1/1/18 Parent pays $426,000 for a 70 percent ownership in the Sub. Excess fair value amortization...

 

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1/1/18 Parent pays $426,000 for a 70 percent ownership in the Sub. Excess fair value amortization of $5,500 occurs annually due to acquisition. One 12/31/19, the Sub reports revenues of $500,000 and expenses of $300,000. Parent reports revenues and expenses of $950,000 and $325,000, respectively, for the same period. The parent figures do not include any of the income from the subsidiary. Calculate the consolidated net income attributed to the Parent for the FYE 12/31/19? 1/1/18 Parent pays $426,000 for a 70 percent ownership in the Sub. Excess fair value amortization of $5,500 occurs annually due to acquisition. One 12/31/19, the Sub reports revenues of $500,000 and expenses of $300,000. Parent reports revenues and expenses of $950,000 and $325,000, respectively, for the same period. The parent figures do not include any of the income from the subsidiary. Calculate the consolidated net income attributed to the Parent for the FYE 12/31/19?

Answer rating: 100% (QA)

Parent Sub Revenue 1 950000 500000 Expe... View the full answer