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Problem 6 Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns...
Paste Corporation owns 70 percent of Stick Corporation’s voting common stock. On the date of acquisition,...
Paste Corporation owns 70 percent of Stick Corporation’s voting common stock. On the date of acquisition, Stick’s fair value equaled its book value. On March 12, 20X2, Stick sold land it had purchased for $140,000 to Paste for $190,000. Paste plans to build a new warehouse on the property in 20X3. Paste has $500,000 of separate company net income for 20X2. This does not include any equity income from Stick. Stick has $300,000 of separate company net income. 1. What...
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January...
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $420,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $5,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $320,000. Scenic reported net income of $130,000. Placid Lake declared $120,000 in dividends during this period;...
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for...
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for $392,000. At that date, the fair value of the noncontrolling interest of Brown Corporation was $98,000. Immediately after Azure acquired its ownership, Brown purchased 60 percent of Coral Company's stock for $129,000. The fair value of the noncontrolling interest of Coral Company was $86,000 at that date. During 20X3, Azure reported operating income of $250,000 and paid dividends of $95,000. Brown reported operating income...
Please help me solve this. Protrade Corporation acquired 80 percent of the outstanding voting stock of...
Please help me solve this.
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $484,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $725,000 and the fair value of the 20 percent noncontrolling interest was $121,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual...
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...
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $25,500 is applicable...
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $25,500 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $12.400 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or...
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January...
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $630,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $6,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $530,000. Scenic reported net income of $340,000. Placid Lake declared $160,000 in dividends during this period;...
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for...
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.60 per share on January 1, 2014. The remaining 20 percent of Devine’s shares also traded actively at $7.60 per share before and after Holtz’s acquisition. An appraisal made on that date determined that all book values appropriately reflected the fair values of Devine’s underlying accounts except that a building with a 5-year life was undervalued by $72,500 and a fully amortized trademark with...
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...
Photo Corporation acquired 75 percent of Shutter Corporation's voting common stock on January 1, 20X2, at...
Photo Corporation acquired 75 percent of Shutter Corporation's voting common stock on January 1, 20X2, at underlying book value. At the acquisition date, the book values and fair values of Shutter's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 25 percent of the total book value of Shutter. Noncontrolling interest was assigned income of $8,000 in Photo's consolidated income statement for 20X2 and a balance of $65,500 in Photo's consolidated balance sheet...
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $420,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $5,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $320,000. Scenic reported net income of $130,000. Placid Lake declared $120,000 in dividends during this period;...
Azure Enterprises acquired 80 percent of Brown Corporation's voting common stock on January 1, 20X3, for $392,000. At that date, the fair value of the noncontrolling interest of Brown Corporation was $98,000. Immediately after Azure acquired its ownership, Brown purchased 60 percent of Coral Company's stock for $129,000. The fair value of the noncontrolling interest of Coral Company was $86,000 at that date. During 20X3, Azure reported operating income of $250,000 and paid dividends of $95,000. Brown reported operating income...
Please help me solve this.
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2014, for $484,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $725,000 and the fair value of the 20 percent noncontrolling interest was $121,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual...
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...
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $25,500 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $12.400 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or...
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...
Photo Corporation acquired 75 percent of Shutter Corporation's voting common stock on January 1, 20X2, at underlying book value. At the acquisition date, the book values and fair values of Shutter's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 25 percent of the total book value of Shutter. Noncontrolling interest was assigned income of $8,000 in Photo's consolidated income statement for 20X2 and a balance of $65,500 in Photo's consolidated balance sheet...
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