Por Corporation acquired 80 percent of the outstanding stock of Sle Corporation for $560,000 cash on January

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Por Corporation acquired 80 percent of the outstanding stock of Sle Corporation for $560,000 cash on January 3, 2011, on which date Sle's stockholders' equity consisted of capital stock of $400,000 and retained earnings of $100,000. There were no changes in the outstanding stock of either corporation during 2011 and 2012. At December 31, 2012, the adjusted trial balances of Por and Sle are as follows (in thousands):

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ADDITIONAL INFORMATION1. All of Sle's assets and liabilities were recorded at fair values equal to book values on January 3, 2011.2. The current liabilities of Sle at December 31, 2012, include dividends payable of $20,000.REQUIRED: Determine the amounts that should appear in the consolidated statements of Por Corporation and Subsidiary at December 31, 2012, for each of the following:1. Noncontrolling interest share2. Current assets3. Income from Sle4. Capital stock5. Investment in Sle6. Excess of investment fair value over book value7. Consolidated net income for the year ended December 31, 20128. Consolidated retained earnings, December 31, 20119. Consolidated retained earnings, December 31, 201210. Noncontrolling interest, 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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Advanced Accounting

ISBN: 9780132568968

11th Edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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