ulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $ plicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock ac rcent of Stone Company's voting stock. Excess business fair-value amortization on this second a ounted to $10,600 per year. For 2021, each of the three companies reported the following in cumulated by its separate accounting system. Separate operating income figures do not include any inve ridend income. Separate Operating Income $324,300 Dividends Declared Boulder Rock Stone 112,300 176,000 $116,000 23,000 41,000 quired: What is consolidated net income for 2021? How is 2021 consolidated net income distributed to the controlling and noncontrolling interests? Amount Consolidated net income for 2021 Controlling interest in consolidated net income Noncontrolling interest in consolidated net income
ulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $ plicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock ac rcent of Stone Company's voting stock. Excess business fair-value amortization on this second a ounted to $10,600 per year. For 2021, each of the three companies reported the following in cumulated by its separate accounting system. Separate operating income figures do not include any inve ridend income. Separate Operating Income $324,300 Dividends Declared Boulder Rock Stone 112,300 176,000 $116,000 23,000 41,000 quired: What is consolidated net income for 2021? How is 2021 consolidated net income distributed to the controlling and noncontrolling interests? Amount Consolidated net income for 2021 Controlling interest in consolidated net income Noncontrolling interest in consolidated net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $24,000 is
applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75
percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition
amounted to $10,600 per year. For 2021, each of the three companies reported the following information
accumulated by its separate accounting system. Separate operating income figures do not include any investment or
dividend income.
Separate Operating Income
$324,300
Dividends Declared
Boulder
$116,000
23,000
Rock
112,300
176,000
Stone
41,000
Required:
a. What is consolidated net income for 2021?
b. How is 2021 consolidated net income distributed to the controlling and noncontrolling interests?
Amount
a.
Consolidated net income for 2021
b.
Controlling interest in consolidated net income
Noncontrolling interest in consolidated net income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc1576e9-c849-48ce-8450-6aba7a1020f2%2F0fb55654-19eb-4bd1-a5c8-ff8c8c439b12%2Ffdlyhv7_processed.png&w=3840&q=75)
Transcribed Image Text:Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $24,000 is
applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75
percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition
amounted to $10,600 per year. For 2021, each of the three companies reported the following information
accumulated by its separate accounting system. Separate operating income figures do not include any investment or
dividend income.
Separate Operating Income
$324,300
Dividends Declared
Boulder
$116,000
23,000
Rock
112,300
176,000
Stone
41,000
Required:
a. What is consolidated net income for 2021?
b. How is 2021 consolidated net income distributed to the controlling and noncontrolling interests?
Amount
a.
Consolidated net income for 2021
b.
Controlling interest in consolidated net income
Noncontrolling interest in consolidated net income
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education