Question: I am not sure why this is wrong. please help! First Boston Corporation acquired 80 percent of Gulfside Corporation common stock on January 1,205. Gulfside
I am not sure why this is wrong. please help!
First Boston Corporation acquired 80 percent of Gulfside Corporation common stock on January 1,205. Gulfside holds 60 percent of the voting shares of Paddock Company, and Paddock owns 10 percent of the stock of First Boston. All acquisitions were made at underlying book value. The fair value of the noncontrolling interest in Gulfside was equal to 20 percent of the book value of Gulfside when acquired by First Boston, and the fair value of the noncontroling interest in Paddock was equal to 40 percent its book when control was acquired by Gulfside. During 207, income from the separate operations of First Boston, Gade $63,000,$53,000, and $69,000, respectively, and dividends of $49,000,$39,000, and $29,000, respectively, were paid. The (nonoperating) income. Required: Compute the amount of consolidated net income and the income to be assigned to the noncontrolling shareholders of Gide and Paddock for 207 using the treasury stock method. Answer is complete but not entirely correct
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