Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 7, Problem 8P
To determine
Identify the appropriate answer for the given statement from the given choices.
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based on the information in the picture, In the consolidated statement of comprehensive income for the year ended December 31, 2021, how much is the consolidated net income attributable to the controlling interest?
a. 1,980,000
b. 1,860,000
c. 1,830,000
d. 1,760,000
Arnold Corporation holds 70 percent of Belvista, which, in turn, owns 70 percent of Stang. Separate operating income figures (excluding investment income) and intra-entity upstream gains (on assets remaining within the consolidated group) included in the income for the current year follow:
Arnold
Belvista
Stang
Seperate operating income
$625000
$305000
$240000
Intra-entity gains
-0-
18000
50000
What is the amount of consolidated net income attributable to the noncontrolling interests? Choose the correct.a. $143,100b. $163,500c. $183,000d. $213,900
On January 1, 2024, Presidio Company acquired 100 percent of the outstanding common stock of Mason Company. To acquire these
shares, Presidio issued to the owners of Mason $310,000 in long-term liabilities and 20,000 shares of common stock having a par
value of $1 per share but a fair value of $10 per share. Presidio paid $30,500 to accountants, lawyers, and brokers for assistance in the
acquisition and another $15,000 in connection with stock issuance costs.
Prior to these transactions, the balance sheets for the two companies were as follows:
Items
Presidio
Company
Cash
Receivables
Inventory
Land
Buildings (net)
Equipment (net)
Accounts payable
Long-term liabilities
Common stock-$1 par value
Common stock-$20 par value
Additional paid-in capital
Retained earnings, 1/1/24
Mason Company
$ 85,800
$ 39,600
361,000
189,000
362,000
211,000
269,000
185,000
425,000
276,000
217,000
52,200
(214,000)
(66,300)
(488,000)
(310,000)
(110,000)
Ө
Ө
(120,000)
(360,000)
(547,800)
Ө
(456,500)
Note:…
Chapter 7 Solutions
Advanced Accounting
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - Prob. 15PCh. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Prob. 20PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 26P
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- In the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported income: A. After adding intercompany gain considered realized in that period. B. After adding the intercompany gain on sales C. After deducting the intercompany gain on sales D. After deducting intercompany gain considered realized in that period.arrow_forwardPlease help me. Thankyou.arrow_forwardIn years subsequent to the year a 90% owned subsidiary sells equipment to its parent company at a gain, the non-controlling interest is consolidated income is computed by multiplying the non-controlling interest percentage by the subsidiary’s reported net income: A. Minus the net amount of unrealized gain on the intercompany sale B. Plus intercompany gain considered realized in the current period. C. Plus the net amount of unrealized gain on the intercompany sales D. Minus intercompany gain considered realized in the current periodarrow_forward
- 1. At what amount will the gain on sale of building appear on the consolidated/group income statement of Power and Speed for the year 2019 should be: 2. The consolidated depreciation expense for 2019 should bearrow_forwardIn the year an 80% owned subsidiary sells equipment to its parent company at a gain, the non-controlling interest in consolidated income is calculated by multiplying the non-controlling interest percentage by the subsidiary’s reported net income A. Plus the net amount of unrealized gain on the intercompany sale B. Plus the intercompany gain considered realized the current period C. Minus the intercompany gain considered realized in the current period. D. Minus the net amount of unrealized gain on the intercompany salesarrow_forward1. What is the Consolidated Net Income for 2020? 2. What is the Consolidated Net Income for 2021?arrow_forward
- 1. The profit attributable to equity holders of Power for 2019 is 2. The consolidated Net income for 2019 should bearrow_forwardSelected information from the separate and consolidated income statements of CHAELISA LTD.and as subsidiary, JENSOO INC. for the year ended December 31, 2021 are as follows: CHAELISA LTD. JENSOOINC. ConsolidatedSales P600,000 P420,000 P924,000COGS 450,000 330,000 693,000Gross profit P150,000 P 90,000 P231,000 During 2021, CHAELISA LTD. sold goods to JENSOO INC. at the same mark-up on cost that CHAELISA LTD. uses for all sales. At December 31, 2021, JENSOO INC. had not paid all of these goods and still held 37.5% of them in inventory. Compute for the original cost of goods in JENSOO INC.’s inventory acquired from Apple.arrow_forward1.The Consolidated Retained Earnings, December 31, 20x4.2. The Consolidated sales for 20x4.3. The Consolidated cost of sales for 20x4.arrow_forward
- Compute for the amount to be shown as consolidated net income. Include upstream and downstream if there is.arrow_forwardREQUIRED 1. Prepare a consolidated balance sheet for Pen Corporation and Subsidiary at December 31, 2011. 2. Compute consolidated net income for 2012 assuming that Pen Corporation reported separate income of $680,000 and Sut Company reported net income of $360,000. (Separate incomes do not include income from the investment in Sut.)arrow_forwardWhat is the non-controlling Interest in Net Income for the year 20x6? The Non-controlling Interest in Net Assets of Subsidiary for 20x6 should be?arrow_forward
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