7-27 - 7-27 Consolidation following Inventory

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Unformatted text preview: 7-27 Consolidation following Inventory TransactionsDifferential:1/1/0183,000 - .60 (100,000+20,000) = 11,000 all to LandLast year:42,50025,500B --------------T ------------EIP= 42,500-25,500 = 17,000 x 20% = 3,400This year:BIP = 3,40035,00021,000B --------------T ------------EIP= 35,000-21,000 = 14,000 x 30% = 4,20014,00028,000--------->B ------------T EIP= 28,000-14,000 = 14,000 x 13/28 = 6,500a.Entries recorded by Bell on its investment in Troll:Cash6,000Investment in Troll Corporation Stock6,000Record dividends from Troll: $10,000 x .60Investment in Troll Corporation Stock18,000Income from Subsidiary18,000Record equity-method income: $30,000 x .60b.Eliminating entries, December 31, 20X2:E(1)Income from Subsidiary18,000Dividends Declared6,000Investment in Troll Corporation Stock12,000Eliminate income from subsidiary.E(2)Income to Noncontrolling Interest11,680Dividends Declared4,000Noncontrolling Interest7,680Assign income to noncontrolling interest:$11,680 = ($30,000 + $3,400 - $4,200) x .40$11,680 = ($30,000 + $3,400 - $4,200) x ....
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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7-27 - 7-27 Consolidation following Inventory

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