On January 1, 2019 Annick Co. acquired 60% of Noah Inc. by paying $650,000. The fair...
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On January 1, 2019 Annick Co. acquired 60% of Noah Inc. by paying $650,000. The fair value of noncontrolling interest was $400,000. Noah reported common stock on that date of $420,000 with retained earnings of $250,000. A building was undervalued on Noah's financial records by $28,000. This building had a ten-year remaining life. Unrecorded copyrights with fair values of $72,000 were to be recognized and amortized over 20 years. Noah earned income and paid cash dividends as follows: 2019 2020 Net income $105,000 134,400 Dividends paid $45,600 61,600 A.) Determine how much goodwill that would be allocated between the controlling and non- controlling interest. B.) What is the ending balance of the non-controlling interest in the subsidiary at December 31, 2019? C.) What is the consolidated balance of the building's account at December 31, 2019 On January 1, 2019 Annick Co. acquired 60% of Noah Inc. by paying $650,000. The fair value of noncontrolling interest was $400,000. Noah reported common stock on that date of $420,000 with retained earnings of $250,000. A building was undervalued on Noah's financial records by $28,000. This building had a ten-year remaining life. Unrecorded copyrights with fair values of $72,000 were to be recognized and amortized over 20 years. Noah earned income and paid cash dividends as follows: 2019 2020 Net income $105,000 134,400 Dividends paid $45,600 61,600 A.) Determine how much goodwill that would be allocated between the controlling and non- controlling interest. B.) What is the ending balance of the non-controlling interest in the subsidiary at December 31, 2019? C.) What is the consolidated balance of the building's account at December 31, 2019
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Answer rating: 100% (QA)
A To determine the goodwill allocated between the controlling and noncontrolling interest we need to calculate the excess of the consideration transfe... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
Posted Date:
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