![radusevciuc7719](/avatars/26809.jpg)
radusevciuc7719
26.01.2021 •
Business
Royce Co. acquired 60% of Park Co. for $420,000 on December 31, 2019 when Park's book value was $560,000. The Royce stock was not actively traded. On the date of acquisition, Park had equipment (with a ten-year life) that was undervalued in the financial records by $140,000.
One year later, the following selected figures were reported by the two companies.Additionally, no dividends have been paid.
Rovce Co. Park Co.
Book Value Book Value Fair Value
Current assets 868,000 420,000 448,000
Equipment 364,000 280,000 400,000
Buildings 574,000 210,000 210,000
Liabilities (546,000) (168,000) (168,000)
Revenues (1,260,000) (560,000)
Expenses 700,000 420,000
Investment income Not Given
1. What is consolidated net income for 2011 atributable to Royce's controlling interest?
2. What is the noncontrolling interest's share of the subsidiary's net income for the year ended December 31 2011 and what is the ending balance of the noncontrolling interest in the subsidiary at December 31, 2011?
Solved
Show answers
More tips
- C Computers and Internet How to Delete a Page on VKontakte: The Ultimate Guide from Experts...
- S Style and Beauty 5 Tips for Choosing the Best Ugg Boots...
- H Health and Medicine How to Treat the Flu: A Comprehensive Guide...
- H Health and Medicine Effective Ways to Treat Colic in Infants...
- C Computers and Internet IMHO: What is it, why is it important, and how to use it?...
- F Food and Cooking How to Calculate the Gender of Your Child with Blood?...
- S Style and Beauty How to Get Rid of Under Eye Bruises?...
- C Cities and Countries What time does the Metro open in Moscow?...
- W Work and Career Where can you learn to be a flight attendant?...
- H Health and Medicine What are Electronic Cigarettes? The Ultimate Guide...
Answers on questions: Business
- A Advanced Placement (AP) The lifespans of gorillas in a particular zoo are normally distributed. The average gorilla lives 16 years; the standard deviation is 1.7 years. Use the empirical...
- M Mathematics Algebra 2! An architect is designing a window with slanted interior bars. The crossbeam is perpendicular to the other four bars. What is the slope of the crossbeam?...
- M Mathematics What is the answer for: d/dx [(x)]...
- M Mathematics Why do we use variables, and what is the significance of using them in expressions and equations?...
Ответ:
1. Parent Income = Revenue - Expenses
Parent Income = $1260000 - $700000
Parent Income = $560000
Sub-Income = Revenue - Expenses
Sub-Income = 560000 - 420000
Sub-Income = 140000 * 60% ownership
Sub-Income = $84000
Excess Amortization = (140000 / 10) * (60%)
Excess Amortization = $8400
Consolidated Net Income = $560,000 + $84,000 - $8,400
Consolidated Net Income = $635,600
2. Sub-Income = Revenue - Expenses
Sub-Income = 560000 - 420000
Sub-Income = 140000 * 40% ownership
Sub-Income = $56000
Excess Amortization = (140000 / 10) * (40%)
Excess Amortization = $5600
Non Controlling Interest share = 56000 - 5600
Non Controlling Interest share = $50400
Non Controlling Interest at acquisition date = 700000 * 40%
Non Controlling Interest at acquisition date = $280000
Non Controlling Interest during 2015 = $56000
Excess Amortization = $5600
Balance of Interest = $280,000 + $56,000 - $5,600
Balance of Interest = $330,400
Ответ:
L
L
L
L
L
Explanation: