User Account

All Pages

What is the noncontrolling interest share of rockne income

Assignment Help Accounting Basics
Reference no: EM133172444

Question - On January 1, 2020, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $420,000 consideration. At the acquisition date, the fair value of the 30 percent non-controlling interest was $180,000, and Rockne's assets and liabilities had a collective net fair value of $600,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $190,000 in 2021. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $250,000 in 2020 and $350,000 in 2021. Approximately 40 percent of the inventory purchased during any one year is not used until the following year.

Required -

1. What is the noncontrolling interest's share of Rockne's 2021 income?

2. Prepare Doone's 2021 consolidation entries required by the intra-entity inventory transfers?

Reference no: EM133172444

Questions Cloud

What is the effect of this transaction on shareholder equity : During the year, 40,000 treasury shares were reissued at 18 per share. What is the effect of this transaction on the shareholder's equity of the company
Prepare the journal entry to record acquisition of shares : Subsequently, Abini reacquired 25% of these shares at a cost of $22,500 and proceed to retire the shares. Prepare journal entry to record acquisition of shares
What effect does depreciation have on cash flow : What effect does depreciation have on cash flow? Give example of an out-of-pocket cost and a sunk cost by describing a situation in which both are encountered
How much money will be in the account : How much money will be in the account if the interest rate is 10% compounded semiannually with payments of $1000 made at the end of each semiannual period
What is the noncontrolling interest share of rockne income : Sales to Doone amounted to $250,000 in 2020 and $350,000 in 2021. What is the noncontrolling interest share of Rockne income
Compute the monthly repayment before the pandemic : The lives of many were affected with jobs lost and businesses declining by the pandemic. Compute the monthly repayment before the pandemic
What was your rate of return on providien stock : You sold the shares recently for $2,000. While you owned stock, it paid $10.08 per share in annual dividends. What was your rate of return on Providien stock
Calculate the depreciation schedule for the four years : GM purchased $50 million of equipment that has an expected useful life of 4 years and no salvage value. Calculate the depreciation schedule for the four years
Determine the direct materials usage variance for the period : Information concerning Johnston Company's direct materials costs is as follows: Determine the direct materials usage variance for the period

Reviews

Write a Review

Accounting Basics Questions & Answers

  How will this lease be classified by Zimmer

The fair market value of the bulldozer at the time of signing the agreement was $29,000. How will this lease be classified by Zimmer

  What amount should be charged to the accumulated profits

The share dividend was distributed on September 1, 2014, when the market price of the shares was P100 per share. What amount should be charged

  Explain the tax deferral concepts and the impact on business

Explain the tax deferral concepts and the impact on the business, the employee, and potential tax consequences on both

  Will the company have to report gain

The taxpayer, a calendar year corporation, Will the company have to report an $8,000,000 gain since they can no longer get a "like-kind" exchange?

  List the four methods in capital budgeting decisions

Question - List the four methods in capital budgeting decisions, and briefly discuss the advantages and disadvantages of each method

  Estimate useful life of operational assets

Using the technique in Exhibit compute ROI using current-cost estimates for long-term assets and depreciation expense.

  What is its net operating income

Given that Watson Corp's sales are $90,000, its break-even sales are $50,000, and its contribution margin ratio is 25%, what is its net operating income

  Determine the ending inventory cost

There are 80 units of the item in the physical inventory at December 31. Determine the ending inventory cost and the cost of goods sold by three methods

  At what amount cost of goods sold be reflected

Assuming that the foreign country is highly inflationary, at what amount should the foreign subsidiary's cost of goods sold be reflected in the U.S.

  Prepare a schedule reflecting an incremental analysis

The company received a proposal from a foreign company to buy 6,000 units of Alder Company's product for $50 per unit. This is a one-time only order and acceptance of this proposal will not affect the company's regular sales.

  In 2007 15000 shares were authorized and 7000 shares of

the following is a summary of all relevant transactions of jackson day corporation since it was organized in 2007.in

  What would sammy pizza report

What would Sammy's Pizza report for net income and retained earnings for the years 2013, 2014, and 2015?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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