On July 1, 2022, Livermore, Inc., acquired 60 percent of Rough Company for $420,000. The remaining 40 percent of Rough's outstanding shares continue to trade at a collective value of $280,000. On that date patent owned by Rough with 10-year remaining life is undervalued by $100,000. Rough has a book value of net assets at $480,000 on January 1, 2022. The affiliates report the following 2022 amount from their own separate operations: Revenues Expenses Dividends (declared quarterly) Livermore a. $302,000 b. $286,000 $700,000 450,000 124,000 Rough $220,000 70,000 30,000 Assume Rough's revenues and expenses occurred uniformly throughout the year. On 2022 consolidated income statement, what is the amount of consolidated net income allocated to the controlling interest?
On July 1, 2022, Livermore, Inc., acquired 60 percent of Rough Company for $420,000. The remaining 40 percent of Rough's outstanding shares continue to trade at a collective value of $280,000. On that date patent owned by Rough with 10-year remaining life is undervalued by $100,000. Rough has a book value of net assets at $480,000 on January 1, 2022. The affiliates report the following 2022 amount from their own separate operations: Revenues Expenses Dividends (declared quarterly) Livermore a. $302,000 b. $286,000 $700,000 450,000 124,000 Rough $220,000 70,000 30,000 Assume Rough's revenues and expenses occurred uniformly throughout the year. On 2022 consolidated income statement, what is the amount of consolidated net income allocated to the controlling interest?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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B12.
Transcribed Image Text:On July 1, 2022, Livermore, Inc., acquired 60
percent of Rough Company for $420,000. The
remaining 40 percent of Rough's outstanding
shares continue to trade at a collective value
of $280,000. On that date patent owned by
Rough with 10-year remaining life is
undervalued by $100,000. Rough has a book
value of net assets at $480,000 on January 1,
2022. The affiliates report the following 2022
amount from their own separate operations:
Revenues
Expenses
Dividends (declared quarterly)
Livermore
a. $302,000
b. $286,000
c. $292,000
d. $264,000
$700,000
450,000
124,000
Rough
$220,000
70,000
30,000
Assume Rough's revenues and expenses
occurred uniformly throughout the year. On
2022 consolidated income statement, what is
the amount of consolidated net income
allocated to the controlling interest?
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