Operating expenses-non-controlling interest in subsidiary

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Reference no: EM13141842

Several years ago Polar Inc. purchased an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar paid an amount corresponding to the underlying book value of Icecap so that no allocations or goodwill resulted from the purchase price.

The following selected account balances were from the individual financial records of these two companies as of December 31, 2009:

consolidation

Polar sold a building to Icecap on January 1, 2008 for $112,000, although the book value of this asset was only $70,000 on that date. The building had a five-year remaining useful life and was to be depreciated using the straight-line method with no salvage value.

Required:

On the consolidated financial statements for 2009, determine the balances that would appear for the following accounts:

1. Buildings (net),

2. Operating expenses

3. Non-controlling Interest in Subsidiary's Net Income

Reference no: EM13141842

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