1. Justin acquires 90% of the voting common shares of Stevens on January 1, 2010. In...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Justin acquires 90% of the voting common shares of Stevens on January 1, 2010. In 2010, Justin pays dividends of $350,000 and Stevens pays dividends of $25,000. a. How much is the noncontrolling interest in subsidary dividends. b. How much is consolidated dividends c. Prepare worksheet entry D for this situation. 2. Roland acquires 70% of Felix on January 1, 2011. The terms of purchase is that Roland pays to Felix shareholders 70,000 shares of Roland common stock with a market value of $20 per share. The remaining 30,000 shares of Felix were traded at $15 both just before the acquisition date and right after the acquisition date. a. How much is the control premium per share b. How much is the total control premium paid by Roland c. Calculate business fair value d. Assume that 100% of the fair value of net assets acquired was $1,200,000. How much is goodwill e. How much goodwill is allocated to the controlling interest f. How much goodwill is allocated to the noncontrolling interest 3. Tall acquires 80% of Short on May 1, 2010. For the first 4 months of 2010, Short has total revenues of $1,000,000 and total expenses of $600,000. For the last 8 months of the year Short has total revenues of $1,800,000 and total expenses of $800,000. a. How much is the noncontrolling interest in Short net income in 2010 b. How much subsidiary net income is allocated to the controlling interest 4. a. Thompson owns 100% of Rollins and at December 31, 2012, its Investment in Rollins account stands at $10,000,000. On that date Thompson sells 20% of its ownership for $2,500,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. b. Same facts as above, except the sales price is $1,000,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. 5. a. Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at $6,000,000. On that date Big sells half its ownership for $4,000,000 cash. Prepare the journal entry to be recorded by Big on December 31. 2012. c. Same facts as above, except the sales price is $2,500,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012. 1. Justin acquires 90% of the voting common shares of Stevens on January 1, 2010. In 2010, Justin pays dividends of $350,000 and Stevens pays dividends of $25,000. a. How much is the noncontrolling interest in subsidary dividends. b. How much is consolidated dividends c. Prepare worksheet entry D for this situation. 2. Roland acquires 70% of Felix on January 1, 2011. The terms of purchase is that Roland pays to Felix shareholders 70,000 shares of Roland common stock with a market value of $20 per share. The remaining 30,000 shares of Felix were traded at $15 both just before the acquisition date and right after the acquisition date. a. How much is the control premium per share b. How much is the total control premium paid by Roland c. Calculate business fair value d. Assume that 100% of the fair value of net assets acquired was $1,200,000. How much is goodwill e. How much goodwill is allocated to the controlling interest f. How much goodwill is allocated to the noncontrolling interest 3. Tall acquires 80% of Short on May 1, 2010. For the first 4 months of 2010, Short has total revenues of $1,000,000 and total expenses of $600,000. For the last 8 months of the year Short has total revenues of $1,800,000 and total expenses of $800,000. a. How much is the noncontrolling interest in Short net income in 2010 b. How much subsidiary net income is allocated to the controlling interest 4. a. Thompson owns 100% of Rollins and at December 31, 2012, its Investment in Rollins account stands at $10,000,000. On that date Thompson sells 20% of its ownership for $2,500,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. b. Same facts as above, except the sales price is $1,000,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. 5. a. Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at $6,000,000. On that date Big sells half its ownership for $4,000,000 cash. Prepare the journal entry to be recorded by Big on December 31. 2012. c. Same facts as above, except the sales price is $2,500,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012.
Expert Answer:
Answer rating: 100% (QA)
1 Justin acquires 90 of the voting common shares of Stevens on January 1 2010 a How much is the noncontrolling interest in subsidiary dividends Noncontrolling interest in subsidiary dividends0125000 N... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0133451863
12th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
Students also viewed these accounting questions
-
A company has the following data to prepare the budgets for 2023: Budgeted Sales units: 1 st Qtr 5,000; 2 nd Qtr 5,500; 3 rd Qtr 6,000 Desired Ending Finished Goods Inventory: 20% of next Qtr Sales...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
On January 1, 2004, Par Corporation acquired 60 percent of the voting common shares of Sue Corporation at an excess of fair value over book value of $1,000,000. This excess was attributed to plant...
