What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date? How much of 2021 consolidated net income should be allocated to the noncontrolling interest? What amount of 2021 dividends should be allocate
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,900,320 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $475,080. Seidel’s acquisition-date total book value was $1,887,000.
The fair value of Seidel’s recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets—a trademark with an indefinite life and estimated fair value of $271,950 and several customer relationships estimated to be worth $199,800 with four-year remaining lives. Any remaining acquisition-date fair value in the Seidel acquisition was considered goodwill.
During 2021, Seidel reported $190,920 net income and declared and paid dividends totaling $55,500. Also in 2021, Ackerman reported $388,500 net income, but neither declared nor paid dividends.
What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date?
How much of 2021 consolidated net income should be allocated to the noncontrolling interest?
What amount of 2021 dividends should be allocated to the noncontrolling interest?
What amount of noncontrolling interest should appear in the owners’ equity section of Ackerman’s consolidated balance sheet at December 31, 2021?
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What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date? How much of 2021 consolidated net income should be allocated to the noncontrolling interest? What amount of 2021 dividends should be allocate
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,917,440 in cash consideration....
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excess was assigned to a building that was estimated to be
undervalued by $180,000 and to an unrecorded Trademark valued at
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On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,917,440 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $479,360. Seidel's acquisition-date total book value was $1,904,000. The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets, a trademark with an indefinite life and estimated fair value of $274,400 and several customer relationships estimated to be worth $201,600 with four-year...
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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...
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