Por Corporation acquired 80 percent of the outstanding stock of Sle Corporation for $1,120,000 cash on January
Question:
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):
ADDITIONAL INFORMATION
1. 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 $40,000.
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 share
2. Current assets
3. Income from Sle
4. Capital stock
5. Investment in Sle
6. Excess of investment fair value over book value
7. Consolidated net income for the year ended December 31, 2012
8. Consolidated retained earnings, December 31, 2011
9. Consolidated retained earnings, December 31, 2012
10. Noncontrolling interest, December 31, 2012
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...
Step by Step Answer:
Advanced Accounting
ISBN: 978-0133451863
12th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith