Evaluate the balances - consolidated financial statements

Reference no: EM1374786

Some years ago Polar Inc. acquired an 80% interest in Icecap Co. The book values of Icecap's liability and asset accounts at that time were considered to be equivalent to their fair values. Polar's acquisition value corresponded to underlying book value of Icecap so that no allocations or goodwill resulted from transaction.

The subsequent selected account balances were from individual financial records of these two companies as of 31st December, 2011:

Polar sold a building to Icecap on 1st January, 2010 for $112,000, although the book value of this asset was only $70,000 on that date. The building had a 5-year remaining useful life and was to be depreciated using straight-line method with no salvage value.

Required:

For consolidated financial statements for 2011, evaluate the balances that would appear for the subsequent accounts: (1) Buildings (net), (2) Operating expenses, and (3) Non-controlling Interest in Subsidiary's Net Income.

Reference no: EM1374786

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