Determine how much goodwill that would be allocated

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Reference no: EM133415810

Question: On January 1, 2019 Annick Co. acquired 60% of Noah Inc. by paying $650,000. The fair value of noncontrolling interest was $400,000. Noah reported common stock on that date of $420,000 with retained earnings of $250,000. A building was undervalued on Noah's financial records by $28,000. This building had a ten-year remaining life. Unrecorded copyrights with fair values of $72,000 were to be recognized and amortized over 20 years.

Noah earned income and paid cash dividends as follows:

	Net income	Dividends paid
2019	$105,000	$45,600
2020	134,400	61,600

A.) Determine how much goodwill that would be allocated between the controlling and non-controlling interest.

B.) What is the ending balance of the non-controlling interest in the subsidiary at December 31, 2019?

C.) What is the consolidated balance of the building's account at December 31, 2019

Reference no: EM133415810

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