Company a subsequently sells 60 of the voting interest in

Reference no: EM13591937

Company A subsequently sells 60% of the voting interest in Company S for $900,000. The fair value of Company A's retained interest of 10% in the voting stock in Company S is $120,000. The carrying amount of the identifiable net assets of Company S, exclusive of goodwill, is $770,000 (assume the increase in value was already recorded by Company A by recording a debit to investment and a credit to income, both for $70,000). Assume for purposes of this example that the carrying amount of the NCI under the proportionate method and the fair value method are unchanged from the value at the date of the additional 10% interest purchased by Company A.

Required:

1. Show the calculations and journal entries to record Company A's initial investment in Company S under the fair-value method of accounting for NCI.

2. Show the calculations and journal entries to record Company A's additional investment in Company S under the fair-value method of accounting for NCI.

3. Show the calculations and journal entries to record Company A's sale of its 60% investment in Company S under the fair-value method of accounting for NCI.

Reference no: EM13591937

Questions Cloud

In the current year company a is formed with 630000 in : in the current year company a is formed with 630000 in capital from the sale of 21000 shares of stock at 30 a share.

If your lab partner added slightly too much water in step 5 : if your lab partner added slightly too much water in step 5 of preparing the penny solution but then removed the

Glaser health products is interested in using : glaser health products of ranier falls georgia is organized functionally into three divisions operations sales and

The following information is available pertaining to bonita : the following information is available pertaining to bonita division who uses a plant-wide overhead rate on machine

Company a subsequently sells 60 of the voting interest in : company a subsequently sells 60 of the voting interest in company s for 900000. the fair value of company as retained

Materials are added at the beginning of the process how : the following information is available units in process sept 1 60 percent converted 2000 units units in process sept 30

Deana hired eric to work with her as co-counsel on criminal : deana hired eric to work with her as co-counsel on criminal cases. he received fifty 50 percent of the fee on those

Oxygen reacts with co to form co2 as the only product the : oxygen reacts with co to form co2 as the only product. the proposed first step of the mechanism iso2 co co2 owhat

Stevens purchased an auto on jan 1 2001 on december 31 : stevens purchased an auto on jan 1 2001. on december 31 2003 the accummulated depreciation account has a balance of

User Account

All Pages