Solution-ACC 630 Financial Reporting Assignment

ACC 630 Financial Reporting Assignment

Reference no: EM132447247

ACC 630 Financial Reporting Assignment - Southern New Hampshire University, USA

Question - On January 1, 2016, Leo Company purchased 80 percent of Natalie Company's capital stock for $584,000 in cash and other assets. Natalie had a book value of $700,000 and the 20 percent non-controlling interest fair value was $146,000 on that date. On January 1, 2015, Natalie had acquired 30 percent of Leo for $354,250. Leo's appropriately adjusted book value as of that date was $1,147,500.

Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Natalie distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period.

Year	Leo Company	Natalie Company
2016	$164,000	$35,200
2017	$186,000	$56,000
2018	$216,000	$64,400

Required -

1. If Leo uses the equity method for investment, what is the subsidiary's income recognized by Leo in 2018?

2. What is the net income attributable to the non-controlling interest for 2018?

Reference no: EM132447247

Questions Cloud

''foundation theory leadership-ethical : Primary Task Response Within the Discussion Board area, write 600700 words that respond to the following questions with your thoughts, ideas, and comments.

Retention of even good employees clog up the succession : Does too much retention of even good employees clog up the succession process and hold back good employees who haven't been in the organization

Examine and evaluate decision making systems and techniques : Examine and evaluate decision making systems and techniques to engage group decisions and analyse how these can enhance sustainable outcomes

New management accounting system : You are the project manager for a new management accounting system that will provide monthly profit and loss accounts to a chain of 30 computer dealerships

ACC 630 Financial Reporting Assignment : ACC 630 Financial Reporting Assignment Help and Solution, Southern New Hampshire University, USA. What net income attributable to the non-controlling interest

Effective means of resolving disputes : 1. In what types of business disputes do you feel that mediation could be very effective means of resolving disputes? Why?

Principle of extrapolating the total development : The analysis effort and programming methods both rest on the principle of extrapolating the total development effort from detailed estimates

Present circumstances and set a new basis for future : You want to change the present circumstances and set a new basis for the future. Using the behavioral commitments at the end of section 18.4

Case study name-la casa de las botas : Should La casa de las botas embrace expansion or should it maintain the status quo?

User Account

All Pages

ACC 630 Financial Reporting Assignment

Reference no: EM132447247

Reference no: EM132447247

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

Wealth manager choose to allocate some of a client asset

Prepare a cash budget for the quarter ended march

What is the journal entry

What is the accounts receivable turnover

If lind company had net income of 300000 in 2011 and it

What is the effect on the market for an hour of babysitting

Graders in unorganized activities

Differentiate between a compliance audit and an operational

What are the tax consequences to checker

Determining accounting systems

Culate the weighted-average unit contribution margin

Describe nature of depreciation as it is used in accounting

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT