Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Question
Chapter 7, Problem 16P
a)
To determine
Concept Introduction:
The assets, liabilities, and interests of the parents and subsidiaries enterprises are accounted for as a single firm in consolidated financial statements, which are accounting reporting for a group of corporations.
The consolidated net income for the year 2021.
b)
To determine
Concept Introduction:
The assets, liabilities, and interests of the parents and subsidiaries enterprises are accounted for as a single firm in consolidated financial statements, which are accounting reporting for a group of corporations.
The distribution of consolidated net income to controlling interest and non-controlling interest.
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Students have asked these similar questions
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 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 $13,000 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.
Boulder
Rock
Stone
Separate Operating Income
$397,500
a.
b.
137,500
200,000
Dividends Declared
Required:
a. What is consolidated net Income for 2021?
b. How is 2021 consolidated net income distributed to the controlling and noncontrolling Interests?
$123,000
27,000
47,000
Answer is not complete.
Consolidated net income for 2021
Controlling interest in consolidated net income
Noncontrolling interest in consolidated net income…
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, 2019. Annual amortization of $25,000 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 $11,800 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
Dividends Declared
Boulder
$360,900
$120,000
Rock
124,900
21,000
Stone
188,000
41,000
Required:
What is consolidated net income for 2021?
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…
Chapter 7 Solutions
Advanced Accounting
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