Reference no: EM13333396

Problem

Cox Ltd. acquired 70% of the common shares of March Co. at the beginning of 20X7. At the acquisition date, March's shareholders' equity consisted of the following:

Common shares    $720,000
  Retained earnings    360,000

The only acquisition differential pertained to goodwill.

Cox's "Investment in March" general ledger account is as follows:

1/2/X7 Cost          $ 781,200	12/31/X7 Dividends $33,600
12/31/X7 Investment Income 62,160	12/31/X8 Dividends  42,000
12/31/X8 Investment Income 76,440	12/31/X9 Dividends  50,400
12/31/X9 Investment income 94,080
Balance $ 887,880

March usually declares half of its profits as dividends.

Cox uses the entity theory method to consolidate its subsidiary.

Required:

a) Calculate the total amount of dividends declared by March for 20X7.

b) Calculate March's profit for 20X8.

c) Calculate the non-controlling interest amounts for Cox's 20X9

i. consolidated income statement, and 

ii. consolidated balance sheet.

d) Calculate the amount of goodwill that should appear on Cox's 20X9 consolidated balance sheet.