On January 1, 2019, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $50,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $242,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years.Carper earned income and paid cash dividends as follows: NI Div Paid 2019 $150,000 $33,600 2020 $166,400 $55,600 2021 $184,000 $75,000 On December 31, 2021, Vacker owed $20,800 to Carper. There have been no changes in Carper's common stock account since the acquisition. 2. Calculate the following amounts for individual accounts: the balance of investment in Carper on Vacker’s book on Dec 31st 2020; noncontrolling interest on consolidated financial statement on Dec 31st, 2020); and the balance of noncontrolling interest on Dec 31st 2021. 3. List all necessary consolidation entries as of December 31, 2021?
On January 1, 2019, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $50,000 control premium. Carper reported common stock on that date of $420,000 with
Carper earned income and paid cash dividends as follows:
|
NI |
Div Paid |
|
|
2019 |
$150,000 |
$33,600 |
|
2020 |
$166,400 |
$55,600 |
|
2021 |
$184,000 |
$75,000 |
On December 31, 2021, Vacker owed $20,800 to Carper. There have been no changes in Carper's common stock account since the acquisition.
2. Calculate the following amounts for individual accounts:
the balance of investment in Carper on Vacker’s book on Dec 31st 2020;
noncontrolling interest on consolidated financial statement on Dec 31st, 2020);
and the balance of noncontrolling interest on Dec 31st 2021.
3. List all necessary consolidation entries as of December 31, 2021?
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