Broadmore Corporation acquired 75 percent of Stem Corporation’s common stock on January 1, 20X8, for $435,000. At that date, Stem reported common stock outstanding of $300,000 and retained earnings of $200,000, and the fair value of the noncontrolling interest was $145,000. The book values and fair values of Stem’s assets and liabilities were equal, except for other intangible assets, which had a fair value $80,000 more than book value and a 10-year remaining life. Broadmore and Stem reported the following data for 20X8 and 20X9:

a. Compute consolidated comprehensive income for 20X8 and 20X9.
b. Compute comprehensive income attributable to the controlling interest for 20X8 and 20X9.
c. Assuming that Broadmore reported capital stock outstanding of $320,000 and retained earnings of $430,000 at January 1, 20X8, prepare the stockholders’ equity section of the consolidated balance sheet at December 31, 20X8 and20X9.

  • CreatedMay 23, 2014
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