Solution-Calculate controlling interest in consolidated net

Calculate controlling interest in consolidated net income

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Reference no: EM133093282

Question - On October 1, 2017, P. Company purchased 90% of the common stock of S. Company for $290,000. Additional information for both companies for 2017 follows:

	P	S
Common stock	$300,000	$90,000
Other contributed capital	120,000	40,000
Retained Earnings, 1/1	240,000	50,000
Net Income	260,000	160,000
Dividends declared (10/31)	40,000	8,000

Any difference between implied and book value relates to S's land. P. uses the cost method to record its investment in S. S. Company's income was earned evenly throughout the year.

Required -

A. Prepare the workpaper entries that would be made on a consolidated statements workpaper on December 31, 2017. Use the full year reporting alternative.

B. Calculate the controlling interest in consolidated net income for 2017.

Reference no: EM133093282

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Calculate controlling interest in consolidated net income

Reference no: EM133093282

Reference no: EM133093282

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