ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Question
Chapter 4, Problem 26P
a.
To determine
Identify the figures which would appear in a consolidated income statement for this year.
a.
Expert Solution
Explanation of Solution
Figures which would appear in a consolidated income statement for this year:
| Particulars | Amount |
| Consolidated revenues | $ 1,500,000 (1) |
| Consolidated expenses | $(1,031,000) (2) |
| Consolidated net income | $ 469,000 (3) |
| Balance of non-controlling interest in Company S | $ (50,700) (4) |
| Balance of Controlling interest in Company S | $ 418,300 (5) |
Table: (1)
Working note:
Computation of consolidated revenues:
Computation of consolidated expenses:
Computation of consolidated net income:
Computation of amount of net income of Company S allocated to non-controlling interest:
Computation of amount of net income of allocated to controlling interest:
b.
To determine
Identify the amounts which would appear in a consolidated income statement for this year.
b.
Expert Solution
Explanation of Solution
Amounts which would appear in a consolidated income statement for this year:
| Particulars | Amount |
| Consolidated revenues | $ 1,350,000 (6) |
| Consolidated expenses | $ (923,250) (7) |
| Consolidated net income | $ 426,750 (8) |
| Balance of non-controlling interest in Company S | $ (38,025) (9) |
| Balance of Controlling interest in Company S | $ 388,725 (10) |
Table: (1)
Working note:
Computation of consolidated revenues:
Computation of consolidated expenses:
Computation of consolidated net income:
Computation of amount of net income of Company S allocated to non-controlling interest:
Computation of amount of net income of allocated to controlling interest:
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Chapter 4 Solutions
ADVANCED ACCOUNTING-LL
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