Homework Answers
Solution:
a)
Non controlling interest has to be recognized at fair value $479,360 as on acquisition date
b)
Calculation of income attributable to NCI of seidel company:
| Details | Amount |
| Net income earned bu siedel during the year 2021 | $192,640 |
| Less: Amortization of customer relationship asset ($201,600/4) | ($50,400) |
| Net income earned after adjustment | $142,240 |
| 20% share attributable to NCI of seidel company ($142,240*20%) | $28,448 |
c)
Dividend allocation to NCI is 20% of the total dividend declared and paid =$56,000*20%
=$11,200
d)
Calculation of NCI as on December 31,2021:
| Details | Amount |
| Opening balance of NCI | $479,360 |
| Add: Income for year 2021 | $28,448 |
| Less: Dividend allocated | ($11,200) |
| Closing balance of Non Controlling Interest | $496,608 |
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