Reference no: EM13680499

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

Common shares $720,000
Retained earnings 360,000

The only acquisition differential pertained to goodwill.

ABC's "Investment in XYZ" 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

XYZ usually declares half of its profits as dividends.

ABC uses the entity theory method to consolidate its subsidiary.

1) Calculate the non-controlling interest amounts for ABC's 20X9

i. consolidated income statement, and
ii. consolidated balance sheet.

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