On January 1, 2019, Biscayne Corporation purchased 80% of Arches corporation for $1,000,000. On December 31,...
On January 1, 2019, Biscayne Corporation purchased 80% of Arches corporation for $1,000,000. On December 31, 2019, Biscayne reports revenues of $800,000 and expenses of $450,000, and Arches reports revenues of $600,000 and expenses of $400,000. The parent figures contain no income from the subsidiary. The annual excess fair-value amortization is $40,000. On the consolidated financial statements, what is the income attributable to the noncontrolling party?
|
200,000 |
||
|
160,000 |
||
|
40,000 |
||
|
32,000 |
||
|
0 |
Homework Answers
Answer:
what is the income attributable to the noncontrolling party?
Option (C) 40,000
(600000-400000)*20%
Add Answer to:
On January 1, 2019, Biscayne Corporation purchased 80% of Arches
corporation for $1,000,000. On December 31,...
Consolidation worksheet for gain on constructive retirement of subsidiary’s debt with no AAP—Equity method Assume that...
Consolidation worksheet for gain on constructive
retirement of subsidiary’s debt with no AAP—Equity
method
Assume that a Parent company acquires a 80% interest in its
Subsidiary on January 1, 2015. On the date of acquisition, the fair
value of the 80 percent controlling interest was $640,000 and the
fair value of the 20 percent noncontrolling interest was $160,000.
On January 1, 2015, the book value of net assets equaled $800,000
and the fair value of the identifiable net assets equaled...
On January 1, 2017, Chamberlain Corporation pays $589,600 for a 60 percent ownership in Neville. Annual...
On January 1, 2017, Chamberlain Corporation pays $589,600 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $19,900 results from the acquisition. On December 31, 2018, Neville reports revenues of $469,000 and expenses of $313,000 and Chamberlain reports revenues of $753,000 and expenses of $442,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?
On January 1, 2018, Chamberlain Corporation pays $550,000 for an 80% ownership in Neville. Annual excess...
On January 1, 2018, Chamberlain Corporation pays $550,000 for an 80% ownership in Neville. Annual excess fair-value amortization of $25,000 results from the acquisition. For the year ended December 31, 2019, Chamberlain reports net income of $340,000 and Neville reports $175,000. The parent figures contain no income from the subsidiary. What is the consolidated net income attributable to the non- controlling interest? a. $35,000 b. $18,500 c. $23,000 d. $30,000
Assume that on 1/1/X0, a parent company acquires a 70% interest in its subsidiary for a price at ...
Assume that on 1/1/X0, a parent company acquires a 70% interest
in its subsidiary for a price at $480,000 over book value. The
excess is assigned as follows:
Asset
Fair Value
Useful Life
Patent
$320,000
8 years
Goodwill
160,000
Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the
pre-consolidation financial statements for both the parent and the
subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by
placing the appropriate...
A) On January 1, 2017, Chamberlain Corporation pays $586,000 for a 60 percent ownership in Neville....
A) On January 1, 2017, Chamberlain Corporation pays $586,000 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $18,500 results from the acquisition. On December 31, 2018, Neville reports revenues of $514,000 and expenses of $359,000 and Chamberlain reports revenues of $775,000 and expenses of $421,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation? B) Mittelstaedt Inc., buys 60 percent of the outstanding stock of Sherry, Inc....
Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The...
Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2015 Sea-Breeze had the following assets and liabilities: Book Value Fair Value Current assets $ 150,000 $ 150,000 Land 200,000 200,000 Buildings (net) (6-year remaining life) 300,000 360,000 Equipment (net) (4-year remaining life) 300,000 280,000 Patent (10-year remaining life) 0...
Determining ending consolidated balances in the third year following the acquisition—Equity method Assume that your company...
Determining ending consolidated balances in the third year following the acquisition—Equity method Assume that your company acquired a subsidiary on January 1, 2017. The purchase price was $900,000 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 Original Amount Original Useful Life Patent $600,000 10 years Goodwill 300,000 Indefinite $900,000 The [A] assets with a useful life have been amortized as part of...
Determining ending consolidated balances in the third year following the acquisition-Equity method Assume that your company...
