The following comparative statements of stockholders equity are prepared for
The following comparative statements of stockholders’ equity are prepared for Nolan Corporation:
Tarman Corporation acquires 60% of Nolan Corporation common stock for $12 per share on January 1, 2011, when the latter corporation is formed. On January 1, 2013, Nolan Corporation purchases 5,000 shares of its own common stock from non-controlling interests for $15 per share. These shares are accounted for as treasury stock at cost.
Assuming Tarman Corporation uses the cost method to record its investment in Nolan Corporation, prepare the necessary cost-to-simple-equity conversion and the eliminations and adjustments required on the consolidated worksheet as of December 31, 2015. Include all pertinent supporting calculations in good form.
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