Non-controlling interest share of subsidiary net income

Assignment Help Financial Accounting
Reference no: EM131203845

Tray Co. reported current earnings of $560,000 while paying $56,000 in cash dividends. Sparrish Co. earned $140,000 in net income and distributed $14,000 in dividends. Tray held a 70% interest in Sparrish for several years, an investment that it originally acquired by transferring consideration equal to the book value of the underlying net assets. Tray used the initial value method to account for these shares. On January 1, 2013, Sparrish acquired in the open market $70,000 of Tray's 8% bonds. The bonds had originally been issued several years ago at 92, reflecting a 10% effective interest rate. On the date of the bond purchase, the book value of the bonds payable was $67,600. Sparrish paid $65,200 based on a 12% effective interest rate over the remaining life of the bonds. What is the non-controlling interest's share of the subsidiary's net income?

a) $39,600

b) $44,080

c) 37,800

d) 40,070

e) 42,000

Reference no: EM131203845

Questions Cloud

Determine the current through the source resistor rs : Determine the current through the source resistor Rs of each network of given figure using either mesh or nodal analysis. .
What would be resulting cost equation for maintenance costs : Using the High-Low method of cost estimation and Number of Photocopies as the cost driver, what would be the resulting cost equation for Maintenance Costs
Determine whether would encourage or discourage job seekers : Use the Internet to explore the website of one (1) company that has an online application process. Next, critique the online application process and site design to determine whether it would encourage or discourage job seekers to apply. Suggest tw..
Competitive firm demand for labor : What determines a competitive firm's demand for labor? (150 Words) How does labor supply depend on the wage? (150 Words) What other factors affect labor supply? (150 Words)
Non-controlling interest share of subsidiary net income : Tray Co. reported current earnings of $560,000 while paying $56,000 in cash dividends. Sparrish Co. earned $140,000 in net income and distributed $14,000 in dividends. What is the non-controlling interest's share of the subsidiary's net income?
Replace t configuration of given figure with p configuration : Replace the T configuration of given figure (composed of 6-kΩ resistors) with a π configuration. - Solve for the source current Is1.
How do you classify the flow in this flume : When a smooth hump is installed across a flowing flume, free surface level drops. How do you classify the initial flow? Explain the reasons for changes in flow depth near the hump using concepts of specific energy and total energy. Use the Es-Y di..
Accounting profits and economic profits : What is the difference between accounting profits and economic profits? Which of the two concepts is more appropriate for explaining decisions made by entrepreneurs? Explain.
Compute schedule of cash receipts for the months : Getty Company expects sales for the first three months of next year to be $195,000, $235,000 and $305,000, respectively. Getty expects 20 percent of its sales to be cash and the remainder to be credit sales. Compute a schedule of Getty’s cash receipt..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain why the company was able to report positive

a company completed its income statement and balance sheet for the year and provided the following

  Determine the following amounts owner equity

At the end of its accounting period, December 31, 2007, Pima has assets of $617,000 and liabilities of $382,000. Using the accounting equation, determine the following amounts.

  Most consumers perceive ipod portability and storage

Most consumers perceive iPod portability and storage to be superior to CD players. D. The price of iPods has increased dramatically.

  What is the firms overall cost of funds

Desert Trading Company has issued $100 million worth of long-term bonds at a fixed rate of 7%. The firm then enters into an interest rate swap where it pays LIBOR and receives a fixed 6% on notional principal of $100 million. What is the firm’s overa..

  Medicare taxes

Paloma Co. Stars has four employees. FICA Social Security taxes are 6.2% of the first $110,100 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. Also, for the first $7,000 paid to each employee, the company’s FUTA taxes are 0.8% ..

  Total compensation cost pertaining to the restricted shares

First Link Services granted 4.6 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within four years. The common shares have a market price of $12 per share on the grant date. Ignoring taxes, what is ..

  Prepare a multiple-step income statement

Prepare a multiple-step income statement combined with a reconciliation of retained earnings for the year ended December 31, 2008.

  Affects cash during a period

Which one of the following affects cash during a period?

  Create an updated balance sheet

Prepare a journal entry for each transaction - Then create T-accounts for each balance sheet account and include the new transactions. Post each journey entry to the appropriate T-accounts. Finally, create an updated balance sheet.

  Compute the current and quick ratios

Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

  Explain the main limitations of historic cost accounting

'Commentators on financial reporting practices argue that financial statements produced under the historic cost convention do not provide relevant information to users of those statements in times of rising prices.'

  Prepare an income statement and a retained earnings

Prepare financial statements. (LO 1,3), AP You are provided with the following information for Ramirez Enterprises, effective as of its April 30, 2014, year-end.

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