On January 1, 20X8, Parent Company purchased 75% of the common stock of Subsidiary Company for...

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On January 1, 20X8, Parent Company purchased 75% of thecommon stock of Subsidiary Company for $360,000. On this date,Subsidiary had common stock, other paid in capital, and retainedearnings of $20,000, $130,000, and $200,000, respectively. Anyexcess of cost over book value is due to goodwill. Parent accountsfor the Investment in Subsidiary using cost method. On January 1,20X8, Subsidiary sold $100,000 par value of 6%, ten-year bonds for$97,000. The bonds pay interest semi-annually on January 1 and July1 of each year. On January 1, 20X9, Parent repurchased all ofSubsidiary's bonds for $99,100. The bonds are still held onDecember 31, 20X9. Both companies have correctly recorded allentries relative to bonds and interest, using straight-lineamortization for premium or discount. Calculate NCI's portion ofconsolidated net income for the year ended of December 31, 20X9.Round all computations to the nearest dollar

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3.9 Ratings (480 Votes)

Please like if u helps you To solvethis question just input those variables which are to be used inlogistic regression as the question talks about using twovariables only that is total loans and leases to total assets total expenses total assets so we will not input total capassetsas an input variable in our excel here we goAs one See Answer

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