Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$150 par, nonvoting and nonparticipating, Common stock-$10 par value Retained earnings cumulative dividend Harled Company purchases all of Smith's common stock on January 1, 2021, for $14,440,000. 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 $640,000 in net income and declares $550,000 in cash dividends. Haried applies the equity method to this investment. 2,190,000 4,190,000 10,190,000 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? e. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Reg A and B Req C 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, 20217 Net income-noncontrolling interests share tin Smith account $ Amount 131.400 1,500
Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$150 par, nonvoting and nonparticipating, Common stock-$10 par value Retained earnings cumulative dividend Harled Company purchases all of Smith's common stock on January 1, 2021, for $14,440,000. 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 $640,000 in net income and declares $550,000 in cash dividends. Haried applies the equity method to this investment. 2,190,000 4,190,000 10,190,000 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? e. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Reg A and B Req C 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, 20217 Net income-noncontrolling interests share tin Smith account $ Amount 131.400 1,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021:
cumulative dividend
Preferred stock-$150 par, nonvoting and
nonparticipating,
Common stock-$10 par value
Retained earnings
Harled Company purchases all of Smith's common stock on January 1, 2021, for $14,440,000. 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 $640,000 in net income and declares $550,000 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, 2021?
c. What consolidation entries are needed for 2021?
2,190,000
4,190,000
10,190,000
Complete this question by entering your answers in the tabs below.
Reg A and B
Req C
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, 20217
Net income-noncontrolling interests share
Investment in Smith account
$
$
Amount
131.400
1,500
ReqC >
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