On January 1, 2011, Price Company purchased an 80% interest in the common stock of Stahl...

 

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On January 1, 2011, Price Company purchased an 80% interest in the common stock of Stahl Company for $1,040,000, which was $60,000 greater than the book value of equity acquired. The difference between implied and book value relates to the subsidiary's land. The following information is from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2011: STAHL COMPANY CONSOLIDATED BALANCES $1,400,000 1/01/11 retained earnings $300,000 Net income 220,000 680,000 Dividends declared (80,000) (140,000) 12/31/11 retained earnings $440,000 $1,940,000 Stahl's stockholders equity includes only common stock and retained earnings. Required: 1. Prepare the workpaper eliminating entries for a consolidated statements workpaper on December 31, 2011. Price uses the cost method. 2. Compute the total noncontrolling interest to be reported on the consolidated balance sheet on December 31, 2011. On January 1, 2011, Price Company purchased an 80% interest in the common stock of Stahl Company for $1,040,000, which was $60,000 greater than the book value of equity acquired. The difference between implied and book value relates to the subsidiary's land. The following information is from the consolidated retained earnings section of the consolidated statements workpaper for the year ended December 31, 2011: STAHL COMPANY CONSOLIDATED BALANCES $1,400,000 1/01/11 retained earnings $300,000 Net income 220,000 680,000 Dividends declared (80,000) (140,000) 12/31/11 retained earnings $440,000 $1,940,000 Stahl's stockholders equity includes only common stock and retained earnings. Required: 1. Prepare the workpaper eliminating entries for a consolidated statements workpaper on December 31, 2011. Price uses the cost method. 2. Compute the total noncontrolling interest to be reported on the consolidated balance sheet on December 31, 2011.

Answer rating: 100% (QA)

Answer a Particulars 1 Dividend income 8000080 To Dividend declared ... View the full answer