Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$120 par,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$120 par, nonvoting and nonparticipating, 8% cumulative dividend Common stock-$10 par value Retained earnings $ 2,100,000 4,100,000 10,100,000 Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,250,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2021, Smith reports earning $550,000 in net income and declares $460,000 in cash dividends. Haried applies the equity method to this investment. a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? c. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Req A and B Req C a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? a. Net income noncontrolling interest's share b. Investment in Smith account Amount < Req A and B Req C > Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021: Preferred stock-$120 par, nonvoting and nonparticipating, 8% cumulative dividend Common stock-$10 par value Retained earnings $ 2,100,000 4,100,000 10,100,000 Haried Company purchases all of Smith's common stock on January 1, 2021, for $14,250,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life. During 2021, Smith reports earning $550,000 in net income and declares $460,000 in cash dividends. Haried applies the equity method to this investment. a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? c. What consolidation entries are needed for 2021? Complete this question by entering your answers in the tabs below. Req A and B Req C a. What is the noncontrolling interest's share of consolidated net income for this period? b. What is the balance in the Investment in Smith account as of December 31, 2021? a. Net income noncontrolling interest's share b. Investment in Smith account Amount < Req A and B Req C >
Expert Answer:
Answer rating: 100% (QA)
Answer a To calculate the noncontrolling interests share of consolidated net income for this period ... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Posted Date:
Students also viewed these accounting questions
-
Smith, Inc., has the following stockholders equity accounts as of January 1, 2021: Preferred stock$100 par, nonvoting and nonparticipating, 8% cumulative dividend . . . . . . . . . . . . . . ....
-
Smith, Inc., has the following stockholders equity accounts as of January 1, 2024: Haried Company purchases all of Smiths common stock on January 1, 2024, for $14,040,000. The preferred stock remains...
-
Guido is calculating his personal income tax. He has the following expenses, and wants to know what he can claim on his tax return. The following expenses are all related to Guido's personal...
-
If you were in a rocket ship traveling away from Earth at a speed close to the speed of light, what changes would you note in your pulse? In your volume? Explain.
-
Prepare a correct trial balance, assuming all account balances are normal.
-
Determine the maximum axial force P that can be applied so as not to exceed an allowable tensile stress of allow = 200 MPa. P 40 mm 40 mm 120 mm 30 mm += 22 mm P
-
Revenue Recognition Nimble Health and Racquet Club (NHRC), which operates eight clubs in the Chicago metropolitan area, offers one-year memberships the members may use any of the eight facilities but...
-
Write a program that prompts the user to enter a phrase and then prints out the ASCII code of each character in the phrase. A sample run of your program should look like: Enter a phrase: I love...
-
Two manufacturing companies (Fuller Industries and Gogul Manufacturing) report the following information. Fuller Industries Gogul Manufacturing ($ in thousands) Sales PPE, net Sales PPE, net Year 6...
-
You have a bar magnet and a circular conducting loop, and you wish to induce a current in the loop that changes direction regularly: clockwise, counterclockwise, clockwise, and so on. Explain how to...
-
For a given current loop, a rectangular geometry can make calculations more convenient than a circular geometry. How would the magnetic field from a small square current loop compare with that from a...
-
A metal pipe is held vertically, and a bar magnet is dropped into it. What do the electric field lines in the pipe look like as the magnet falls through it?
-
A circular current-carrying wire loop produces a magnetic field. A spinning disk of uniformly distributed charge produces a similar magnetic field. How would you expect the field due to a spinning...
-
Earth's magnetic field is thought to be generated by currents in the planet's core. In what direction (clockwise or counterclockwise, when viewed along the rotation axis from north to south) does...
-
The following two websites provide information on the United States top ten exports and top ten imports: http://www.worldstopexports.com/united-states-top-10-exports/...
-
An auto-parts manufacturer is considering establishing an engineering computing center. This center will be equipped with three engineering workstations each of which would cost $25,000 and have a...
-
Hobart Co. purchases a truck on 1 July 20X7 for 200,000. The truck should last for five years and then could be sold for 40,000. The financial statements are made up to the year ended 31 December,...
-
Kiev Co. purchases a machine on 1 January 20X0 for 240,000. Depreciation is charged at 10 per cent on cost. On 30 June 20X4, the machine is sold for 120,000 and the proceeds used to buy a new vehicle...
-
The following income statement and balance sheet have been prepared for Joburg Co. After the accounts were prepared, the following information became available. 1. Interest payable on the long-term...
Destabilized Property Property Law In The Sharing Economy 1st Edition - ISBN: 1108466036 - Free Book
Study smarter with the SolutionInn App