What is the subsidiary income recognized by Uncle

Assignment Help Accounting Basics
Reference no: EM132447323

Question - On January 1, 2016, Uncle Company purchased 80 percent of Nephew Company's capital stock for $592,000 in cash and other assets. Nephew had a book value of $714,000 and the 20 percent non controlling interest fair value was $148,000 on that date. On January 1, 2015, Nephew had acquired 30 percent of Uncle for $301,750. Uncle's appropriately adjusted book value as of that date was $972,500.

Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $15,000 in dividends to shareholders each year and Nephew distributes $2,000 annually. Any excess fair-value allocations are amortized over a 10-year period.

Year

Uncle Company

Nephew Company

2016

$104,000

$44,800

2017

$132,000

$53,800

2018

$196,000

$60,800

Required -

1. Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's income recognized by Uncle in 2018?

2. What is the net income attributable to the non-controlling interest for 2018?

Reference no: EM132447323

Questions Cloud

Career in the human health sciences : Any topic of interest, related to any of the chapters in the book, any human health sciences, career in the human health sciences,
About the digestive system : Each day for four consecutive days, write an entry in your food diary detailing your food habits. How was social/family pressure a factor in your food decisions
Anatomy and physiology : Research internet for recent medical or health-related discoveries or news. Provide at least 3 sources for your report and glossary of technical terms.
How much goodwill should Parma recognize from acquisition : If there is less than 50 percent chance that subsidiary will be able to utilize the NOL carryforward, how much goodwill should Parma recognize from acquisition
What is the subsidiary income recognized by Uncle : Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's income recognized by Uncle in 2018
What is the parent share of consolidated net income : Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, What is the parent share of consolidated net income
Calculate the Santiago and Amy child tax credit : Santiago and Amy are married and file a joint tax return, claiming as dependents their three children, Calculate the Santiago and Amy's child tax credit
How much partnership profit assigned to each partner : Jones, the managing partner, receives a bonus equal to 10 percent of the business's profit. How much partnership profit assigned to each partner
What is the impact of the transaction on Rose : In return for $15,000, Rose sells 10% of the Parent Corporation stock to Child Corporation. What is the impact of the transaction on Rose

Reviews

Write a Review

Accounting Basics Questions & Answers

  The appropriate high school district for each housing

You are trying to help the MCSCC (Monroe County School Corporation) determine the appropriate high school district for each housing development in Bloomington.

  Harris fabrics computes its predetermined overhead rate

harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning

  Depreciation temporary differences

Information for Kent Corp for the year 2013: Reconciliation of pretax accounting income and taxable income:

  Period and the desired ending inventory

In a merchandising company, the required merchandise purchases for a period are determined by subtracting the units in beginning inventory from the sum of the units to be sold during the period and the desired ending inventory.

  Social insurance programs-income assistance programs

How is the life-cycle pattern of income related to the measurement of income equality at a point in time? What are the differences between social insurance programs and income assistance programs?

  Data are taken from the unadjusted trial balance

The following data are taken from the unadjusted trial balance of the Westcott Company at December 31, 2013. Each account carries a normal balance and the accounts are shown here in alphabetical order.

  What journal entry would wolf creek make on december

What journal entry would Wolf Creek make on December 31, 2014, if it uses straight-line depreciation

  The vice-president for human resources in learning

1. Sandra Pilsden, the Vice-President for Human Resources in Learning, Inc. was concerned about a recent memo she had recently received from the CEO's office regarding the possibility of outsourcing the payroll function to Salary Experts, a growin..

  In 2012 helen sold property and reported her gain by the

in 2012 helen sold property and reported her gain by the installment method. her basis in the property was 150000 and

  Find all intervals where the function is increasing

Finally, find all critical points in the graph of f(x) critical points: x = (Enter your x -values as a comma-separated list, or none if there are no critical points.)

  How does a country determine who should be taxed

One of the challenges associated with international taxation is determining who should be taxed and the sources of earnings that are taxed

  Problem regarding the data description

Scanning America, Inc., is a small but rapidly growing firm in the digitized document translation business. The company reads architectural and engineering drawings into a scanning device that translates graphic information into a digitalized form..

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