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  3. 1. parent company acquired 90% of son inc. on janu

1. Parent Company acquired 90% of Son Inc. on January 31, 20X2 for $ 1,300,000....

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Accounting

1. Parent Company acquired 90% of Son Inc. on January 31, 20X2 for $ 1,300,000. The book value of Son's individual assets and liabilities approximated their acquisition-date fair values. Parent company reported $$450,000 in current assets and $800,000 in long-term assets on January 31, 20X2. On the date of acquisition, Son reported the following: Cash $ 350,000 Current Liabilities $ 120,000 Inventory 100,000 Plant Assets (net) 320,000 Common Stock 100,000 Property 500,000 Retained Earnings 1,050,000 Total Assets $ 1,270,000 Total Liabilities & Equity $ 1,270,000 During the year Son Inc. reported $310,000 in net income and declared $15,000 in dividends. Parent Company reported $520,000 in net income and declared $25,000 in dividends. Parent accounts for their investment using the equity method. (Please show your computation separately below for each of the following question)

a. What will be total long-term assets in the consolidation balance sheet? b. What amount will be reported for noncontrolling interest in the consolidation balance sheet? c. What will be parent companys income from Son company in 20X2? d. What will be the Parent s investment in Son company at end of the year 20X2?

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