Boulder, Incorporated, obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $22,300 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2023, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,600 per year. For 2024, 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. Company Separate Operating Income Dividends Declared Boulder $ 263,300 $ 111,000 Rock 91,300 21,000 Stone 156,000 48,000 Required: What is consolidated net income for 2024? How is 2024 consolidated net income distributed to the controlling and noncontrolling interests?

Boulder, Incorporated, obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $22,300 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2023, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,600 per year. For 2024, 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. Company Separate Operating Income Dividends Declared Boulder $ 263,300 $ 111,000 Rock 91,300 21,000 Stone 156,000 48,000 Required: What is consolidated net income for 2024? How is 2024 consolidated net income distributed to the controlling and noncontrolling interests?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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Company	Separate Operating Income	Dividends Declared
Boulder	$ 263,300	$ 111,000
Rock	91,300	21,000
Stone	156,000	48,000

Required:

What is consolidated net income for 2024?
How is 2024 consolidated net income distributed to the controlling and noncontrolling interests?

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