p5-36 - E(1) Income from Subsidiary Dividends Declared...

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E(1) Income from Subsidiary 16,500 Dividends Declared 12,000 Investment in Best Company Stock 4,500 Eliminate income from subsidiary. E(2) Income to Noncontrolling Interest 6,000 Dividends Declared 4,000 Noncontrolling Interest 2,000 Assign income to noncontrolling interest E(3) Common Stock — Best Company 60,000 Retained Earnings, January 1 40,000 Differential 21,000 Investment in Best Company Stock 96,000 Noncontrolling Interest 25,000 Eliminate beginning investment balance. E(4) Buildings and Equipment 15,000 Goodwill 6,000 Differential 21,000 Assign beginning differential. E(5) Depreciation Expense 1,500 Accumulated Depreciation 1,500 Amortize differential: $1,500 = $15,000 / 10 years E(6) Goodwill Impairment Loss 3,500 Goodwill 3,500 Write down goodwill for impairment.
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Power Best Elimin Sales Income from Subsidiary (1) 16,500 Credits Cost of Goods Sold Wage Expense Depreciation Expense Interest Expense Other Expenses Goodwill Impairment Loss Debits -217,500 -156,000 Income to Noncontrolling Interest
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p5-36 - E(1) Income from Subsidiary Dividends Declared...

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