---### Non-Controlling Interest Calculation#### Problem Statement:On 1/1/2019, X CO acquired 80% of Y common stock for $150,000. On the same day, Y's net assets were valued at $140,000. The fair value of assets and liabilities were equal. By the end of the year on 31/12/2019, Y reported an income of $50,000 and declared a dividend of $30,000. X CO is using equity methods. Calculate the non-controlling interest balance on 1/1/2019.#### Choices:- a. $37,500- b. $47,500- c. $50,000- d. $10,000#### Solution:Let's calculate the non-controlling interest (NCI) at the acquisition date, which is 1/1/2019.1. **Total Net Assets of Y on 1/1/2019:** \[ \text{Net Assets} = \$140,000 \]2. **Percentage Ownership by X CO:** \[ \text{Ownership Percentage} = 80\% \]3. **Percentage of Non-Controlling Interest:** \[ \text{Non-Controlling Interest Percentage} = 100\% - 80\% = 20\% \]4. **Value of Non-Controlling Interest:** \[ NCI = \text{Net Assets} \times \text{NCI Percentage} \\ NCI = \$140,000 \times 20\% = \$28,000 \]Hence, the non-controlling interest balance on 1/1/2019 should be \$28,000. However, since the choices given in the question do not match with this calculated value, it indicates either the problem statement might need a closer examination or additional assumptions might be needed to reconcile the given options. Please review the details provided or assumptions used in the calculation.#### Final Answer:Refer to the available choices and recheck given conditions or stated figures for alignment with the choices.---This explanation transforms the image into a clear, structured text suitable for an educational website. It includes a detailed step-by-step solution for understanding the calculation of non-controlling interest.

The question is related to Consolidated Financial Statements. Date of Acquisition:- 1/1/2019 Stake…

on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 47,500 c. 50,000 d. 10,000 Next page ere to search hp 近

on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the Y net assets was $ 140,000 , in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 Y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non- controlling interest balance on 1/1/2019 Select one: a. 37,500 b. 47,500 c. 50,000 d. 10,000 Next page ere to search hp 近

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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X co, purchased 60% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 what is amount of NCI in net assets reported in consolidated Balance sheet on 1/1/2020 Select one: a. 88,000 b. 200,000 c. 75,000 d. 85,000
on 1/1/2019 X CO acquired 80% of Y common stock for $150,000 in the same day the y net assets was $ 140,000 ,in the same date the fair value of assets and liabilities were equal .year ended 31/12/2019 y reported income $50,000 , declared dividend $30,000 , X using equity methods what is non controlling interest in net income balance on 31/12/2019 Select one: a. 37,500 b. 10,000 c. 4,000 d. 41,500
QUESTION 2. On September 5, 2019, Soy Company, the 80%-owned subsidiary of Pro Corporation, declared a cash dividend of$1 a share on its 100,000 outstanding shares of S1 par common stock. The dividend was paid on September 26, 2019. For the fiscal year ended September 30, 2019, the first year of the Pro-Soy affiliation, Soy had a net income of $300,000. In addition to goodwill of S80,000, the September 30, 2002 (date of the business combination) working paper elimination (in journal entry format) for Pro Corpo- ration and subsidiary included the following debits: $60,000 Inventories (first-in, first-out cost)-Soy Plant assets (net) (all depreciable over a 10-vear economic life, $80,000 $20,000 straight-line method)-Soy Discount on long-term debt (5-year remaining term)-Soy Prepare journal entries for Pro Corporation on September 5, 26, and 30, 2019, to record its equity method of accounting for the operating results of Soy Company. Use the straight-line method of amortization for…
PROBLEM V. On January 2, 2020, P Company acquired 80% interest in S Company for P4,125,000 cash. On this date, the outstanding ordinary share capital and accumulated profits of P Company and S Company are as follows: P Company S Company Ordinary share capital P2,250,000 P1,312,000 Share premium 1,500,000 Accumulated profits (losses) 5,250,000 3,187,500 There was no issuance of ordinary shares during the year. Noncontrolling interest is initially measured at fair value. Fair value of the following assets of S Company exceeded their book values as follows: Inventories, P210,000; Property and equipment (remaining useful life 10 years), P127,500. All other assets and liabilities are fairly valued. Goodwill if any is not impaired. On December 31, 2020, the two companies reported the following operating results: P Company S Company Net income P1,785,000 P975,000 Dividends paid 525,000 262,500 1. Compute for the consolidated shareholders' equity.
H1. Account
Company P acquired 90 percent of the common stock of Company S on 1/1/2020. During 2020, Company S reported a net income of $50,000 and dividends of $12,000. Company P uses the simple equity method to account for the investment in S. Which of the following entries is prepared by Company P when consolidating the financial statements for 2020? Debit Subsidiary Income $45,000, Credit Investment in S $45,000 Debit Investment in S $45,000, Credit Subsidiary Income $45,000 Debit Dividends Receivable $10,800, Credit Subsidiary Income $10,800 Debit Subsidiary Income $10,800, Credit Dividends Declared $10,800
Carla Vista Company acquires 78 Dodd's 11%, 5 year. $1000 bonds on January 1, 2021 for $78000. The journal entry to record this investment includes a debit to O Stock Investments for $78000. O Debt Investments for $78000. O Cash for $78000. O Debt Investments for $86580.
X co, purchased 80% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 what is the amount of income from subsidiary reported in parents co income statement on 31/12/2020 Select one: a. 122,800 b. 102,000 c. 107,200 d. 128,000
X co, purchased 100% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 if Building balance in 31/12/2020 in parent co 50,000 & in subsidiary co 60,000 what is amount of Building in consolidated balance sheet in 31/12/2020 Select one: a. 122,000 b. 96,000 c. 110,000 d. 98,000
X co, purchased 75% of Y Common stock at 1/1/2020 for $ 300,000 ,on the same date the Y co stock was $ 100,000 and retained earning $120,000 , at acquisition date the net assets of Y co. book value was equal to fair value except ( inventory FV more than BV of $26,000) and (land its FV more than BV10,000 ) (Building its FV more than BV by $ 14,000 ) but ( equipment its FV less than B V by $10,000) if Y CO. reported $160,000 net income for 31/12/2020 and paid $ 60,000 dividends . Other information 1- the y inventory completely sold during 2020 2- the building useful life was 7 years , but equipment 5 years 3- there is no impairment for goodwill during 2020 What is the amount of NCI in net assets in 1/1/2020 Select one: a. 100,000 b. 55,000 c. 80,000 d. 75,000