Summit owns a 90 percent majority voting interest in Treeline. In turn, Treeline owns a 70 percent majority voting interest in Basecamp. In the current year, each firm reports the following income and dividends. Separate Company income figures do not include any investment or dividend income.
In addition, in computing its income on a full accrual basis, Treeline’s acquisition of Basecamp necessitates excess acquisition-date fair value over book value amortizations of $25,000 per year. Similarly, Summit’s acquisition of Treeline requires $20,000 of excess fair-value amortizations.
Required
Prepare an Excel spreadsheet that computes the following:
1. Treeline’s income including its equity in Basecamp earnings.
2. Summit’s income including its equity in Treeline’s total earnings.
3. Total entity net income for the three companies.
4. Net income attributable to the noncontrolling interests.
5. Difference between these elements:
• Summit’s net income.
• Total entity net income for the three companies less noncontrolling interest in the total entity’s net income. ( Hint: The difference between these two amounts should be zero.)
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.