The stockholders equity of Sum Corporation at December 31, 2010, 2011, and 2012, is as follows (in
Question:
The stockholder’s equity of Sum Corporation at December 31, 2010, 2011, and 2012, is as follows (in thousands):
Sum reported income of $80,000 in 2011 and paid no dividends. In 2012, Sum reported net income of $80,000 and declared and paid dividends of $10,000 on May 1 and $10,000 on November 1. Income was earned evenly in both years.
Pin Corporation acquired 4,000 shares of Sum common stock on April 1, 2011, for $64,000 cash and another 8,000 shares on July 1, 2012, for $164,000. Any fair value/book value differential is goodwill.
REQUIRED: Determine the following:
1. Pin’s income from Sum for 2011 and 2012
2. Noncontrolling interest at December 31, 2012
3. Preacquisition income in 2012
4. Balance of the Investment in Sum account at December 31, 2012
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Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith