Compute consolidated comprehensive income

Reference no: EM132220953

Question - Purple Corporation acquired 75 percent of Socks Corporation's common stock on January 1, 20X8, for $435,000. At that date, Socks reported common stock outstanding of $300,000 and retained earnings of $200,000, and the fair value of the non-controlling interest was $145,000. The book values and fair values of Socks's assets and liabilities were equal, except for other intangible assets, which had a fair value $80,000 more than book value and a 10-year remaining life. Purple and Socks reported the following data for 20X8 and 20X9:

Year	Socks Corporation			Purple Corporation
Year	Net Income	Comprehensive Income	Dividends Paid	Operating Income	Dividends Paid
20X8	$40,000	$50,000	$15,000	$120,000	$70,000
20X9	60,000	65,000	30,000	140,000	70,000

Required -

a. Compute consolidated comprehensive income for 20X8 and 20X9.

b. Compute comprehensive income attributable to the controlling interest for 20X8 and 20X9.

c. Assuming that Purple reported capital stock outstanding of $320,000 and retained earnings of $430,000 at January 1, 20X8, prepare the stockholders' equity section of the consolidated balance sheet at December 31, 20X8 and 20X9.

Reference no: EM132220953

Questions Cloud

Prepare an income statement through gross profit : Journalize the transactions using a perpetual inventory system. Prepare an income statement through gross profit for the month of May 2017

How about during a period of economic expansion : Consider a scenario where discouraged workers are now included in the official unemployment rate during a recessionary period in the economy.

Discuss important points you have learned about marketing : Marketing is a dynamic and exciting science. This course was designed to give you an opportunity to experience an overview of the many disciplines.

Discuss every aspect of the situation : Because the decision about relocating manufacturing operations to the United States is so important, the board of directors at AutoEdge continues.

Compute consolidated comprehensive income : Purple Corporation acquired 75 percent of Socks Corporation's common stock on January 1, 20X8, for $435,000. Compute consolidated comprehensive income

Discuss critical factors of franchising a delivery business : Provide a 750 to 1,500 word APA paper discussing the critical factors of franchising a delivery business in Jamaica.

Analyze importance of king to politics today : Describe and analyze the political aspects of Dr. Martin Luther King. Analyze importance of King to politics today.

Develop the topic money and the federal reserve system : Develop the topic money and the federal reserve system in detail. This should be between 300-700 word and include a minimum two references (more is better).

Explain the historical and philosophical foundations : Analyze and critique the difference between the theory and practice of the politics and government of the United States and California.

User Account

All Pages