Reference no: EM132844536
Question - Poly-Ester Ltd. acquired an 85% interest in Silk Company on December 31, 2019 for $782,000. On that date, Silk had common shares of $500,000 and retained earnings of $100,000. The carrying amounts of Silk's net assets were equal to fair value except for inventory which had a fair value of $70,000 greater than its carrying value. The balance of the acquisition differential was allocated to a patent. The patent had a remaining useful life of 10 years on this date. There was no goodwill acquired by Poly-Ester in the business combination.
Silk reported net income of $30,000 in 2020 and $52,000 in 2021. Silk declared a dividend in 2021 for $15,000.
Poly-Ester uses the cost method to record its investment in Silk. Poly-Ester reported net income of $28,000 in 2020 and a loss of $45,000 in 2021. Poly-Ester's retained earnings on December 31, 2021, were $91,000.
There were numerous intercompany transactions between Poly-Ester and Silk. As of December 31, 2021, Silk owed Poly-Ester $42,000.
Both corporations have a December 31 year end.
Required -
What is the value of the non-controlling interest on December 31, 2019?
What is the amount of the unamortized AD as of December 31, 2021?
What is the amount of the consolidated net income (loss) attributable to the parent in 2021?
What is the amount of the consolidated retained earnings as at December 31, 2021?
If Poly-Ester had used the equity method to record, what is the balance of Investment in Silk as of December 31, 2021?
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