Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. this is a 2 years problem. on january 1,2020, jann

This is a 2 years problem. on january 1,2020, Jannison inc (parent) acquired 90% of...

50.1K

Verified Solution

Question

Accounting

This is a 2 years problem. on january 1,2020, Jannison inc (parent) acquired 90% of Techron Co. (subsidiary ) by paying $500,000 Cash. the is no active trading market for Techron stock. Techron Co. reported a common stock account balance of $150,000 and Retained Earning of $300,000 at that date.the 100% fair value of Techron Co. was appraised at $500,000 and therefore the non controlling interest beginning balance is $55,000. the total annual amortization was $10,000 in as a result of this transaction. the subsidiary earned $100,000 in 2020 and $125,000 in 2021 with dividend payment of $25,000 each year. without regard for this investment. Jacksonian had income of $325,000 in 2020 and $375,000 in 2021

1- prepare a proper presentation of consolidated net income for 2020.

Consolidated net income:----------

Net income for noncontrolling interest-----------

Net income for controlling interest-------------------

2-prepare a proper presentation of consolidated net income for 2021

Consolidated net income ----------

Net income for Noncontrolling interest---------------------

net income for controlling interst--------------.

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