Preferred stock—$140 par, nonvoting and nonparticipating, 7% cumulative dividend $ 2,170,000 Common stock—$25 par value 4,170,000 Retained earnings 10,170,000 Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,400,000. The preferred stock remains in the han
Smith, Inc., has the following
| $ | 2,170,000 | |
| Common stock—$25 par value | 4,170,000 | |
| 10,170,000 | ||
Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,400,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 30-year remaining life.
During 2018, Smith reports earning $620,000 in net income and declares $530,000 in cash dividends. Haried applies the equity method to this investment.
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What is the noncontrolling interest's share of consolidated net income for this period?
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What is the balance in the Investment in Smith account as of December 31, 2018?
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What consolidation entries are needed for 2018?
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