-
Data from the registrar's office at Gigantic State University indicate that over the past 20 years tuition and enrollment have both increased. From this information we can conclude that: A. higher...
-
Willow Enterprises is considering the acquisition of Steadfast Corp. in a stock swap transaction. Currently, Willows stock is selling for $45 per share. Although Steadfasts shares are currently...
-
Two very small, coherent sources are separated by \(d=2 \lambda\), where \(\lambda\) is the wavelength of the circular waves created by each source. (a) Use Huygens' principle to construct a dozen...
-
Discuss why a patients responsibilities are as important as his or her rights.
-
A shop works a 400- minute day. The manager of the shop wants an output of 200 units per day for the assembly line that has the elemental tasks shown in the table. Do the following: a. Construct the...
-
Image transcription text CCNY engineering intern design challenge: Summer 2023 Justify ALL equations/tables/charts/data used and show calculations Midterm: DUE THIS WED AT 11PM ON BB: July 26th 2 for...
-
Using a linear programming framework and the data from case Exhibit 1, formulate and solve the problem of finding the cost-minimizing set of bids that meet Mars' business requirements and determines...
-
The magnetic field component of a uniform plane wave in air is given by H(x) = 2120x [ye-/4-2/4] mA - m where a is a real constant. a. Find the wavelength A and frequency f. b. Determine the type...
-
What habits or patterns of spending did you discover that you were not previously aware of, such as being surprised at how much you spent on a specific item or category? Were you honest with...
-
How do ethical considerations shape the decisiveness of leaders in navigating moral dilemmas and balancing competing values, particularly in contexts where decisions have far-reaching consequences...
-
Your shares in Tesla are taking a bath today, and the outlook isn't good. To lower your already aggressive risk profile, you decide to sell all your shares. To guarantee order execution, what type of...
-
The standard deviation of a portfolio can only be reduced to the level of the risk-free asset in the portfolio. Essentially in any portfolio of investments, the standard deviation can only be reduced...
-
How do cross-cultural differences in trust perceptions and expectations shape interpersonal dynamics, negotiation strategies, and business practices in a globalized world, and how can individuals and...
-
Assume that the S&P 500 currently has a dividend yield of 3% and that on average, the dividends of S&P firms have increased by about 5% per year. If the risk-free interest rate is 2%, then your...
-
Discrete sample spaces: suppose there are N cable cars in San Francisco, numbered sequentially from 1 to N. You see a cable car at random; it is numbered 203. You wish to estimate N. (See Goodman,...
-
Health care entities frequently provide charity care to qualified individuals. How is charity care reported in the financial statements of a hospital?
-
Tom Josephson dies on May 16, 2013, leaving a valid will. The will reads as follows: I leave my automobile to my niece, Pat. I leave my stock investment accounts to my niece, Sue. I leave income on...
-
The affiliation structure for Place Corporation and its affiliates is as follows: During 2011 the separate incomes of the affiliates were as follows: Place ............................. $400,000 Lake...
-
The primary problem with the hypothesis that life on Earth originated on Mars is that (a) Mars has never had water. (b) the proposed Martian fossils are much smaller than the tiniest bacteria on...
-
Which of these statements regarding the origin of life is false? (a) Life originated on an Earth whose atmosphere contained high levels of oxygen. (b)Miller and Urey obtained amino acids and other...
-
Which of the following mechanisms of evolution consistently causes populations to become more adapted to their environments? (a) natural selection (b)mutation pressure (c) genetic drift (d) gene flow
Study smarter with the SolutionInn App