Exercise 4 5 Assessment Activity Week6 ACC 545 eCampus Ineedhelpwiththispartoftheassignment Determine the total noncontrolling interest that will be reported on the consolidated balance sheet on December 31, 2014 How does the noncontrolling interest differ between the cost method and the equity method EXERCISE4 5 EliminatingEntries,NoncontrollingInterest LO OnJanuary1,2014,PlateCompanypurchaseda90 interestinthecommonstockofSetCompanyfor$650,000,anamount$20,000inexcessofthebookvalueofequityacquired TheexcessrelatestotheunderstatementofSetCompany'slandholdings ExcerptsfromtheconsolidatedretainedearningssectionoftheconsolidatedstatementsworkpaperfortheyearendedDecember31,2014,follow SetCompany ConsolidatedBalances 1 1 14retainedearnings 190,000 880,000 Netincomefromabove 132,000 420,000 Dividendsdeclared (50,000) (88,000) 12 31 14retainedearningstothebalancesheet 272,000 1,212,000 SetCompany'sstockholders'equityiscomposedofcommonstockandretainedearningsonly Required PreparetheeliminatingentriesrequiredforthepreparationofaconsolidatedstatementsworkpaperonDecember31,2014,assumingtheuseofthecostmethod PreparetheeliminatingentriesrequiredforthepreparationofaconsolidatedstatementsworkpaperonDecember31,2014,assumingtheuseoftheequitymethod DeterminethetotalnoncontrollinginterestthatwillbereportedontheconsolidatedbalancesheetonDecember31,2014 Howdoesthenoncontrollinginterestdifferbetweenthecostmethodandtheequitymethod DeterminethetotalnoncontrollinginterestthatwillbereportedontheconsolidatedbalancesheetonDecember31,2014 Howdoesthenoncontrollinginterestdifferbetweenthecostmethodandtheequitymethod

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Question: Exercise 4-5 - Assessment Activity - Week6 - ACC/545 - eCampus Ineedhelpwiththispartoftheassignment: Determine the total noncontrolling interest that will be reported on the consolidated balance

Exercise 4-5 - Assessment Activity - Week6 - ACC/545 - eCampus

Ineedhelpwiththispartoftheassignment:
Determine the total noncontrolling interest that will be reported on the consolidated balance sheet on December 31, 2014. How does the noncontrolling interest differ between the cost method and the equity method?

EXERCISE4-5EliminatingEntries,NoncontrollingInterestLO

OnJanuary1,2014,PlateCompanypurchaseda90%interestinthecommonstockofSetCompanyfor$650,000,anamount$20,000inexcessofthebookvalueofequityacquired.TheexcessrelatestotheunderstatementofSetCompany'slandholdings.

ExcerptsfromtheconsolidatedretainedearningssectionoftheconsolidatedstatementsworkpaperfortheyearendedDecember31,2014,follow:

	SetCompany	ConsolidatedBalances
1/1/14retainedearnings	190,000	880,000
Netincomefromabove	132,000	420,000
Dividendsdeclared	(50,000)	(88,000)
12/31/14retainedearningstothebalancesheet	272,000	1,212,000

SetCompany'sstockholders'equityiscomposedofcommonstockandretainedearningsonly. Required:

PreparetheeliminatingentriesrequiredforthepreparationofaconsolidatedstatementsworkpaperonDecember31,2014,assumingtheuseofthecostmethod.
PreparetheeliminatingentriesrequiredforthepreparationofaconsolidatedstatementsworkpaperonDecember31,2014,assumingtheuseoftheequitymethod.
DeterminethetotalnoncontrollinginterestthatwillbereportedontheconsolidatedbalancesheetonDecember31,2014.Howdoesthenoncontrollinginterestdifferbetweenthecostmethodandtheequitymethod?

DeterminethetotalnoncontrollinginterestthatwillbereportedontheconsolidatedbalancesheetonDecember31,2014.Howdoesthenoncontrollinginterestdifferbetweenthecostmethodandtheequitymethod?

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