Pen Corporation owns 80 percent of San Corporation's common stock, having acquired the interest at a fair
Question:
The stockholders' equity of San consists of the following (in thousands):
December 31, 2011 December 31, 2012
12% cumulative preferred stock, $100 par,
callable at $105 per share ............................. $2,000 ............................... $2,000
Common stock, $10 par ................................ 4,000 ................................. 4,000
Other paid-in capital ...................................... 600 .................................... 600
Retained earnings ....................................... 1,400 ................................. 1,800
Total stockholders' equity ............................ $8,000 ............................... $8,400
REQUIRED
1. Determine the cost of Pen's investment in San on December 31, 2011, if San has one year's preferred dividends in arrears on that date.
2. Calculate Pen's net income and noncontrolling interest share for 2012.
3. Calculate the underlying book value of Pen's investment in San on December 31, 2012.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Advanced Accounting
ISBN: 978-0133451863
12th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
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