if parent use equity method to recored its investment, hwo do you calculatee net income attributable...
if parent use equity method to recored its investment, hwo do you calculatee net income attributable to the NCI, since we know parent net income under equity method equal to consolidated net inomce attribuatble to the parent.
Homework Answers
Net Income Attributable to non controlling interest (under equity method) =
Total Income - (Total Income x Percentage investment in subsidiary's shares by the parent company)
For Example :
Atlanta Inc. purchases 30% of Texas Corp for $500,000. At the end of the year, Texas Corp reports a net income of $100,000.
Net income attributable to NCI of Texas Corp is
$100000 - (100000 x 30%)
$100000 - $30000
$70000.
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if parent use equity method to recored its investment, hwo do
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A parent company purchased a 70% controlling interest in its
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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
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B)use the partial equity method to record its investment.
c)use the complete equity method to record its investment.
please do all 3 parts and show work.
c)uses the complete equity method to record its investment.
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Consolidation worksheet for gain on constructive
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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...
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Preparing a consolidated income statement—Cost method
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...
a) use the cost method for investment in singer
B)use the partial equity method to record its investment.
c)use the complete equity method to record its investment.
please do all 3 parts and show work.
c)uses the complete equity method to record its investment.
Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,934,300 was paid in cash. At the...
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