Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest. the S’s contribution to consolidated net income for 20X2.

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Answer 1

Question

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

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On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24.Following are the data for the following year (Year 2).Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50.Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share.Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 a. Prepare the entry for Drucker Company to record the purchase of the securities.b. Prepare any adjusting entry needed at December 31, Year 1.Note: If a journal entry isn't required for the transaction, select "N/A—Debit" and "N/A—Credit" as the…

On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV‑NI. Kelly Corporation 800 shares of common stock (no-par) at $60 per share Keefe Corporation 480 shares preferred stock ($10 par) at $20 per share On December 31, the company’s year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24.Following are the data for the following year (Year 2).Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50.Oct. 01: Sold 160 shares of Keefe Corporation preferred stock at $25 per share.Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 xx d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the Fair Value Adjustment account needs to be adjusted for the investment portfolio on December 31, Year 2.

On November 1 of Year 1, Drucker Co. acquired the following investments in equity securities measured at FV-NI. Kelly Corporation 400 shares of common stock (no-par) at $60 per share Keefe Corporation 240 shares preferred stock ($10 par) at $20 per share On December 31, the company's year-end, the quoted market prices were as follows: Kelly Corporation common stock, $52, and Keefe Corporation preferred stock, $24. Following are the data for the following year (Year 2). Mar. 02: Dividends per share, declared and paid: Kelly Corp., $1, and Keefe Corp., $0.50. Oct. 01: Sold 80 shares of Keefe Corporation preferred stock at $25 per share. Dec. 31: Fair values: Kelly common, $46 per share, Keefe preferred, $26 per share. Year 1 Year 2 d. Prepare the entries required in Year 2 to record dividend revenue, the sale of stock, and the fair value adjustment. Assume that the Fair Value Adjustment account needs to be adjusted for the investment portfolio on December 31, Year 2. Date Mar. 2, Year 2…

Answer 2

Question

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

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Answer 3

Question

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

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Answer 4

Question

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

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Answer 5

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

Answer 6

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

Answer 7

Chapter 9, Problem 9.7E

a

To determine

Preferred dividendsare the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the S’s contribution to consolidated net income for 20X2.

Answer 8

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

Answer 9

b

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the income assigned to non-controlling interest for 20X2.

Answer 10

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

Answer 11

c

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the portion of S’s retained earnings assigned to its preferred stock on January 1, 20X2.

Answer 12

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

Answer 13

d

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the computation of book value assigned to common shareholders on January 1, 20X2.

Answer 14

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

Answer 15

e

To determine

Preferred dividends are the dividends paid on preferred stock, although consolidated net income is unaffected by preferred dividends. The amount allocated to the controlling interest is affected because the income allocated to the non-controlling interest is deducted to calculate controlling interest.

the amount to be reported as non-controlling interest in the year January 1,20X2.

Answer 16

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Answer 17

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Answer 18

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Answer 19

Ch. 9 - Prob. 9.1Q Ch. 9 - Prob. 9.2Q Ch. 9 - Prob. 9.3Q Ch. 9 - Prob. 9.4Q Ch. 9 - Prob. 9.5Q Ch. 9 - Prob. 9.6Q Ch. 9 - Prob. 9.7Q Ch. 9 - Prob. 9.8Q Ch. 9 - Prob. 9.9Q Ch. 9 - Prob. 9.10Q

Solution Summary: The author explains that the effect of purchase of preferred stock is eliminated and no dividends are paid during the year and retained earnings become the part of Investment in S common stock.

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Chapter 9 Solutions