Reference no: EM133029441
Problem - Mighty Company purchased a 60 percent interest in Lowly Company on January 1, 2020, for $453,600 in cash. Lowly's book value at that date was reported as $655,000, and the fair value of the non-controlling interest was assessed at $302,400. Any excess acquisition-date fair value over Lowly's book value is assigned to trademarks to be amortized over 20 years. Subsequently, on January 1, 2021, Lowly acquired a 20 percent interest in Mighty. The price of $372,000 was equivalent to 20 percent of Mighty's book and fair value. Neither company has paid dividends since these acquisitions occurred. On January 1, 2021, Lowly's book value was $927,000, a ?gure that rises to $972,000 {common stock of $300,000 and retained earnings of $672,000] by year-end. Mighty's book value was $1.86 million at the beginning of 2021 and $1.96 million [common stock of $1 million and retained earnings of $960,000] at December 31. 2021. No intra-entity transactions have occurred, and no additional stock has been sold. Each oompany applies the initial value method in acoounting for the individual investments.
Required -
a. Prepare worksheet entries which are required to consolidate these two companies for 2021.
b. What is the net income attributable to the noncontrolling interest for this year?
|
Incident response training
: Use the Web to search for "incident response training" and identify one company that offers such training.
|
|
Calculate ending inventory balance for Ivanhoe Corporation
: Calculate the ending inventory balance for Ivanhoe Corporation, assuming the company uses a perpetual inventory system and the moving-average cost formula
|
|
Explain concept of information stores
: Explain concept of information stores. Why is an understanding of how different clients store messaging information critical to the success of an email search?
|
|
Dijkstra-A Algorithms Using Python
: Write the Dijkstra, A* algorithms using Python write and implement Dijkstra's Algorithm in Python.
|
|
What is net income attributable to noncontrolling interest
: On January 1, 2021, Lowly's book value was $927,000, a ?gure that rises to $972,000. What is net income attributable to noncontrolling interest
|
|
How much will net operating income increase
: Fixed expenses are $30,000 per month and the company is selling 2,000 units per month. How much will net operating income increase
|
|
Concern in network security
: Research areas in cybersecurity that you foresee in the near future as becoming an area of concern in network security.
|
|
Explain the rationale for head-hunting
: The LemuelIris Hotel is located in the capital city of a Central Business District. In the past, its main clientele has been government officials and administra
|
|
Find an enterprise security policy
: Search your institution's intranet or Web site for its security policies. Do you find an enterprise security policy?
|