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Purple Corporation acquired 75 percent of Socks Corporations common stock on January 1, 20X8, for...

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Accounting

Purple Corporation acquired 75 percent of Socks Corporations common stock on January 1, 20X8, for $435,000. At that date, Socks reported common stock outstanding of $300,000 and retained earnings of $200,000, and the fair value of the noncontrolling interest was $145,000. The book values and fair values of Socks's assets and liabilities were equal, except for other intangible assets, which had a fair value $80,000 more than book value and a 10-year remaining life. Purple and Socks reported the following data for 20X8 and 20X9:

Socks Corporation Purple Corporation
Year Net Income Comprehensive Income Dividends Paid Operating Income Dividends Paid
20X8 $ 40,000 $ 50,000 $ 15,000 $ 120,000 $ 70,000
20X9 60,000 65,000 30,000 140,000 70,000

Required: a. Compute consolidated comprehensive income for 20X8 and 20X9. b. Compute comprehensive income attributable to the controlling interest for 20X8 and 20X9. c. Assuming that Purple reported capital stock outstanding of $320,000 and retained earnings of $430,000 at January 1, 20X8, prepare the stockholders equity section of the consolidated balance sheet at December 31, 20X8 and 20X9.

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