Company P purchases an 80% interest in Company S on January 1, 2011, for $480,000. Company S had equity of $450,000 on that date. Any excess of cost over book value was attributed to equipment with a 10-year life. On July 1, 2016, Company P purchased another 10% interest for $160,000. Company S’s equity was $550,000 on January 1, 2016, and it earned $50,000 evenly during 2016. Company P had internally generated net income of $120,000 during 2016. Calculate consoli0dated income for 2016 and the distribution of consolidated income to the non-controlling and controlling interests.
Answer to relevant QuestionsCompany P purchased an 80% interest (8,000 shares) in Company S for $800,000 on January 1, 2011. Company S’s equity on that date was $900,000. Any excess of cost over book value was attributed to equipment with a 10-year ...Carpenter Company has the following balance sheet on December 31, 2015: The investment in Hinckley Company account reflects the original cost of an 80% interest (40,000 shares) purchased on January 1, 2012. On the date of ...On January 1, 2011, Press Company acquires 90% of the common stock of Soap Company for $324,000. On this date, Soap has total owners’ equity of $270,000, including retained earnings of $100,000. On January 1, 2011, any ...The December 31, 2019, post-closing trial balances of Marley Corporation and its subsidiary, Foster Corporation, are as follows: The following additional information is available: a. Marley initially acquires 60% of the ...On January 1, 2011, Artic Company acquires an 80% interest in Calco Company for $400,000. On the acquisition date, Calco Company has the following stockholders’ equity: Common stock ($10 par) ......... $200,000 Paid-in ...
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