Identify the figures which would appear in a consolidated income statement for this year.

Question

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Answer 1

Question

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $426,750 − $38,025= $388,725 (10)

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Answer 2

Question

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $426,750 − $38,025= $388,725 (10)

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Answer 3

Question

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $426,750 − $38,025= $388,725 (10)

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Answer 4

Question

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $426,750 − $38,025= $388,725 (10)

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Answer 5

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $426,750 − $38,025= $388,725 (10)

Answer 6

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

Answer 7

Chapter 4, Problem 26P

a.

To determine

Identify the figures which would appear in a consolidated income statement for this year.

Answer 8

a.

Expert Solution

Explanation of Solution

Figures which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,500,000 (1)
Consolidated expenses	$(1,031,000) (2)
Consolidated net income	$ 469,000 (3)
Balance of non-controlling interest in Company S	$ (50,700) (4)
Balance of Controlling interest in Company S	$ 418,300 (5)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,000= $1,500,000 (1)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 + Amortization of building + Amortization of patent= $1,000,000 + $330,000 − $300,00010 + $140,0005= $1,031,000 (2)

Computation of consolidated net income:

Consolidated net income = $1,500,000 − $1,031,000= $469,000 (3)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($600,000 −$400,000 − $31,000) × 30%= $50,700 (4)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $469,000 − $50,700= $418,300 (5)

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)

Computation of amount of net income of allocated to controlling interest:

Net income for controlling interest= $426,750 − $38,025= $388,725 (10)

Answer 13

b.

To determine

Identify the amounts which would appear in a consolidated income statement for this year.

Answer 14

b.

Expert Solution

Explanation of Solution

Amounts which would appear in a consolidated income statement for this year:

Particulars	Amount
Consolidated revenues	$ 1,350,000 (6)
Consolidated expenses	$ (923,250) (7)
Consolidated net income	$ 426,750 (8)
Balance of non-controlling interest in Company S	$ (38,025) (9)
Balance of Controlling interest in Company S	$ 388,725 (10)

Table: (1)

Working note:

Computation of consolidated revenues:

Consolidated revenues = $900,000 + $600,00012 × 9= $1,350,000 (6)

Computation of consolidated expenses:

Consolidated expenses = $600,000 + $400,000 12 × 9+ (Amortization of building12× 9) + (Amortization of patent12 × 9)= $900,000 + ($330,000 − $300,00010 ×12 ×9) + ($140,0005 ×12 ×9)= $923,250 (7)

Computation of consolidated net income:

Consolidated net income = $1,350,000 − $923,250= $426,750 (8)

Computation of amount of net income of Company S allocated to non-controlling interest:

Net income for non-controlling interest = (Revenue of Company S − Expenses of Company S − Amortization expenses)= ($450,000 −$300,000 − $23,250) × 30%= $38,025 (9)