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  3. manson corporation acquired 80 percent of sense co

Manson Corporation acquired 80 percent of Sense Corporation's voting stock on January 1, 20X2, for...

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Accounting

image Manson Corporation acquired 80 percent of Sense Corporation's voting stock on January 1, 20X2, for $320,000. The fair value of the noncontrolling interest was $80,000 at the date of acquisition. Sense reported common stock outstanding of $100,000 and retained earnings of $240,000. The differential is assigned to buildings with an expected life of 15 years at the date of acquisition. On December 31, 20X4, Manson had $20,000 of unrealized profits on its books from inventory sales to Sense, and Sense had $30,000 of unrealized profit on its books from inventory sales to Manson. All inventory held at December 31,204, was sold during 205. On December 31,205, Manson had $15,000 of unrealized profit on its books from inventory sales to Sense, and Sense had unrealized profit on its books of $50,000 from inventory sales to Manson. In 205 Sense reported net income of $100,000. The amount Manson will report as income from Sense Company for year 205 would be: $60,800 $62.800 $65,800. $68,000

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