What is the amount of comprehensive attributable to the controlling interest in 2020?
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On January 1, 2019, Vachirawit Company acquired 80% of Metawin Company's common stock for 280,000 cash. At that date, Metawin reported common stock outstanding of 200,000 and
| Year | Net Income | Comprehensive Income | Dividends Paid |
| 2019 | 25,000 | 30,000 | 5,000 |
| 2020 | 35,000 | 45,000 | 10,000 |
Vachirawit reported separate net income from own operations of 100,000 and paid dividends of 30,000 for both years.
What is the amount of comprehensive attributable to the controlling interest in 2020?
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- Assume that, on January 1, 2021, Sycamore Corp. paid $2,040,000 for its investment in 36,000 shares of Starfish Inc. Further, assume that Starfish has 120,000 total shares of stock issued and estimates an eight-year remaining useful life and straight-line depreciation with no residual value for its depreciable assets. At January 1, 2021, the book value of Starfish's identifiable net assets was $7,060,000, and the fair value of Starfish was $10,000,000. The difference between Starfish's fair value and the book value of its identifiable net assets is attributable to $1,950,000 of land and the remainder to depreciable assets. Goodwill was not part of this transaction. The following information pertains to Starfish during 2021: Net Income $600,000 Dividends declared and paid $360,000 Market price of common stock on 12/31/2021 $ 80/share What amount would Sycamore Corp. report in its year-end 2021 balance sheet for its investment in Starfish Inc.? Multiple Choice $2,074,875. $2,220,000.…On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000 cash. The fair value of the noncontrolling interest at that date was determined to be $175,000. At the date of the business combination, the book values of Sand's net assets and liabilities approximated fair value except for depreciable plant assets, which were OVERvalued by $4000 and Inventory, which was UNDERvalued by $9000 The remaining useful life of the plant assets was set at 10 years. For the year ended December 31, 2020, Pail reported Cost of Goods Sold of $14000 on its general ledger. Sand reported Cost of Goods Sold of $16000 on its general ledger. What amount of COST OF GOODS SOLD should be reported on the 12/31/20 consolidated Income Statement?On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,274,000 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $1,540,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $270,000. On January 1, 2021, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $512,500 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger. During the two years following the acquisition, Sellinger reported the following net income and dividends: 2020 2021 Net income $ 505,000 $ 626,000 Dividends declared 170,000 200,000 Show Palka’s journal entry to record its January 1, 2021, acquisition of an additional…
- On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for $657,000 cash. The acquisition-date fair value of the noncontrolling interest was $73,000. At January 1, 2019, Star's net assets had a total carrying amount of $512,000. Equipment (eight-year remaining life) was undervalued on Star's financial records by $49,600. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $43,400 in 2019 and $49,600 in 2020. Each year since the acquisition, Star has declared a $12,400 dividend. At January 1, 2021, Pride's retained earnings show a $155,000 balance. Selected account balances for the two companies from their separate operations were as follows: Pride 2021 Revenues $ 308,800 2021 Expenses 217,000 What is consolidated net income for 2021? Multiple Choice $147,600. O $119,900. $99,300. Star $ 176,700 120,900…On January 3, 2021, Matteson Corporation acquired 30 percent of the outstanding common stock of O'Toole Company for $1,462, 000. This acquisition gave Matteson the ability to exercise significant influence over the investee. The book value of the acquired shares was $859, 000. Any excess cost over the underlying book value was assigned to a copyright that was undervalued on its balance sheet. This copyright has a remaining useful life of 10 years. For the year ended December 31, 2021, O'Toole reported net income of $350, 000 and declared cash dividends of $45, 000. On December 31, 2021, what should Matteson report as its investment in O'Toole under the equity method?Renz Co. acquired 80% of the voting common stock of Sogers Corp. on January 1, 2022. During 2022, Sogers had revenues of $2,700,000 and expenses of $2,100,000. The amortization of fair value allocations totaled $65,000 in 2022. Not including its investment in Sogers, Renz Co. had its own revenues of $4,800,000 and expenses of $3,600,000 for the year 2022. What amount of consolidated net income for 2022 should be allocated to Renz’s controlling interest in Sogers?