Determining ending consolidated balances in the third year following the acquisition-Equity method Assume that your company acquired a subsidiary on January 1, 2017. The purchase price was $1,000,000 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: Original Original [A] Asset Amount Useful Life Patent $700,000 10 years Goodwill 300,000 indefinite $1,000,000 The [A] assets with a useful life have been amortized as part of...
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...
Part A: On January 1, 2019, Portugal Corporation bought 100% of the stock of Sweden Corporation...
Part A:
On January 1, 2019, Portugal Corporation bought 100% of the
stock of Sweden Corporation for $500,000 (with cash). The Balance
Sheets of the two companies immediately after Portugal acquired
(January 1, 2019) Sweden Corporation showed the following
amounts:
At the date of acquisition, Portugal owed Sweden $40,000. Also,
on the date of acquisition the Book Value of Sweden equaled its
Fair Value. At the end of the first year of combination, Portugal
expects a combined tax rate of...
Consolidation worksheet for gain on constructive
retirement of subsidiary’s debt with no AAP—Equity
method
Assume that a Parent company acquires a 80% interest in its
Subsidiary on January 1, 2015. On the date of acquisition, the fair
value of the 80 percent controlling interest was $640,000 and the
fair value of the 20 percent noncontrolling interest was $160,000.
On January 1, 2015, the book value of net assets equaled $800,000
and the fair value of the identifiable net assets equaled...
On January 1, 2018, Chamberlain Corporation pays $550,000 for an 80% ownership in Neville. Annual excess fair-value amortization of $25,000 results from the acquisition. For the year ended December 31, 2019, Chamberlain reports net income of $340,000 and Neville reports $175,000. The parent figures contain no income from the subsidiary. What is the consolidated net income attributable to the non- controlling interest? a. $35,000 b. $18,500 c. $23,000 d. $30,000
Assume that on 1/1/X0, a parent company acquires a 70% interest
in its subsidiary for a price at $480,000 over book value. The
excess is assigned as follows:
Asset
Fair Value
Useful Life
Patent
$320,000
8 years
Goodwill
160,000
Indefinite
70% of the goodwill is allocated to the parent.
Included in the attached Excel spreadsheet are the
pre-consolidation financial statements for both the parent and the
subsidiary.
Submission Requirements:
Prepare the consolidated financial statements at 12/31/X6 by
placing the appropriate...
Determining ending consolidated balances in the third year following the acquisition-Equity method Assume that your company acquired a subsidiary on January 1, 2017. The purchase price was $1,000,000 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: Original Original [A] Asset Amount Useful Life Patent $700,000 10 years Goodwill 300,000 indefinite $1,000,000 The [A] assets with a useful life have been amortized as part of...
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...
Part A:
On January 1, 2019, Portugal Corporation bought 100% of the
stock of Sweden Corporation for $500,000 (with cash). The Balance
Sheets of the two companies immediately after Portugal acquired
(January 1, 2019) Sweden Corporation showed the following
amounts:
At the date of acquisition, Portugal owed Sweden $40,000. Also,
on the date of acquisition the Book Value of Sweden equaled its
Fair Value. At the end of the first year of combination, Portugal
expects a combined tax rate of...
Most questions answered within 3 hours.
-
1. Develop a use case diagram for the bank case study described
in Chapter 1. 2....
asked 30 seconds from now -
The phylum Protista has often been referred to as a junk drawer
of classification. Explain what...
asked 6 minutes ago -
The average amount of money spent for lunch per person in the
college cafeteria is $7.09...
asked 8 minutes ago -
You follow the lab procedure and at the end of Part 4C, you used
an average...
asked 27 minutes ago -
Write 250-450 words, about the following: • Analyze how a
servant leader in your organization or...
asked 30 minutes ago -
3. American and Japanese workers can each produce 4 cars a
year. An American worker can...
asked 33 minutes ago -
On October 1, 20X1, a company purchased a piece of land by
agreeing to pay the...
asked 45 minutes ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 50 minutes ago -
What are the roles of 3' and 5' untranslated regions in
mRNAs?
asked 52 minutes ago -
A domestic television receives antenna delivers a sky noise
power of -105 dBm to a matched...
asked 50 minutes ago -
What do you think are the chemical reactions involved in the
breathalyzer tests administered to potentially...
asked 1 hour ago -
A random sample of 120 observations produces a mean of
38.2 from a population with a...
asked 1 hour ago