Ambrose Corporation owns 75 percent of Kroop Company's common stock, acquired at underlying book value on January
Question:
Ambrose uses the cost method in accounting for its ownership of Kroop. Kroop paid dividends of $12,000 in 20X4.
Required
a. What amount should Ambrose report in its income statement as income from its investment in Kroop using equity-method accounting?
b. What amount of income should be assigned to noncontrolling interest in the consolidated income statement for 20X4?
c. What amount should Ambrose report as consolidated net income for 20X4?
d. Why should Ambrose not report consolidated net income of $79,000 ($59,000 + $20,000) for20X4?
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
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Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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