What is the effect on the noncontrolling share of consolidated income that results from the recording in the consolidated statements work paper of differences between book value and the value implied by the purchase price (and their allocation to depreciable property, good will, etc.)?
Answer to relevant QuestionsWhat is insider trading anyway? Consider the following:Many years ago, a student in a consolidated financial statements class came to me and said that Grand Central (a multi store grocery and variety chain in Salt Lake City ...Pace Company purchased 20,000 of the 25,000 shares of Saddler Corporation for $525,000. On January 3, 2011, the acquisition date, Saddler Corporation’s capital stock and retained earnings account balances were $500,000 and ...On January 2, 2010, Page Corporation acquired a 90% interest in Salcedo Company for $3,500,000. At that time Salcedo Company had capital stock of $2,250,000 and retained earnings of $1,250,000. The book values of Salcedo ...Management changed an accounting method. Several executives would have qualified for additional bonuses totaling $50,000 in the prior year under the new method. Can the firm restate the previous year’s income statement to ...On January 1, 2011, Palmer Company acquired a 90% interest in Stevens Company at a cost of $1,000,000. At the purchase date, Stevens Company’s stockholders’ equity consisted of the following:Common ...
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