i need the answer quickly Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $498,600.At the time of the combination, Station reported common stock outstanding of $120,000 and retained earnings of$384,000, and the fair value of the noncontrolling interest was $55,400. The book value of Station's net assetsapproximated market value except for patents that had a market value of $50,000 more than their book value. Thepatents had a remaining economic life of five years at the date of the business combination. Station reported netincome of $70,000 and paid dividends of $25,000 during 20X1.Required:a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equitymethod in accounting for its investment?Balance in investment accountb. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31,20X1.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Consolidated financial statements are the overall financial statements of any entity with multiple…

the time of the combination, Station reported common stock 884,000, and the fair value of the noncontrolling interest was proximated market value except for patents that had a marke atents had a remaining economic life of five years at the date come of $70,000 and paid dividends of $25,000 during 20X1 equired: What balance did Public report as its investment in Station at method in accounting for its investment?

the time of the combination, Station reported common stock 884,000, and the fair value of the noncontrolling interest was proximated market value except for patents that had a marke atents had a remaining economic life of five years at the date come of $70,000 and paid dividends of $25,000 during 20X1 equired: What balance did Public report as its investment in Station at method in accounting for its investment?

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter8: Consolidated Tax Returns

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

On January 1, 20X8, Ramon Corporation acquired 80 percent of Tester Company's voting common stock for $300,000. At the time of the combination, Tester reported common stock outstanding of $200,000 and retained earnings of $110,000, and the fair value of the noncontrolling interest was $75,000. The book value of Tester's net assets approximated market value except for patents that had a market value of $40,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Tester reported net income of $40,000 and paid dividends of $10,000 during 20X8. What is the amount of Total Excess Depreciation that will be recorded for 20X8? Group of answer choices $6,000 $5,000 $8,000 $40,000
Public Corporation acquired 90 percent of Station Company’s voting common stock on January 1, 20X1, for $507,600. At the time of the combination, Station reported common stock outstanding of $127,000 and retained earnings of $382,000, and the fair value of the noncontrolling interest was $56,400. The book value of Station’s net assets approximated market value except for patents that had a market value of $55,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Station reported net income of $75,000 and paid dividends of $23,000 during 20X1.Required: Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the basic consolidation entry. 2. Record the amortized excess value reclassification entry. 3. Record the excess value…
Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $504,900. At the time of the combination, Station reported common stock outstanding of $127,000 and retained earnings of $384,000, and the fair value of the noncontrolling interest was $56,100. The book value of Station's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Station reported net income of $70,000 and paid dividends of $23,000 during 20X1. Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Balance in investment account b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. Note: If no entry is required for a transaction/event,…
Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $507,600. At the time of the combination, Station reported common stock outstanding of $129,000 and retained earnings of $380,000, and the fair value of the noncontrolling interest was $56,400. The book value of Station's net assets approximated market value except for patents that had a market value of $55,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Station reported net income of $75,000 and paid dividends of $25,000 during 20X1. Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Balance in investment account
Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $502,200. At the time of the combination, Station reported common stock outstanding of $123,000 and retained earnings of $390,000, and the fair value of the noncontrolling interest was $55,800. The book value of Station's net assets approximated market value except for patents that had a market value of $45,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Station reported net income of $65,000 and paid dividends of $23,000 during 20x1. Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Balance in investment account
On January 1, 2XX1, Bald Eagle Corporation purchased 100% of the common stock Ohio Enterprises for $1,800,000. This transaction is a "nontaxable" acquisition under the Internal Revenue Code. On the date of acquisition, Ohio had common stock of $600,000 and retained earnings of $840,000. The fair values of Ohio's net assets equal their respective book values except for equipment that is undervalued by $90,000 and an unrecorded brand name valued at $135,000. Assume that the tax bases of Ohio's pre-acquisition identifiable net assets equal their book values. Bald Eagle's tax effective tax rate is 30%. What is the amount of goodwill recorded in connection with this combination? Select one: O a. $135,000 O b. $202,500 O c. $67,500 d. $-0-
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows: Pop Corporation Soda Company Item Debit Credit Debit Credit Cash & Accounts Receivable $ 15,400 $ 21,600 Inventory 165,000 35,000 Land 80,000 40,000 Buildings & Equipment 340,000 260,000 Investment in Soda Company…
STI Co. acquired 55% of the outstanding shares of UE Inc on August 1, 2021 at a total cost of P5,005,000. At acquisition date, UE's ordinary shares and retained earnings amounted to P200,000 and P4,800,000. All assets and liabilities fair values equal to their book values except for the patent which had a fair value of P1,800,000 and a book value of P400,000. The patents have a remaining life of 5 years. For 2021, UE had the following earnings and dividends: Net Income Jan - July = 500,000 Aug - Dec = 1,100,000 Dividends Paid Jan - July = 1,100,000 Aug - Dec = 1,200,000 What is the net income attributable to the noncontrolling interest?