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Ans C) allocated between the noncontrolling interest share and the parent's share.
On consolidated working papers, a subsidiary's net income is allocated between the noncontrolling interest share and the parent's share.
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33. On consolidated working papers, a subsidiary's net income is A) deducted from beginning consolidated retained...
Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and ...
Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary’s Stockholders’ Equity on the acquisition date. The parent assigned the excess to the following [A] assets: [A] Asset Initial Fair Value Useful Life (years) [A] Asset Initial Fair Value Useful Life...
In a consolidated worksheet, we sometimes need to adjust the beginning balance of the parent company's...
In a consolidated worksheet, we sometimes need to adjust the beginning balance of the parent company's retained earnings. Our textbook refers to this adjustment as *C. Which of the following statements about entry *C is false. Assume that both the parent and the subsidiary are profitable. a. If the parent company apples the equity method on its own books, then entry *C is not necessary. b. If the parent company applies the initial value method on its own books, then...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $300,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
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...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's con...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018 2017 (850,000 600,000 90,000 Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets Accounts...
Bolero Company holds 70 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible b...
Bolero Company holds 70 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: $ 2017 (905,000) 611,000 101,000 0 Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a paren...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following [A] assets [A] Asset Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
Upstream versus downstream inventory profits and net income attributable to the noncontrolling interest Assume that on...
Upstream versus downstream inventory profits and net income attributable to the noncontrolling interest Assume that on January 1, 2012, a parent company acquired a 90% interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled their reported book values. There were no intercompany sales during 2012. During the year ended December 31, 2013, the companies made $300,000 of intercompany sales. All intercompany sales include profits of 30% of selling...
17. A parent company consolidates its 80%-owned subsidiary. It is now December 31, 2021. The following...
17. A parent company consolidates its 80%-owned subsidiary. It is now December 31, 2021. The following information is available: • The subsidiary's reported net income for 2021 is $30,000. • The subsidiary sells merchandise to the parent at a markup of 15% on cost. The parent's 2021 ending inventory balance contains $1,725 in merchandise purchased from the subsidiary. The parent's 2021 beginning inventory contains $2,300 in merchandise purchased from the subsidiary. Total sales price of merchandise transferred between the subsidiary...
P3-8 Based on AICPA] Prepare journal entries to account for interest, consolidated retained earnings, and investment...
P3-8 Based on AICPA] Prepare journal entries to account for interest, consolidated retained earnings, and investment balances On January 1, 2016, Pop Corporation made the following investments: 1. Acquired for cash, 80 perce nt of the outstanding common stock of Son Corporation at $280 per share. The stockholders' equity of Son on January I,2016, consisted of the following: Common stock, par value $100 Retained earnings $200,000 80,000 2. Acquired for cash, 70 percent of the outstanding common stock of Sam...
In a consolidated worksheet, we sometimes need to adjust the beginning balance of the parent company's retained earnings. Our textbook refers to this adjustment as *C. Which of the following statements about entry *C is false. Assume that both the parent and the subsidiary are profitable. a. If the parent company apples the equity method on its own books, then entry *C is not necessary. b. If the parent company applies the initial value method on its own books, then...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $300,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
Bolero Company holds 80 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018 2017 (850,000 600,000 90,000 Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total assets Accounts...
Bolero Company holds 70 percent of the common stock of Rivera, Inc., and 30 percent of this subsidiary's convertible bonds. The following consolidated financial statements are for 2017 and 2018: $ 2017 (905,000) 611,000 101,000 0 Revenues Cost of goods sold Depreciation and amortization Gain on sale of building Interest expense Consolidated net income to noncontrolling interest to parent company Retained earnings, 1/1 Net income Dividends declared Retained earnings, 12/31 Cash Accounts receivable Inventory Buildings and equipment (net) Databases Total...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following [A] assets [A] Asset Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
Upstream versus downstream inventory profits and net income attributable to the noncontrolling interest Assume that on January 1, 2012, a parent company acquired a 90% interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled their reported book values. There were no intercompany sales during 2012. During the year ended December 31, 2013, the companies made $300,000 of intercompany sales. All intercompany sales include profits of 30% of selling...
17. A parent company consolidates its 80%-owned subsidiary. It is now December 31, 2021. The following information is available: • The subsidiary's reported net income for 2021 is $30,000. • The subsidiary sells merchandise to the parent at a markup of 15% on cost. The parent's 2021 ending inventory balance contains $1,725 in merchandise purchased from the subsidiary. The parent's 2021 beginning inventory contains $2,300 in merchandise purchased from the subsidiary. Total sales price of merchandise transferred between the subsidiary...
P3-8 Based on AICPA] Prepare journal entries to account for interest, consolidated retained earnings, and investment balances On January 1, 2016, Pop Corporation made the following investments: 1. Acquired for cash, 80 perce nt of the outstanding common stock of Son Corporation at $280 per share. The stockholders' equity of Son on January I,2016, consisted of the following: Common stock, par value $100 Retained earnings $200,000 80,000 2. Acquired for cash, 70 percent of the outstanding common stock of Sam...
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