Computing the noncontrolling interests equity balance Assume the following facts relating to an 90% owned subsidiary company: BOY stockholders’ equity $1,300,000 BOY AAP assets 169,000 Net income of subsidiary (not including [A] asset depreciation and amortization) 312,000 AAP assets depreciation and amortization expense 52,000 Dividends declared and paid by subsidiary 26,000 a. Compute the net income attributable to noncontrolling interests for the year. b. Compute the amount reported as noncontrolling equity at the end of the year.

Computing the noncontrolling interests equity balance Assume the following facts relating to an 90% owned subsidiary company: BOY stockholders’ equity $1,300,000 BOY AAP assets 169,000 Net income of subsidiary (not including [A] asset depreciation and amortization) 312,000 AAP assets depreciation and amortization expense 52,000 Dividends declared and paid by subsidiary 26,000 a. Compute the net income attributable to noncontrolling interests for the year. b. Compute the amount reported as noncontrolling equity at the end of the year.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 29E

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Computing the noncontrolling interests equity balance

Assume the following facts relating to an 90% owned subsidiary company:

BOY stockholders’ equity	$1,300,000
BOY AAP assets	169,000
Net income of subsidiary (not including [A] asset depreciation and amortization)	312,000
AAP assets depreciation and amortization expense	52,000
Dividends declared and paid by subsidiary	26,000

a. Compute the net income attributable to noncontrolling interests for the year.

b. Compute the amount reported as noncontrolling equity at the end of the year.

Definition Definition Assets available to stockholders after a company's liabilities are paid off. Stockholders’ equity is also sometimes referred to as owner's equity. A stockholders’ equity or book value generally includes common stock, preferred stock, and retained earnings and is an indicator of a company's financial strength.

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Computing the noncontrolling interests equity balance Assume the following facts relating to an 90% owned subsidiary company: BOY stockholders’ equity $900,000 BOY AAP assets 117,000 Net income of subsidiary (not including [A] asset depreciation and amortization) 216,000 AAP assets depreciation and amortization expense 36,000 Dividends declared and paid by subsidiary 18,000 b. Compute the amount reported as noncontrolling equity at the end of the year. $Answer
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