Calculate the total amount of dividends declared

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Reference no: EM1341459

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.

Reference no: EM1341459

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