Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the parent acquired 60% of the sub on jan 1, payin

The Parent acquired 60% of the sub on Jan 1, paying $480,000. The above balance...

50.1K

Verified Solution

Question

Accounting

The Parent acquired 60% of the sub on Jan 1, paying $480,000. The above balance sheets are for the parent and sub at the date of acquisition. At the time of acquisition, any differential was attributed 50% to a trademark with a 10 year remaining life, and the remainder to goodwill.

During the first year after the acquisition, the Sub reported Net Income of $90,000 and paid dividends of $10,000. The parent had operating income of $225,000 (which did not include the income from the sub).

  1. What is the consolidated net income for the first year?
  2. What is the value of the NCI at the end of the first year?
  3. What income from sub will be reported on the parents income statement the first year?

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