Example on balance sheet, What amount can be reported as

Example on balance sheet

Assignment Help Cost Accounting

Reference no: EM132496

Question:

Winner Corporation acquired 80 % of the common shares and 70 % of the preferred shares of First Corporation at underlying book value on January 1, 20X9. At that date, the fair value of the no controlling interest in First's common stock was equal to 20 % of the book value of its common stock. First's balance sheet at the time of acquisition contained the subsequent balances:

The preferred shares are cumulative and have a 10 % annual dividend rate and are four years in arrears on January 1, 20X9. All of the $5 par value preferred shares are callable at $6 per share. During 20X9, First reported total income of $100,000 and paid no dividends.

1. Based on the preceding information, what is First's contribution to consolidated total income for 20X9?

A. $80,000

B. $100,000

C. $90,000

D. $50,000

2. Based on the previous information, what can be the amount of income to be assigned to the noncontrolling interest in the 20X9 consolidated income statement?

A. $21,000

B. $18,000

C. $23,000

D. $15,000

3. Based on the previous information, the amount assigned to noncontrolling stockholders' share of preferred stock interest in the preparation of a consolidated balance sheet on January 1, 20X9, is:

A. $40,000

B. $42,000

C. $36,000

D. $48,000

4. Based on the previous information, what is the portion of First's retained earnings assignable to its preferred shareholders on January 1, 20X9?

A. $40,000

B. $50,000

C. $60,000

D. $70,000

5. Based on the information provided, what is the book value of the common stock on January 1, 20X9?

A. $410,000

B. $360,000

C. $390,000

D. $350,000

6. Based on the information provided, what amount can be reported as the noncontrolling interest in the consolidated balance sheet on January 1, 20X9?

A. $70,000

B. $130,000

C. $118,000

D. $142,000

Reference no: EM132496

Questions Cloud

Evaluate the amount of translation adjustment : Evaluate whether the companys foreign operations have a predominant functional currency

Write general journal entries to record the transactions : Write general journal entries to record the transactions and Write a stockholders' equity section as of the close of business on December 31, 2012.

What is social rehabilitation : What is social rehabilitation How is it different from medical and vocational rehabilitation

Write a program based on encryption scheme : Write a program based on encryption scheme.

Example on balance sheet : What amount can be reported as the noncontrolling interest in the consolidated balance sheet on January 1, 20X9?

Execute a recursive directory traversal : Execute a recursive directory traversal.

What are dangerous goods : What are dangerous goods What is the difference between hazardous materials, dangerous goods and hazardous substances?

Prepare visual basic application : Prepare visual basic application.

Show the cash flows from investing and financing activities : Show the cash flows from investing and financing activities sections of the cash flows statement.

User Account

All Pages