Week 5 - a.) NCIinsubsidiaryIncome: .25/1.25 = .20 160,000...

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a.)  NCI in subsidiary Income: .25/1.25 = .20 160,000 + 15,000 -18,000 = 157,000 x 40% = 62,800 b.) 2009 Sales  250,000  COGS  250,000  COGS  15,000  Inventory  15,000  2010 Sales 300,000 COGS  300,000  COGS  18,000  Inventory  18,000  Inventory  18,750  COGS  18,750 
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Given Data P05-35 Part a. facts: Gibson acquired interest in Keller 1/1/2009 60% Various considerations given for acquisition $570,000 Fair value of noncontrolling interest at acquisition $380,000 Value assigned to Keller customer list $100,000 Keller customer list - life for purposes of amortization 20 Book value of land Gibson sold to Keller on 1/2/2009 $60,000 Price paid by Keller for Gibson's land 100,000 Cost of inventory shipped by Keller to Gibson in 2009 100,000 Price paid by Gibson for 2009 inventory 150,000 Cost of intercompany shipments by Keller to Gibson in 2010 140,000 Price paid by Gibson for 2010 intercompany shipments 200,000 Percentage of inventory resold in period following transfer 20% Amount Gibson owes Keller at end of 2010 $40,000 Part b. facts: Building sold to Keller instead of land on 1/1/2003 Book value of building Gibson sold to Keller $60,000 Price paid by Keller for Gibson building 100,000 Cost of building 140,000 Remaining life at date of transfer 10 Gibson Keller Company Company 12/31/2010 12/31/2010 Sales $(800,000) $(500,000) Cost of goods sold 500,000 300,000 Operating expenses 100,000 60,000 Income of Keller Company (84,000) - Net income $(284,000) $(140,000) Retained earnings, 1/1/10
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Week 5 - a.) NCIinsubsidiaryIncome: .25/1.25 = .20 160,000...

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