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Noncontrolling Interest. P Corporation purchased 60 percent of the common stock of S Company on...

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Accounting

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Noncontrolling Interest. P Corporation purchased 60 percent of the common stock of S Company on January 20X3, for S6,000,000 when S's owners' equity was $8,000,000. The market values of S's inventory, land and equipment exceed the book values by $300,000, $400,000, and $100,000 respectively. The equipment has remaining life of 20 years. Additional information: a) Net income and dividends reported by S in 20X3 were $500,000 and $200,000, respectively and $600,050 and $800,000 in 20X4. b) P reported earnings from its own separate operations of $1.000,000 in 20X3 and $900,000 in 20X4,P declaed dividends of $600,000 in each of the two years. 14. Using only the information provided in the problem, goodwill: a. b. c. d. e. Shows on P's books and S's books Shows on P's books only Does not show on either P's books or S's books Shows on S's books only None of the above 15. The Noncontrolling Interest account two years after the acquisition at the end of 20X4 is a. $3,752,000 b. $3,748,000 c. $3,916,000 d. $3,704,000 e. None of the above

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