- On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,222,900 in cash. The price paid was proportionate to Sellinger’s total fair value, although at the acquisition date, Sellinger had a total book value of $1,470,000. All assets acquired and liabilities assumed had fair values equal to book values except for a patent (six-year remaining life) that was undervalued on Sellinger’s accounting records by $267,000. On January 1, 2021, Palka acquired an additional 25 percent common stock equity interest in Sellinger Company for $467,500 in cash. On its internal records, Palka uses the equity method to account for its shares of Sellinger. During the two years following the acquisition, Sellinger reported the following net income and dividends: 2020 2021 Net income $ 477,500 $ 592,500 Dividends declared 150,000 190,000 Show Palka’s journal entry to record its January 1, 2021, acquisition of an additional 25…During 2020, Peerless Company’s wholly-owned subsidiary, Safeco Inc. reported net income of $1,600,000 and declared and paid dividends of $600,000. Peerless acquired Safeco on January 2, 2020, at a cash cost of $8,000,000, which was $1,000,000 in excess of the book value of net assets acquired. Safeco’s equipment (five-year life) was undervalued by $500,000. Its inventory, reported using FIFO, was undervalued by $200,000. The remaining $300,000 could not be allocated to identifiable assets and liabilities. Impairment testing indicates that goodwill was impaired by $50,000 during 2020. Safeco’s beginning inventory was sold during 2020. Required: Prepare the journal entries recorded by Peerless in 2020 to record the acquisition and apply the complete equity method. Prepare the necessary eliminating entries to consolidate the financial statements of Peerless and Safeco at December 31, 2020.Following are selected account balances from Peregrine Company and Sprano Corporation as of December 31, 2021: On January 1, 2021, Peregrine acquired all of Sprano’s outstanding stock for $680,000 fair value in cash and common stock. At the date of acquisition, copyrights (with a 6-year remaining life) were undervalued by $120,000 (i.e., market value was higher than book value). Peregrine applies the equity method to maintain the Investment in Sprano account. For the year ending December 31, 2021 determined the total Equity Income in Sprano reported in Peregrine’s book.
- On January 1, 2022, Green Corporation purchased 25% of the outstanding voting common stock of Gold Company for $500,000. The book value of Gold Company as a whole was $1,700,000. The excess of cost over book value is attributable to a license (intangible asset) to be amortized over fifteen years. For the year ended December 31, 2022, Gold reported net income of $300,000 and paid cash dividends of $12,000. What is the carrying value of Green's investment in Gold at December 31, 2022? O $417,000. O $567,000. O $572,000. O $550,000.On January 1, 2019, Uncle Company purchased 80 percent of Nephew Company's capital stock for $584,000 in cash and other assets. Nephew had a book value of $700,000, and the 20 percent noncontrolling interest fair value was $146,000 on that date. On January 1, 2021, Nephew had acquired 30 percent of Uncle for $354,250. Uncle's appropriately adjusted book value as of that date was $1,147,500. Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Nephew distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period. Year UncleCompany Nephew Company 2019 $ 164,000 $ 35,200 2020 186,000 56,000 2021 216,000 64,400 Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's…On January 1, 2019, Nakhon Company acquired 80% of Pathom Company's common stock for $28,000 cash. At that date, Pathom reported common stock outstanding of 20,000 and retained earnings of 10,000 and the fair value of Pathom's assets and liabilities were equal, except for other intangible assets, which has a fair value 5,000 greater than book value and an 8- year remaining life. Pathom reported the following data for 2019 and 2020: Year Net Income Comprehensive Income Dividends Paid 2019 2,500 3,000 500 2020 3,500 4,500 1,000 Nakhon reported separate net income from own operations of 10,000 and paid dividends of 3,000 for both years. What is the amount of comprehensive attributable to the controlling interest in 2020?
