Illustrate what is the noncontrolling interest share

Assignment Help Financial Accounting
Reference no: EM13130709

On January 1, 2010, Doone corporation acquired 60 percent of the outstanding voting stock of Rockne company for 300,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was 200,000 and rockne’s assets and liabilities had a collective net fair value of 500,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of 160,000 in 2011. Since being acquired, Rockne has regularly supplied inventory to Doone at 25% more than cost. Sales to Doone amounted to 250,000 in 2010 and 300,000 in 2011. Approximately, 30% of the inventory purchased during any one year is not used until the following year:

a.What is the noncontrolling interest’s share of rockne’s 2011 income?

b.Prepare Doone’s 2011 consolidated entries required by the intra entity inventory transfers?

Reference no: EM13130709

Questions Cloud

What amount of compensation expense should smiley recognize : Weiser Corp. on January 1, 2007, granted stock options for 40,000 shares of its $10 par value common stock to its key employees. The market price of the common stock on that date was $23 per share and the option price was $20.
Explain who knows no statistics benefit of large sample : Percentage who say "Yes" from 7% to 3.5%? Explain to someone who knows no statistics the advantage of taking a larger sample in a survey of opinion.
What exactly is treasury stock : What are the advantages of acquiring the majority of the voting shares of another company rather than acquiring all of its voting stock?
Middle of tanzania two internet routers with routing tables : Somewhere in the middle of the Tanzania are two Internet routers with messed up routing tables. The two routers keep sending their packets back and forth to each other, nonstop. Will an error message ever be generated from this action? If so, who..
Illustrate what is the noncontrolling interest share : Approximately, 30% of the inventory purchased during any one year is not used until the following year: Illustrate what is the noncontrolling interest’s share of rockne’s 2011 income? b.Prepare Doone’s 2011 consolidated entries requir..
Contending for the rights of women : Contending for the rights of women, my main argument is built on this simple principle, that if she be not prepared by education to become the companion of man, she will stop the progress of knowledge
Attempt to substantiate the deductibility : What additional questions should you ask Mr. Gemstone in an attempt to substantiate the deductibility of the above items?
Calculate the equity method balance in corgan investment : Calculate the equity method balance in Corgan's investment in smashing, inc., account as of december 31, 2011. prepare the worksheet adjustment for the december 31, 2011, consolidation of corgan and smashing.
Examine long-term borrowings in british airways balance : Examine long-term borrowings in British Airways's balance sheet and the related note. What, if any, convertible securities does the company have outstanding?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Write a report explaining this abnormal trend

Using any information you can obtain about this company and industry, write a report explaining this abnormal trend between the net income and the cash flow numbers and whether this should be a red flag to investors and creditors.

  Money from these accounts could be mixed

Money from these accounts could be mixed or further divided and sent to other accounts or individuals, who, in turn, would do the same, until several checks for $1000 or less eventually arrive at party headquarters.

  Should opal comprise in her gross income if last year

This year she received a state income tax refund of $170. What amount of the refund, if any, should Opal comprise in her gross income if last year her total itemized deductions exceeded the standard deduction by $350?

  Evaluate the cash balance at the end of the year

Cash Flow Computations - From the following selected data, evaluate the cash balance at the end of the year.

  Evaluate the number of pans

Evaluate the number of pans that must be sold for Prachi to break even. Conceptual Connection: Evaluate the unit variable cost? Determine the unit variable manufacturing cost?

  Evaluate the total product cost for the year

Evaluate the total product cost for the year. Evaluate the total cost of the ending inventory. Evaluate the total of cost of goods sold.

  Finished goods inventory under absorption costing method

If Eagle had sold only 9,000 tables in its first year, what total amount of cost would have been assigned to the 1,000 tables in finished goods inventory under absorption costing method?

  Determine budgeted direct materials purchases

Determine budgeted direct materials purchases for the third quarter and Calculation budgeted direct raw material purchased for the third quarter

  Advance financial accounting questions

Explain why the holding period return differs from the yield to maturity at the time of the purchase of the bond and identify all the sources of risk associated with holding this bond.

  How would you incorporate the above valuation results

Based on this limited information and your own knowledge, how would you incorporate the above valuation results in your conclusion? Why? Prepare a one-page response for your answer.

  Elucidate amount that should doe recognize as compensation

If unexpected turnover in 2012 caused the company to estimate that 10% of the options would be forfeited, elucidate amount that should Doe recognize as compensation expense for 2012?

  Evaluate the predetermined overhead rate

Evaluate the company's predetermined overhead rate for the year. Logan's actual manufacturing overhead for the year was $749,346 and its real total direct labor was 28,500 hours.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd