Preferred stock-$100 par, nonvoting and nonparticipating, 8% cumulative dividend Common stock-$20 par value .... Retained earnings... $2,000,000 10,000,000
Smith, Inc., has the following
Haried Company purchases all of Smith’s common stock on January 1, 2018, for $14,040,000. The
During 2018, Smith reports earning $450,000 in net income and declares $360,000 in cash dividends. Haried applies the equity method to this investment.
a. What is the noncontrolling interest’s share of consolidated net income for this period?
b. What is the balance in the Investment in Smith account as of December 31, 2018?
c. What consolidation entries are needed for 2018?
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