On January 1, 2013, Starling Corporation held an 80% interest in Twig Corporation and the investment account
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Question:
On January 1, 2013, Starling Corporation held an 80% interest in Twig Corporation and the investment account balance was $900,000. On January 1, 2013, Twig's total stockholders' equity was $1,125,000.
During 2013, Twig uniformly earned $234,000 and paid dividends of $37,500 on April 1 and again on October 1. On August 1, 2013, Starling sold 30% of its investment in Twig for $262,500, thereby reducing its interest in Twig to 56%.
Required:
Compute the following using the actual sales date assumption:
1. Gain or loss on sale.
2. Income from Twig for 2013.
3. Noncontrolling interest share for 2013
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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