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Unformatted text preview: P5-32 Consolidation Workpaper at End of First Year of Ownership1-1-0896,000 – 75% (60,000 + 40,000) = 21,00075%TimeAmortBuilding20,00015,000101,500Goodwill6,0003,500*21,00012-31-08*(6,000 – 2,500)Actual Entries:Investment in S96,000Cash96,000To record original investmentInvestment in S18,000Income from S18,000To record net income (75% x 24,000)Cash12,000Investment is S12,000To record dividends (75% x 16,000)Income from S1,500Investment in S1,500To amortize building & equipment differentialNo equity method entry for goodwill impairmenta. Eliminating entries:E(1)Income from Subsidiary16,500Dividends Declared12,000Investment in Best Company Stock4,500Eliminate income from subsidiary.E(2)Income to Noncontrolling Interest6,000Dividends Declared4,000Noncontrolling Interest2,000Assign income to noncontrolling interest.24,000 x 25%=6,000E(3)Common Stock — Best Company60,000Retained Earnings, January 140,000Differential21,000Investment in Best Company Stock96,000Noncontrolling Interest25,000...
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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.
- Spring '08