6-34 - P6-34 Consolidation Workpaper with Intercompany...

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Unformatted text preview: P6-34 Consolidation Workpaper with Intercompany TransfersBuilding sale M <- B1/1/04LifeCostA/DBook ValSale priceGain13,200121,100Land Sale6/14/04 M ->BCost3,000Sale price7,000Gain4,000Equity method entries:Investment in S19,500Income from S19,500Net income (30,000 x 65%)Cash3,250Investment in S3,250Dividends (5,000 x 65%)a.Eliminating entries:E(1)Income from Subsidiary19,500Dividends Declared3,250Investment in Blank Corp. Stock16,250Eliminate income from subsidiary:$19,500 = $30,000 x .65$3,250 = $5,000 x .65E(2)Income to Noncontrolling Interest6,265Dividends Declared1,750Noncontrolling Interest4,515Assign income to noncontrolling interest:$6,265 = ($30,000 - $13,200 + $1,100) x .35$1,750 = $5,000 x .35E(3)Common Stock Blank Corporation60,000Retained Earnings, January 185,000Investment in Blank Corp. Stock94,250Noncontrolling Interest50,750Eliminate beginning investment balance:$85,000 = $110,000 - ($30,000 - $5,000)$94,250 = $110,500 - $16,250$50,750= ($110,000 + $60,000 - $25,000) x .35$50,750= ($110,000 + $60,000 - $25,000) x ....
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6-34 - P6-34 Consolidation Workpaper with Intercompany...

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