Boulder, Incorporated, obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $22,300 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2023, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,600 per year. For 2024, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income. Company Separate Operating Income Dividends Declared Boulder $ 263,300 $ 111,000 Rock 91,300 21,000 Stone 156,000 48,000 Required: What is consolidated net income for 2024? How is 2024 consolidated net income distributed to the controlling and noncontrolling interests?

Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $24,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $10,600 per year. For 2021, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income. Separate Operating Income $324,300 Dividends Declared Boulder $116,000 23,000 Rock 112,300 176,000 Stone 41,000 Required: a. What is consolidated net income for 2021? b. How is 2021 consolidated net income distributed to the controlling and noncontrolling interests? Amount a. Consolidated net income for 2021 b. Controlling interest in consolidated net income Noncontrolling interest in consolidated net income

Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $22,000 is applicable on the allocations of Rock’s acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company’s voting stock. Excess business fair-value amortization on this second acquisition amounted to $8,000 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income.   Seperate operating income Dividends Declared Boulder $245000 $120000 Rock 85000 28000 Stone 150000 42000 a. What is consolidated net income for 2018?b. How is consolidated net income distributed to the controlling and noncontrolling interests?

Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $6,162,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,070,000 including retained earnings of $1,570,000. At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary: Consideration transferred $ 6,162,000 Mathias stockholders' equity 2,070,000 Excess fair over book value $ 4,092,000 to unpatented technology (8-year remaining life) $ 912,000 to patents (10-year remaining life) 2,640,000 to increase long-term debt (undervalued, 5-year remaining life) (170,000 ) 3,382,000 Goodwill $ 710,000 Postacquisition, Allison employs the equity method to account for its investment in…

Allison Corporation acquired all of the outstanding voting stock of Mathias, Incorporated, on January 1, 2023, in exchange for $6,203,000 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,080,000 including retained earnings of $1,580,000. At the acquisition date, Allison prepared the following fair-value allocation schedule for its newly acquired subsidiary: Consideration transferred         $ 6,203,000Mathias stockholders' equity         2,080,000Excess fair over book value         $ 4,123,000to unpatented technology (8-year remaining life)    $ 928,000     to patents (10-year remaining life)    2,660,000     to increase long-term debt (undervalued, 5-year remaining life)    (180,000)    3,408,000Goodwill         $ 715,000Postacquisition, Allison employs the equity method to account for its investment in Mathias. During the two years following the…

On July 1, 2019, Killearn Company acquired 88,000 of the outstanding shares of Shaun Company for $13 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to significantly influence the investee’s decisions.   As of July 1, 2019, the investee had assets with a book value of $3 million and liabilities of $74,400. At the time, Shaun held equipment appraised at $364,000 more than book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $972,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.   Shaun’s policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun’s income, earned evenly throughout each year, was $598,000 in 2019, $639,600 in 2020,…

The Individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent Interest in Keller on January 1, 2020, In exchange for various considerations totaling $480,000. At the acquisition date, the fair value of the noncontrolling interest was $320,000 and Keller's book value was $630,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $170,000. This Intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for Its Investment in Keller. Gibson sold Keller land with a book value of $80,000 on January 2, 2020, for $160,000. Keller still holds this land at the end of the current year. Keller regularly transfers Inventory to Gibson. In 2020, It shipped Inventory costing $154,000 to Gibson at a price of $220,000. During 2021, Intra-entity shipments totaled $270,000, although the original cost to…

On July 1, 2019, Killearn Company acquired 105,000 of the outstanding shares of Shaun Company for $19 per share. This acquisition gave Killearn a 40 percent ownership of Shaun and allowed Killearn to significantly influence the investee’s decisions.   As of July 1, 2019, the investee had assets with a book value of $5 million and liabilities of $1,101,500. At the time, Shaun held equipment appraised at $280,000 more than book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $650,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.   Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $640,000 in 2019, $670,600 in…

Intor Company acquired 20% of the ordinary shares of Intee Company on January 1, 2019. At this date, all the identifiable assets and liabilities of Intee were recorded at fair value. An analysis of the acquisition showed that P200,000 of goodwill was acquired. Intee Company recorded a profit of P1,000,000 for 2020 and paid dividend of P700,000 during the same year. The following transactions have occurred between the two entities. • In December 2020, Intee sold inventory to Intor for P1,500,000. This inventory had previously cost Intee P1,000,000 and remains unsold by Intor on December 31. 2020. • In November 2020, Intor sold inventory to Intee at a before tax profit of P300.000. Half of this was sold by Intee before December 31, 2020. • In December 2019, Intee sold inventory to Intor for P1,800,000. This inventory had cost Intee P1,200,000. At December 31. 2019, this inventory remained unsold by Intor. However, it was all sold by Intor in 2020. Ignoring income tax, Intor company…

On 1 July 2019, Brad Ltd acquired all assets and liabilities of Pitt Ltd. In exchange for these assets and liabilities, Brad Ltd issued 100,000 shares that at date of issue had a fair value of $5.20 per share. Costs of issuing these shares amounted to $1,000. Legal cost associated with the acquisition of Pitt Ltd amounted to $1,200.The assets and liabilities of Pitt Ltd at 1 July 2019 were as follows:Carrying Amount ($) Fair Value ($)AssetsCash 2,000 2,000Accounts receivable 10,000 10,000Inventory 64,000 68,000Equipment 320,000 232,000Accumulated depn - Equipment (96,000) -Patents 280,000 280,000LiabilitiesAccounts payable (16,000) (16,000)Debentures (64,000) (64,000)Required:a) Prepare the acquisition analysis at 1 July 2019 for the acquisition of Pitt Ltd by Brad Ltd.b) Prepare the journal entries in the records of Brad Ltd at 1 July 2019.