Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 4 accounting when there is noncontrolling

Question 4 Accounting when there is noncontrolling interest. ( 10 points) On January 1 ,...

90.2K

Verified Solution

Question

Accounting

image
Question 4 Accounting when there is noncontrolling interest. ( 10 points) On January 1 , Year 1 , Pop bought 90% of the shares of Sop for $200 million. At the time, the fair value of the 10% noncontrolling interest was $20 million. The equity of Sop on the date of acquisition was $170 million. Its common stock =$10 million and retained earnings =$160 million. All assets and liabilities had fair value equal to book value, except Sop owned a patent, with zero book value, and a fair value of $40 million. It has five years of remaining life. During year 1, Sop reported revenues of $50 million and expenses of $35 million. It declared dividends of $10 million. Pop had net income from its own operations (ignoring its interest in Sop) of $100 million. A. As of the date of acquisition, what consolidation entry or entries are needed? Show your work. (6 points) (Hint - these would be entries S and A in the book) B. At the end of the year, what is the amount of income that is allocable to the noncontrolling interest? (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

Finance
1.2K views

Right now, the Federal Reserve is pursuing a policy of quantitative easing for the third time...

Biology
1.2K views

When couples choose to do In-vitro fertilization eggs are removed from the female and sperm...

Geometry
1.2K views

15 13 51 Find the value of x 6x 3 4x2 2x 1 110 6x...

Basic Math
1.2K views

The points (w, 7) and (-3, 8) fall on a line with a slope of...

Algebra
1.2K views

Find the variance of the data 22 34 7 27 25 X 23 Variance Variance...

Accounting
1.2K views

Palm Corporation and Staple Company have announced terms of an exchange agreement...

Accounting
1.2K views

chang industries has bonds outstanding with a par value of $224,000 and a carrying value...

Accounting
1.2K views

Problem 2-25A Schedule of Cost of Goods Manufactured; Overhead Analysis [LO2-1, LO2-2, LO2-3, LO2-6, LO2-7]...

Accounting
1.2K views

Required information Skip to question [The following information applies to the questions displayed below.] Nicks...

Accounting
1.2K views

BugKillers provides a quarterly pest control service for $93 a quarter. Its variable costs per...

Accounting
1.2K views

A. $85,700 B. $108,700 C. $113,000 D. $90,000

Accounting
1.2K views

Porta Gemployeowo spod monthly. For the month of January of the current year, she canned...