Chapter 5 Homework Solutions

Chapter 5 Homework Solutions - E5-1E5-2E5-9[1] -Beginning...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: E5-1E5-2E5-9[1] -Beginning retained earnings1.dbdAdd income to controlling interest (2.dcc [4]Less parent company's dividends3.ba [1]b [5]Ending retained earnings4.dc [2]d5.c [3]dParent's net income6.dEliminate equity in sub's income7.c [6]Subsidiary's net incomeConsolidated net incomeConsolidated net incomeIncome to noncontrolling interestIncome to controlling interest[2] - Fair value at time of acquisitionCostFair value of noncontrolling interesTotalIdentifiable assetsBook valueAppreciation of plant assetsTotalGoodwill[3] -Beginning noncontrolling interestNoncontrolling share of sub. incomNoncontrolling share of additionaldepreciation expenseNoncontrolling share of dividendsEnding noncontrolling interestE5-4a., b., and c. are at fair values. $140,000, $60,000, and $550,000, respectively.e. $0. The consolidated entity should not show the investment in the sub.d./e.Fair value at time of acquisitionCost470,000 Fair value of noncontrolling interest117,500 Total587,500 x 20% =117,500 (f.)Identifiable assetsBook value450,000 Increase in value of inventory20,000 Decrease in value of land(10,000)Increase in value of PP&E70,000 Total530,000 Goodwill57,500 (d.)E5-7Common stock120,000 [from Dynamic balanRetained earnings240,000 [from Dynamic balanDifferential160,000 [plug]Investment in Dynamic390,000 [cost of investment; gNoncontrolling interest130,000 [fair value; given]Goodwill44,000 [plug]Buildings80,000 [increase in value; giInventory36,000 [increase in value; giDifferential160,000 [from above]E5-10a.Investment in Farmstead210,000 Cash210,000 Cash3,500 Investment in Farmstead3,500 Investment in Farmstead14,000 Investment income - Farmstead14,000 b.Investment income - Farmstead...
View Full Document

Page1 / 8

Chapter 5 Homework Solutions - E5-1E5-2E5-9[1] -Beginning...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online