Pop Company acquired an 80 percent interest in Son Company on January 1, 2016, for $1,600,000 in excess of book value and fair value. On January 1, 2019, Pop had $4,000,000 par, 8 percent bonds outstanding with a $160,000 unam- ortized discount. On January 2, 2019, Son purchased $1,600,000 par of Pop's bonds at par. The bonds mature on January 1, 2023, and pay interest on January 1 and July 1. Pop's separate income, not including investment income, for 2019 is $3.200,000, and Son's reported net income is $2,000,000. REQUIRED:Determine the following: 1. Controlling interest share of consolidated net income for Pop and Subsidiary for 2019 2. Noncontrolling interest share for 2019

Pop Company acquired an 80 percent interest in Son Company on January 1, 2016, for $1,600,000 in excess of book value and fair value. On January 1, 2019, Pop had $4,000,000 par, 8 percent bonds outstanding with a $160,000 unam- ortized discount. On January 2, 2019, Son purchased $1,600,000 par of Pop's bonds at par. The bonds mature on January 1, 2023, and pay interest on January 1 and July 1. Pop's separate income, not including investment income, for 2019 is $3.200,000, and Son's reported net income is $2,000,000. REQUIRED:Determine the following: 1. Controlling interest share of consolidated net income for Pop and Subsidiary for 2019 2. Noncontrolling interest share for 2019

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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