksheet between a parent and its subsidiary Parent Subsidiary Accounts Payable 1,584 668 Long-term Debt 3,264 1,314 Common Stock 4,285 1,695 Retained Earnings 6,621 4,619 Here is the separate income and dividends paid during the year Separate Net Income Dividends Declared Parent 7,836 2,467 Subsidiary 2,118 881 When the consolidation entry is prepared the debit to Retained Earnings will be $____
Parent Co paid $176,000 for 80% of the outstanding voting stock of Sub Co on January...
Parent Co paid $176,000 for 80% of the outstanding voting stock
of Sub Co on January 1, 2018, when Sub Co’s stockholders’ equity
consisted of $120,000 common stock and $60,000 retained earnings.
This implied that the total fair value of Sub co is $220,000
($176,000 / 80%). The company assigned the $40,000 excess fair
value to previously unrecorded patents with a 10-year useful
life.
Parent Co’s $36,800 income from Sub Co for 2018 consisted of 80%
of Sub Co’s $50,000...
A Parent Company owns 100% of its Subsidiary. During 2013, the Parent company reports net income...
A Parent Company owns 100% of its Subsidiary. During 2013, the Parent company reports net income of $1,000,000 and the subsidiary reports net income of $400,000. The Parent had a bond payable outstanding on July 1, 2012, with a carry value equal to $840,000. The Subsidiary acquired the bond on July 1, 2012 for $790,000. During 2013, the Parent reported interest expense (related to the bond) of $70,000 while the Subsidiary reported interest income (related to the bond) of $64,000....
If the parent company owns more than 50% of the subsidiary’s voting stock, and effectively has...
If the parent company owns more than 50% of the subsidiary’s voting stock, and effectively has control of the subsidiary, consolidated financial statements are: Multiple Choice not possible. required. required only by the SEC. optional.
A parent acquired 90% of the voting stock of a subsidiary for $20,000. The fair value...
A parent acquired 90% of the voting stock of a subsidiary for $20,000. The fair value of the noncontrolling interest was $2,000. The subsidiary's book value at the date of acquisition was $1,000. Following is revaluation information for the subsidiary's identifiable net assets at the date of acquisition: Fair Value – Book Value Inventories $ (400) Equipment (10,000) Identifiable intangibles 16,000 What is the amount of consolidated goodwill attributed to the noncontrolling interest at the date of acquisition, following U.S....
Below is the equity section of the consolidated worksheet between a parent and its subsidiary Subsidiary Parent Accounts Payable 1,083 890 Long-term Debt 2,013 1,262 Common Stock 3,356 1,759 Retained Earnings 5,467 4,677 Here is the separate income and dividends paid during the year Separate Net Income Dividends Declared Parent 9,434 2,201 Subsidiary 2,520 850 After the consolidation entry is prepared the consolidated net income will be $
Below is the equity section of the consolidated worksheet between a parent...
Parent Co paid $176,000 for 80% of the outstanding voting stock
of Sub Co on January 1, 2018, when Sub Co’s stockholders’ equity
consisted of $120,000 common stock and $60,000 retained earnings.
This implied that the total fair value of Sub co is $220,000
($176,000 / 80%). The company assigned the $40,000 excess fair
value to previously unrecorded patents with a 10-year useful
life.
Parent Co’s $36,800 income from Sub Co for 2018 consisted of 80%
of Sub Co’s $50,000...
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