Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $13,000 per year. For 2021, 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 dividend Income. Boulder Rock Stone Separate Operating Income $397,500 137,500 200,000 Dividends Declared $123,000 27,000 47,000 Required: a. What is consolidated net Income for 2021? b. How is 2021 consolidated net Income distributed to the controlling and noncontrolling interests?
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $13,000 per year. For 2021, 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 dividend Income. Boulder Rock Stone Separate Operating Income $397,500 137,500 200,000 Dividends Declared $123,000 27,000 47,000 Required: a. What is consolidated net Income for 2021? b. How is 2021 consolidated net Income distributed to the controlling and noncontrolling interests?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 is applicable on the
allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's
voting stock. Excess business fair-value amortization on this second acquisition amounted to $13,000 per year. For 2021, 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 dividend Income.
Boulder
Rock
Stone
Separate Operating Income
$397,500
a.
b.
137,500
200,000
Dividends Declared
Required:
a. What is consolidated net Income for 2021?
b. How is 2021 consolidated net income distributed to the controlling and noncontrolling Interests?
$123,000
27,000
47,000
Answer is not complete.
Consolidated net income for 2021
Controlling interest in consolidated net income
Noncontrolling interest in consolidated net income
Amount
$ 696,000
$
57,900](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d48e8bf-b61f-4eb4-ad84-db795a854361%2F2e1756dd-37d2-43bd-8adc-a1567d21be11%2F1tj2aa_processed.png&w=3840&q=75)
Transcribed Image Text:Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 is applicable on the
allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's
voting stock. Excess business fair-value amortization on this second acquisition amounted to $13,000 per year. For 2021, 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 dividend Income.
Boulder
Rock
Stone
Separate Operating Income
$397,500
a.
b.
137,500
200,000
Dividends Declared
Required:
a. What is consolidated net Income for 2021?
b. How is 2021 consolidated net income distributed to the controlling and noncontrolling Interests?
$123,000
27,000
47,000
Answer is not complete.
Consolidated net income for 2021
Controlling interest in consolidated net income
Noncontrolling interest in consolidated net income
Amount
$ 696,000
$
57,900
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 4 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education