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Required: What is the noncontrolling interest's share of Rockne's 2024 income? b. Prepare Doone's 2024 consolidation entries required by the intra-entity inventory transfers

Required: What is the noncontrolling interest's share of Rockne's 2024 income? b. Prepare Doone's 2024 consolidation entries required by the intra-entity inventory transfers

FINANCIAL ACCOUNTING
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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On January 1, 2023, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $300,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was $200,000, and Rockne's assets and liabilities had a collective net fair value of $500.000. Doone uses the equity method in its internal records to account for its investment in Rockne Rockne reports net income of $160,000 in 2024 Since being acquired, Rockne has regularly supplied inventory to Doone et 25 percent more than cost. Sales to Doone amounted to $250,000 in 2023 and $300,000 in 2024. Approximately 30 percent of the Inventory purchased during any one year is not used until the following year. Required: 6. What is the noncontrolling interest's share of Rockne's 2024 income? b. Prepare Doone's 2024 consolidation entries required by the intra-entity inventory transfers What is the noncontrolling interest's share of Rockne's 2024 income? Noncontrolling interest's share 1 Prepare entry "G 2 Prepare entry TI 3 Prepare entry G (Ctrl)▾
Transcribed Image Text:On January 1, 2023, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $300,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was $200,000, and Rockne's assets and liabilities had a collective net fair value of $500.000. Doone uses the equity method in its internal records to account for its investment in Rockne Rockne reports net income of $160,000 in 2024 Since being acquired, Rockne has regularly supplied inventory to Doone et 25 percent more than cost. Sales to Doone amounted to $250,000 in 2023 and $300,000 in 2024. Approximately 30 percent of the Inventory purchased during any one year is not used until the following year. Required: 6. What is the noncontrolling interest's share of Rockne's 2024 income? b. Prepare Doone's 2024 consolidation entries required by the intra-entity inventory transfers What is the noncontrolling interest's share of Rockne's 2024 income? Noncontrolling interest's share 1 Prepare entry "G 2 Prepare entry TI 3 Prepare entry G (Ctrl)▾
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