Homework Answers
Based on acquisition percentages , calculation of controlling intrest and non controlling intrest
| Company P | Company S | |
| Net income | 195,800 | 100,300 |
| Ownership stake | 80% | 20% |
| Controlling intrest | 80,240 | |
| Non - controlling intrest | 20,060 |
Controlling intrest of company P on company S is 100,300×80%=$80,240
Non controlling intrest of company S is 100,300×20%=$20,060.
____×____
All the best
Any doubt comment below.
Add Answer to:
Exercise 5-5 On January 1, 2014, P Company purchased an 80% interest in s Company for...
EXERCISE 5-5 T-Account Calculation of Controlling and Noncontrolling Interest in Consolidated Net Income LO 4 On...
EXERCISE 5-5 T-Account Calculation of Controlling and Noncontrolling Interest in Consolidated Net Income LO 4 On January 1, 2019, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000 and capital stock of $350,000. 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...
P Company owns 80% of the outstanding stock of S Company. During 2014, S Company reported...
P Company owns 80% of the outstanding stock of S Company. During 2014, S Company reported net income of $500,120 and declared no dividends. At the end of the year, S Company’s inventory included $442,130 in unrealized profit on purchases from P Company. Intercompany sales for 2014 totaled $2,962,200. Calculate the amount of the noncontrolling interest to be deducted from consolidated income in arriving at 2014 controlling interest in consolidated net income.
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Controlling Interest in Income On January 1, 2014, Sherwood Company, an 80% owned subsidiary of Paradise...
Controlling Interest in Income On January 1, 2014, Sherwood Company, an 80% owned subsidiary of Paradise Company, sold to Paradise Company equipment with a book value of $600,000 for $840,000. The equipment had an estimated remaining useful life of eight years on the date of the intercompany sale. Paradise Company reported net income from its independent operations of $550,000, and Sherwood Company reported net income of $300,000 in the years of 2014 and 2015. Required: Calculate the controlling interest in...
Exercise 7-8 On January 1, 2015, P Company acquired a 90% interest in S Company. During...
Exercise 7-8 On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $241,800. At the end of the year, P Company had in its inventory one-third of the amount of goods purchased from S Company. On January 1, 2016, P Company sold equipment that had a book value of $83,600 to S Company for $118,100. The equipment had...
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for...
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $262,600. On this date, Salem Company had common stock of $204,000 and retained earnings of $130,100. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Inventory Other current assets Equipment Land Book Value 530,000 50,600 305,800 199,100 Fair Value $35,200 54,300 356,100 199,100 Your answer is partially correct. Try again. Determine the amounts that should be allocated...
On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S...
On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $208,800. At the end of the year, P Company had in its inventory one-third of the amount of goods purchased from S Company. On January 1, 2016, P Company sold equipment that had a book value of $75,500 to S Company for $131,700. The equipment had an estimated...
On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S...
On January 1, 2015, P Company acquired a 90% interest in S Company. During 2016, S Company sold merchandise to P Company at 25% above cost in the amount (selling price) of $241,800. At the end of the year, P Company had in its inventory one-third of the amount of goods purchased from S Company. On January 1, 2016, P Company sold equipment that had a book value of $83,600 to S Company for $118,100. The equipment had an estimated...
The following balances were taken from the records of S Common stock (1/1/13 and 12/31/13) Retained...
The following balances were taken from the records of S Common stock (1/1/13 and 12/31/13) Retained earnings 1/1/13 Net income for 2016 Dividends declared in 2016 Retained earnings, 12/31/13 Total stockholders' equity on 12/31/13 P Company purchased 75% of s Company's common stock on January 1, 2014 for $900,000. The difference between implied value and book value is attributable to assets with a remaining useful life on January 1, 2016 of ten years. Required: $720,000 $160,000 180,000 -40,000 300,000 $1,020,000...
Problem 6 Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns...
Problem 6 Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income) of these affiliated companies for 2014 are: Paice Accardi Badger $300,000 160,000 120,000 Required: Calculate controlling interest share of consolidated net income and noncontrolling interest shares for Paice Corporation...
EXERCISE 5-5 T-Account Calculation of Controlling and Noncontrolling Interest in Consolidated Net Income LO 4 On January 1, 2019, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000 and capital stock of $350,000. 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...
Exercise 4-5 On January 1, 2014, Plate Company purchased a 90% interest in the common stock of Set Company for $597,840, an amount $20,400 in excess of the book value of equity acquired. The excess relates to the understatement of Set Company's land holdings. Excerpts from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2014, follow: 1/1/14 retained earnings Net income from above Set Company 171,200 119,700 (50,300 ) 240,600 Consolidated Balances...
Exercise 5-4 On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $262,600. On this date, Salem Company had common stock of $204,000 and retained earnings of $130,100. An examination of Salem Company's balance sheet revealed the following comparisons between book and fair values: Inventory Other current assets Equipment Land Book Value 530,000 50,600 305,800 199,100 Fair Value $35,200 54,300 356,100 199,100 Your answer is partially correct. Try again. Determine the amounts that should be allocated...
The following balances were taken from the records of S Common stock (1/1/13 and 12/31/13) Retained earnings 1/1/13 Net income for 2016 Dividends declared in 2016 Retained earnings, 12/31/13 Total stockholders' equity on 12/31/13 P Company purchased 75% of s Company's common stock on January 1, 2014 for $900,000. The difference between implied value and book value is attributable to assets with a remaining useful life on January 1, 2016 of ten years. Required: $720,000 $160,000 180,000 -40,000 300,000 $1,020,000...
Problem 6 Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income) of these affiliated companies for 2014 are: Paice Accardi Badger $300,000 160,000 120,000 Required: Calculate controlling interest share of consolidated net income and noncontrolling interest shares for Paice Corporation...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago