Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$100 par, nonvoting and nonparticipating, 8% cumulative dividend Common stock-$10 par value Retained earnings Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,160,000. The preferred stock remains in the hand of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. uring 2021, Smith reports earning $490,000 in net income and declares $400,000 in cash dividends. Haried applies the equity method to this investment. $ 2,040,000 4,040,000 10,040,000 a. What is the noncontrolling interest's share of consolidated net income for this period? . What is the balance in the Investment in Smith account as of December 31, 2021? c. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Req A and B Req C 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, 2021? a. Net income-noncontrolling interest's share h Investment in Smith account Amount
Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$100 par, nonvoting and nonparticipating, 8% cumulative dividend Common stock-$10 par value Retained earnings Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,160,000. The preferred stock remains in the hand of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. uring 2021, Smith reports earning $490,000 in net income and declares $400,000 in cash dividends. Haried applies the equity method to this investment. $ 2,040,000 4,040,000 10,040,000 a. What is the noncontrolling interest's share of consolidated net income for this period? . What is the balance in the Investment in Smith account as of December 31, 2021? c. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Req A and B Req C 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, 2021? a. Net income-noncontrolling interest's share h Investment in Smith account Amount
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Q.18.
Transcribed Image Text:Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021:
Preferred stock-$100 par, nonvoting and
nonparticipating, 8% cumulative dividend
Common stock-$10 par value
Retained earnings
Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,160,000. The preferred stock remains in the hands
of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life.
During 2021, Smith reports earning $490,000 in net income and declares $400,000 in cash dividends. Haried applies the equity
method to this investment.
$ 2,040,000
4,040,000
10,040,000
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, 2021?
c. What consolidation entries are needed for 2021?
Complete this question by entering your answers in the tabs below.
Req A and B
Req C
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, 2021?
Amount
a. Net income -noncontrolling interest's share
b. Investment in Smith account
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