80.2K

Verified Solution

Link Copied!

On July 1, 2022. Timothy Company acquired a 70 percent interest in Benjamin Company in exchange for consideration of $840,000 in cash and equity securities. The remaining 30 percent of Benjamin's shares traded closely near an average price that totaled $360,000 both before and after Timothy's acquisition. In reviewing its acquisition, Timothy assigned a $120,000 fair value to a patent recently developed by Benjamin, even though it was not recorded within the financial records of the subsidiary This patent is Benjamin had book value of net assets at S880,000 on January 1, 2022. The affiliates report the following 2022 amounts from their own separate operations:

Assume the subsidiary's income was eamed uniformly throughout the year. The subsidiary declared dividenas quarteriy. Answer the following questions. (Do not add dollar sign, do not add comma to your amount, round the answor to the whole number) 1. What amount is reported for goodwill in the December 31,2022 consoludated balance sheeti 2. What is consolidated net income attributable to controlling interests for year 2022? Assume the subsidiary's income was eamed uniformly throughout the year. The subsidiary declared dividenas quarteriy. Answer the following questions. (Do not add dollar sign, do not add comma to your amount, round the answor to the whole number) 1. What amount is reported for goodwill in the December 31,2022 consoludated balance sheeti 2. What is consolidated net income attributable to controlling interests for year 2022

Answer & Explanation Solved by verified expert

See Answer