On January 1, 2021, Johnsonville Enterprises, Inc., acquired 80 percent of Stayer Company'soutstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percentownership interest was proportionately representative of the fair value of all of Stayer's shares.At acquisition date, Stayer's books showed assets of $4,200,000 and liabilities of $1,600,000.The recorded assets and liabilities had fair values equal to their individual book values exceptthat a building (10-year remaining life) with book value of $195,000 had an appraised fair value of$345,000. Stayer's books showed a $175,500 carrying amount for this building at the end of2021.Also, at acquisition date Stayer possessed unrecorded technology processes (zero book value)with an estimated fair value of $1,000,000 and a 20-year remaining life. For 2021, Johnsonvillereported net income of $650,000 (before recognition of Stayer's income), and Stayer separatelyreported earnings of $350,000. During 2021, Johnsonville declared dividends of $85,000 andStayer declared $50,000 in dividends.Compute the amounts that Johnsonville Enterprises should report in its December 31, 2021,consolidated financial statements for the following items:a. Stayer's building (net of accumulated depreciation).b. Stayer's technology processes (net of accumulated amortization).c. Net income attributable to the noncontrolling interest.d. Net income attributable to controlling interest.e. Noncontrolling interest in Stayer.$310,500950,000

When companies create statements they merge the financial data, from the main company and its…

a. Stayer's building (net of accumulated depreciation). b. Stayer's technology processes (net of accumulated amortization). c. Net income attributable to the noncontrolling interest. d. Net income attributable to controlling interest. e. Noncontrolling interest in Stayer. $ $ 310,500 950,000

a. Stayer's building (net of accumulated depreciation). b. Stayer's technology processes (net of accumulated amortization). c. Net income attributable to the noncontrolling interest. d. Net income attributable to controlling interest. e. Noncontrolling interest in Stayer. $ $ 310,500 950,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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