On January 1, 2021, Stephanopoulos Inc. acquired 90% of Muir Co. by paying $450,000 cash. Muir...
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On January 1, 2021, Stephanopoulos Inc. acquired 90% of Muir Co. by paying $450,000 cash. Muir Co. reported a Common Stock account balance of $130,000 and Retained Earnings of $270,000 at that date. The fair value of Muir Co. was appraised at $510,000. The total annual amortization was $12,000 as a result of this transaction. The subsidiary earned $102,000 in 2021 with dividend payments of $45.000. Without regard for this investment, Stephanopoulos had income of $310,000 in 2021. Please show your work for the opportunity for partial credit. a. Compute consolidated net income, net income attributable to the noncontrolling interest, and net income attributable to the controlling interest for 2021 (11 pts). b. What is the non-controlling interest balance as of December 31, 2021 (6 pts)? Edit View Insert Format Tools Table 12pt ✓ Paragraph v B IUA 2 T²V On January 1, 2021, Stephanopoulos Inc. acquired 90% of Muir Co. by paying $450,000 cash. Muir Co. reported a Common Stock account balance of $130,000 and Retained Earnings of $270,000 at that date. The fair value of Muir Co. was appraised at $510,000. The total annual amortization was $12,000 as a result of this transaction. The subsidiary earned $102,000 in 2021 with dividend payments of $45.000. Without regard for this investment, Stephanopoulos had income of $310,000 in 2021. Please show your work for the opportunity for partial credit. a. Compute consolidated net income, net income attributable to the noncontrolling interest, and net income attributable to the controlling interest for 2021 (11 pts). b. What is the non-controlling interest balance as of December 31, 2021 (6 pts)? Edit View Insert Format Tools Table 12pt ✓ Paragraph v B IUA 2 T²V
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Answer a Stephanopoulos Muir Reported net income 31000... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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