Compute consolidated comprehensive income

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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

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