The following balances were taken from the records of Sheridan Company: Common stock (1/1/20 and 12/31/20) Retained earnings 1/1/20 Net income for 2023 Dividends declared in 2023 Retained earnings, 12/31/20 Total stockholders' equity on 12/31/20 $162,700 183,500 (43,800) $724,100 302,400 $1,026,500
The following balances were taken from the records of Sheridan Company: Common stock (1/1/20 and 12/31/20) Retained earnings 1/1/20 Net income for 2023 Dividends declared in 2023 Retained earnings, 12/31/20 Total stockholders' equity on 12/31/20 $162,700 183,500 (43,800) $724,100 302,400 $1,026,500
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...
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Question
![The following balances were taken from the records of Sheridan Company:
Common stock (1/1/20 and 12/31/20)
Retained earnings 1/1/20
Net income for 2023
Dividends declared in 2023
Retained earnings, 12/31/20
Total stockholders' equity on 12/31/20
(a)
1.
(b)
Windsor Company purchased 75% of Sheridan Company's common stock on January 1, 2021 for $901,200. The difference between implied value and t
2.
1.
Compute the difference between cost/(implied) and book value applying:
2.
eTextbook and Media
Parent company theory.
Economic unit theory.
Save for Later
Show Transcribed Text
1.
Parent company theory
2.
Economic unit theory
1.
2.
Assuming the economic unit theory:
$
$162,700
$
eTextbook and Media
183,500
Save for Later
(43,800)
Noncontrolling interest in net assets
Noncontrolling interest in consolidated income
$724,100
Difference
302,400
$1,026,500
Compute noncontrolling interest in consolidated income for 2023
Compute noncontrolling interest in net assets on December 31, 2023.
C
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9b8bd015-a38a-4986-a91e-a477dbe1a4e6%2F154cc296-bd61-4d53-a6e2-e697ff8ae24e%2Fe3n12so_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following balances were taken from the records of Sheridan Company:
Common stock (1/1/20 and 12/31/20)
Retained earnings 1/1/20
Net income for 2023
Dividends declared in 2023
Retained earnings, 12/31/20
Total stockholders' equity on 12/31/20
(a)
1.
(b)
Windsor Company purchased 75% of Sheridan Company's common stock on January 1, 2021 for $901,200. The difference between implied value and t
2.
1.
Compute the difference between cost/(implied) and book value applying:
2.
eTextbook and Media
Parent company theory.
Economic unit theory.
Save for Later
Show Transcribed Text
1.
Parent company theory
2.
Economic unit theory
1.
2.
Assuming the economic unit theory:
$
$162,700
$
eTextbook and Media
183,500
Save for Later
(43,800)
Noncontrolling interest in net assets
Noncontrolling interest in consolidated income
$724,100
Difference
302,400
$1,026,500
Compute noncontrolling interest in consolidated income for 2023
Compute noncontrolling interest in net assets on December 31, 2023.
C
$
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