On January 1, 2013, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent

Question:

On January 1, 2013, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmorâ€™s shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the companyâ€™s financial records by $30,000. This patent had a 5-year remaining life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests. Bandmor earns net income and declares cash dividends as follows:

On December 31, 2015, Telconnect owes $22,000 to Bandmor.
a. If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2015?
b. If Telconnect has applied the initial value method, what Entry *C is needed for a 2015 consolidation?
c. If Telconnect has applied the partial equity method, what Entry *C is needed for a 2015 consolidation?
d. What noncontrolling interest balances will appear in consolidated financial statements for2015?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...