Q4: A parent company of a 60%-owned subsidiary uses the cost method. At the end of...
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Q4: A parent company of a 60%-owned subsidiary uses the cost method. At the end of 2001, the parent made the following consol- Idation entry, among others: The NCI entry: Common Stock. Additional Paid-in Capital. Retained Earnings, 1/1/01 NCI in Net Income Dividends Declared NCI in Net Assets...... 4,000 200,000 30,000 (22,000 ......... .... ..... 16,000 240,000 ..... ..... The parent also declared and paid dividends of $800,000 in 2001. uired What is the amount for each of the following items? a. The subsidiary's retained earnings balance at 12/31/01. b. The subsidiary's total equity at 12/31/01. c. The parent's year-end investment balance under the cost method. d. The parent's year-end investment balance under the equity method. e. The dividends declared by the subsidiary in 2001. f. The amount reported for dividends declared in the 2001 consolidated statement of re- tained earnings. (18 marks) Q4: A parent company of a 60%-owned subsidiary uses the cost method. At the end of 2001, the parent made the following consol- Idation entry, among others: The NCI entry: Common Stock. Additional Paid-in Capital. Retained Earnings, 1/1/01 NCI in Net Income Dividends Declared NCI in Net Assets...... 4,000 200,000 30,000 (22,000 ......... .... ..... 16,000 240,000 ..... ..... The parent also declared and paid dividends of $800,000 in 2001. uired What is the amount for each of the following items? a. The subsidiary's retained earnings balance at 12/31/01. b. The subsidiary's total equity at 12/31/01. c. The parent's year-end investment balance under the cost method. d. The parent's year-end investment balance under the equity method. e. The dividends declared by the subsidiary in 2001. f. The amount reported for dividends declared in the 2001 consolidated statement of re- tained earnings. (18 marks)
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A Ref Details Amount Remarks A Share in Opening Retained Earning of NCI 40 30000 B Full opening bala... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
Posted Date:
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