Musical Corporation purchases 80% of the common shares of Dustin Corporation on January 1, 2025. On January 2, 2025, Dustin Corporation purchases 60% of the common stock of Rustin Corporation. Information on company book values on the date of purchase and operating results for 2025 is as follows: Company Musical Corporation Dustin Corporation Rustin Corporation 2025 Operating Income 100,000 80,000 50,000 Book Value Purchase Price 800,000 300,000 200,000 240,000 120,000 1. How much is the consolidated net income for 2025? 2. The amount of 2025 income assigned to the noncontrolling interest of Rustin Corporation is: 3. The amount of 2025 income assigned to the noncontrolling interest of Dustin Corporation is:

Musical Corporation purchases 80% of the common shares of Dustin Corporation on January 1, 2025. On January 2, 2025, Dustin Corporation purchases 60% of the common stock of Rustin Corporation. Information on company book values on the date of purchase and operating results for 2025 is as follows: Company Musical Corporation Dustin Corporation Rustin Corporation 2025 Operating Income 100,000 80,000 50,000 Book Value Purchase Price 800,000 300,000 200,000 240,000 120,000 1. How much is the consolidated net income for 2025? 2. The amount of 2025 income assigned to the noncontrolling interest of Rustin Corporation is: 3. The amount of 2025 income assigned to the noncontrolling interest of Dustin Corporation is:

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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Concept explainers

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

Musical Corporation purchases 80% of the common shares of Dustin Corporation on January 1, 2025. On January 2,
2025, Dustin Corporation purchases 60% of the common stock of Rustin Corporation. Information on company book
values on the date of purchase and operating results for 2025 is as follows:
Company
Musical Corporation
Dustin Corporation
Rustin Corporation
1. How much is the consolidated net income for 2025?
2. The amount of 2025 income assigned to the noncontrolling interest of Rustin Corporation is:
3. The amount of 2025 income assigned to the noncontrolling interest of Dustin Corporation is:
4.
Book Value
Purchase Price
800,000
300,000
200,000
2025 Operating Income
100,000
80,000
50,000
240,000
120,000
The amount of income assigned to the noncontrolling interest in the 2025

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