Homework Answers
Answer:-
Computing controlling interest and non controlling interest:-
Controlling Interest:-
Retained earnings + Capital stock
300000 + 350000 = 650000
Fair value = 600000*80% = 480000
Fair value of patent = 650000-480000 = 170000
P income= 200000
S income = 100000
Less patent = 17000
Consolidated income = 283000
Controlling income = 200000 + 66400
= 266400
Non controlling income = 83000*20%
= 16600
Add Answer to:
EXERCISE 5-5 T-Account Calculation of Controlling and Noncontrolling Interest in Consolidated Net Income LO 4 On...
Exercise 5-5 On January 1, 2014, P Company purchased an 80% interest in s Company for...
Exercise 5-5 On January 1, 2014, P Company purchased an 80% interest in s Company for $590,400, at which time S Company had retained earnings of $310,800 and common stock of $344,300. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that P and S Companies reported net incomes from their independent operations of $195,800 and $100,300, respectively. Calculate the controlling...
Calculate controlling interest share and noncontrolling interest share of consolidated net income Pet Company owns 90 p...
Calculate controlling interest share and noncontrolling interest share of consolidated net income Pet Company owns 90 percent of the stock of Man Corporation and 70 percent of the stock of Nun Company. Man owns 70 percent of the stock of Oak Corporation and 10 percent of the stock of Nun Company. Nun Company owns 20 percent of the stock of Oak Corporation Separate incomes for the year ended December 31, 2016, are as follows: $130,000 $ 36,000 $ 56,000 18,000...
Calculating net income, noncontrolling interest share, and controlling interest share with unrealized profits The affil...
Calculating net income, noncontrolling interest share, and controlling interest share with unrealized profits The affiliation structure for Parang Corporation and Subsidiaries is as follows: Parang 80% Sangkur 60% Keris The investments were acquired at fair value equal to book value in 2016. Parang's ending balance of inventories in 2016 includes unrealized profits of $15,000 from Sangkur. Keris's land account includes unrealized profits of $10,000 from Sangkur. Separate incomes (not including investment income) for all companies for 2016 are: Parang Sangkur...
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...
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...
The noncontrolling interest in subsidiary income and total non controlling interest On January 1, Beckman, Inc.,...
The noncontrolling interest in subsidiary income and total non controlling interest On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $51,612. Calvin Co. has one recorded asset, a specialized production machine with a book value of $19,200 and no liabilities. The fair value of the machine is $75,700, and the remaining useful life is estimated to be 10 years. Any remaining excess fair value is attributable to an unrecorded process trade secret with an...
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...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $460,000 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 $300,000 and to an unrecorded Customer List valued at $160,000. The building...
P7-24 Computation of Consolidated Net Income LO 7-3, 7-4 Package Corporation acquired 90 percent ownership of...
P7-24 Computation of Consolidated Net Income LO 7-3, 7-4 Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1, 20X4, for $122,400 when the fair value of Sack's net assets was $20,000 higher than its $116,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $13,600. During 20X4, Sack sold land to Package at a...
Question 2Partially correctMark 5.00 out of 15.00 Not flaggedFlag question Question text Preparing a consolidated income...
Question 2Partially correctMark 5.00 out of 15.00 Not flaggedFlag question Question text Preparing a consolidated income statement—Equity 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 $350,000 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...
Exercise 5-5 On January 1, 2014, P Company purchased an 80% interest in s Company for $590,400, at which time S Company had retained earnings of $310,800 and common stock of $344,300. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that P and S Companies reported net incomes from their independent operations of $195,800 and $100,300, respectively. Calculate the controlling...
Calculate controlling interest share and noncontrolling interest share of consolidated net income Pet Company owns 90 percent of the stock of Man Corporation and 70 percent of the stock of Nun Company. Man owns 70 percent of the stock of Oak Corporation and 10 percent of the stock of Nun Company. Nun Company owns 20 percent of the stock of Oak Corporation Separate incomes for the year ended December 31, 2016, are as follows: $130,000 $ 36,000 $ 56,000 18,000...
Calculating net income, noncontrolling interest share, and controlling interest share with unrealized profits The affiliation structure for Parang Corporation and Subsidiaries is as follows: Parang 80% Sangkur 60% Keris The investments were acquired at fair value equal to book value in 2016. Parang's ending balance of inventories in 2016 includes unrealized profits of $15,000 from Sangkur. Keris's land account includes unrealized profits of $10,000 from Sangkur. Separate incomes (not including investment income) for all companies for 2016 are: Parang Sangkur...
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...
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...
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...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $460,000 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 $300,000 and to an unrecorded Customer List valued at $160,000. The building...
P7-24 Computation of Consolidated Net Income LO 7-3, 7-4 Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1, 20X4, for $122,400 when the fair value of Sack's net assets was $20,000 higher than its $116,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $13,600. During 20X4, Sack sold land to Package at a...
Most questions answered within 3 hours.
-
A machine shop owner wishes to assign each of three machinists
(labeled 1, 2, and 3)...
asked 10 minutes ago -
Regarding language development, which of the following
statements is FALSE?
Babies are able to cry from...
asked 9 minutes ago -
A couple of small ice cubes at 0 °C are added to glass of warm
water...
asked 8 minutes ago -
Slow 'n Steady, Inc., has a stock price of $30, will pay a
dividend next year...
asked 11 minutes ago -
During the current financial year, the owner of Omega
Enterprises withdrew supplies of $2,000 for personal...
asked 7 minutes ago -
PLEASE SHOW MATH CALCULATION(formulas)it has to be done on excel
P12-4 Last year (2016), Richter Condos...
asked 16 minutes ago -
A 0.25μF capacitor is charged to 50 V . It is then connected in
series with...
asked 32 minutes ago -
Calculate the current, I, through the batteries for:
- a 2-bulb parallel circuit
- How does...
asked 33 minutes ago -
Choose the sentence that uses correct punctuation.
1a. The prefatory parts of a report include the...
asked 39 minutes ago -
For the element arsenic, which one of the following sets of
quantum numbers could not apply...
asked 49 minutes ago -
Compare and contrast the architectures of 3 types of ADCs:
Flash, SAR, and pipelined. Use the...
asked 50 minutes ago -
Given P(A) = 0.40, P(B) = 0.50, P(A ∩ B) = 0.15. Which of the
following...
asked 54 minutes ago