Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 6, Problem 33P
a.
To determine
Find the non-controlling interest’s share of consolidated net income for this period.
b.
To determine
Find the balance in the Investment in Company S account as of December 31, 2018.
c.
To determine
Identify the consolidation entries which are needed for 2018.
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Smith, Inc., has the following stockholders’ equity accounts as of January 1, 2018:
Preferred stock—$140 par, nonvoting and nonparticipating, 7% cumulative dividend
$
2,170,000
Common stock—$25 par value
4,170,000
Retained earnings
10,170,000
Haried Company purchases all of Smith's common stock on January 1, 2018, for $14,400,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 30-year remaining life.
During 2018, Smith reports earning $620,000 in net income and declares $530,000 in cash dividends. Haried applies the equity method to this investment.
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, 2018?
What consolidation entries are needed for 2018?
Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021:
Preferred stock-$100 par, nonvoting and
nonparticipating, 8% cumulative dividend
Common stock-$20 par value
Retained earnings
$ 2,000,000
4,000,000
10,000,000
Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,040,000. 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 $450,000 in net income and declares $360,000 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?
Smith, Incorporated, has the following stockholders' equity accounts as of January 1, 2024:
Preferred stock-$100 par, nonvoting and nonparticipating, 8% cumulative dividend
Common stock-$20 par value
Retained earnings
$ 2,200,000
4,200,000
10,200,000
Haried Company purchases all of Smith's common stock on January 1, 2024, for $14,430,000. The preferred stock remains in the
hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 30-year remaining life.
Required:
During 2024, Smith reports earning $650,000 in net income and declares $560,000 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, 2024?
c. What consolidation entries are needed for 2024?
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Chapter 6 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 6 - Prob. 1QCh. 6 - Prob. 2QCh. 6 - When is a firm required to consolidate the...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - How do noncontrolling interest balances affect the...Ch. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Problems 7 and 8 are based on the following...Ch. 6 - Prob. 8PCh. 6 - Bens man Corporation is computing EPS. One of its...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - On January 1, Coldwater Company has a net book...Ch. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - On January 1, 2018, Stamford issues 10,000...Ch. 6 - On January 1, 2018, Stamford reacquires 8,000 of...Ch. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - On December 31, 2017. PanTech Company invests...Ch. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Alford Company and its 80 percentowned subsidiary,...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Fred, Inc., and Herman Corporation formed a...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 1DYSCh. 6 - Prob. 2DYSCh. 6 - The FASB ASC Subtopic Variable Interest Entities...
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