Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. pikachu corp purchased 75% of the shares of squirt

Pikachu Corp purchased 75% of the shares of Squirtle Corp on January 1, 2020. The...

50.1K

Verified Solution

Question

Accounting

image
Pikachu Corp purchased 75% of the shares of Squirtle Corp on January 1, 2020. The fair values of all the assets and liabilities of Squirtle on that date were equal to their book values, except Squirtle had unrecorded intangible assets with a fair value of $450,000 and a useful life of 3 years. Shareholders' equity of Squirtle consists of 100,000 preferred shares, common shares and retained earnings. The preferred shares are cumulative and pay dividends of S1 per share per year. The dividends on the preferred shares were last paid on December 31, 2017 During the year-ended December 31, 2020, Pikachu Corp had net income of $1,500,000 and Squirtle Corp had net income of $600,000. Squirtle declared and issued $420,000 of dividends during the year ended December 31, 2020 Required - A) Calculate the dividends issued to the common shareholders of Squirtle Corp. during the year ended December 31, 2020. (2 Points) B) Calculate the consolidated net income attributable to the equity holders of Pikachu for the year ended December 31, 2020. (4 Points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

Antibiotic resistance in bacteria occurs because ___. Group of answer choices antibiotic exposure triggers mutations in bacteria human...

Biology
1.2K views

Match each type of erosion with its definition description Splash erosion Sheet erosion Rill Gully...

Biology
1.2K views

Which of the following component(s) belongs to the second line of defenseThe tough cell sheet...

Physics
1.2K views

A long current carrying straight wire having current I 10 ampere is placed at the...

Basic Math
1.2K views

Use the accompanying 200 Los Angeles commute times to test the claim that the mean...

Basic Math
1.2K views

Ciara flies a drone around an object that is 190 feet west and 230 feet...

Basic Math
1.2K views

The number of books in a small library increases according to the function B =...

Basic Math
1.2K views

Find the x-intercept and y-intercept of the graph of 3x - 2y = -6. Then...

Algebra
1.2K views

Plot the following ordered pair in the rectangular coordinate system Tell which quadrant the point...

Accounting
1.2K views

Black Corporation and Tom each own 50% of Tan Corporations common stock....

Accounting
1.2K views

Question 21 For ABC Ltd., is preparing its manufacturing overhead budget for 2020. Relevant data...

Accounting
1.2K views

Equivalent Units of Conversion Costs The Rolling Department of Jabari Steel Company had 800 tons...