D:20Required informationPotter Company acquired 75 percent ownership of Snape Corporation in 20X5, at underlying bookvalue. On that date, the fair value of the noncontrolling interest was equal to 25 percent of the bookvalue of Snape Corporation. Potter purchased inventory from Snape for $150,000 on July 24, 20X6,and resold 90 percent of the inventory to unaffiliated companies on November 11, 20X6, for $160,000.Snape produced the inventory sold to Potter for $120,000. The companies had no other transactionsduring 20X6.Based on the information given above, what amount of consolidated net income will be assigned to the controllinginterest for 20X6?Multiple Choice$12,000$25,000$45,250$52,000

Calculation of the consolidated net income attributable to the controlling interest for 20X6:…

Answered: D:20 Required information Potter…

FINANCIAL ACCOUNTING

10th Edition

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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2-McKinney Company acquires an 60% interest in its Sandstone for a purchase price of $1.000,000. The excess of the purchase price over the book value of the Sandstone’s Stockholders’ Equity is allocated to a building (in PPE, net) that is worth $212,250 more than its book value, an unrecorded Patent that the parent valued at $125,000, and Goodwill of $348,417, 60% of which is allocated to the parent. The parent and the Sandstone report the following balance sheets on the acquisition date: McKinney Sandstone McKinney Sandstone Cash $1,500,000 $300,000 Current Liabilities $750,000 $300,000 Accounts receivable 1,597,500 240,000 Long-term Liabilities 1,268,222 410,000 Inventory 2,689,550 275,000 Common Stock 235,000 75,000 Equity Investment 1,000,000 APIC 5,472,211 156,000 PPE, net 6,008,510 876,000 Retained Earnings 5,070,127 750,000…
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ces On January 1, 2023, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Incorporated, for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $700,000, retained earnings of $250,000, and a noncontrolling interest fair value of $245,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing. During the next two years, Smashing reported the following: Items 2023 2024 Net Income $ 150,000 130,000 Dividends Declared $ 35,000 45,000 Inventory Purchases from Corgan $ 100,000 120,000 Corgan sells inventory to Smashing using a 60 percent markup on cost. At the end of 2023 and 2024, 40 percent of the current year purchases remain in Smashing's inventory. Required: a. Compute the equity method balance in Corgan's Investment in Smashing, Incorporated, account as of December…
how much is the non-controlling interest on december 31, 20x2 if entity A acquired 90% interest in entity B on January 1, 20x1 when Entity B's net assets had a fair value of 100. on december 31, 20x2 entity B's net assets increased to 200 after adjustments for acquisition date for fair values, net of depreciation
PP-SS
M9-23 Assigning Purchase Price in Acquisitions Jasper Company acquired 80% of Fey Company at the beginning of the current year. Jasper paid $150,000 more than the book value of Eex's stockholders' equity and determined that this excess purchase price related to intangible assets. How does the $150,000 appear on the consolidated Jasper Company balance sheet if the intangible assets acquired related to (a) patents or, alternatively, (b) goodwill? How would each scenario affect the consolidated income statement?
BTS Corporation reports net assets of P300,000 at book value. These net assets have an estimated fair value of P350,000. TWICE Corporation buys 80% ownership of BTS for P300,000; there is a control premium of P10,000 included in the purchase price.Of the goodwill reported in the consolidated balance sheet (as of date of acquisition), how much is attributable to the non-controlling interest? 3,000 2,500 4,500 5,000
ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of non-controlling interest on the acquisition date consolidated balance sheet?
No. 32
M 11
Subject: AFAR
Sagar

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