Ch9 - Ch9 Student: _ 1. Westwood Company owns 90 percent of...

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Ch9 Student: ___________________________________________________________________________ 1. Westwood Company owns 90 percent of the common stock of Austin Corporation but none of Austin's preferred stock. The common stock outstanding and the retained earnings of Austin Corporation are $1,010,000 and $930,000, respectively. Austin Corporation has $280,000 of 10 percent $100 par cumulative preferred stock outstanding, issued at par. The preferred stock is callable at $109 per share, and the preferred dividend is three years in arrears including the current year. The total noncontrolling interest reported in the consolidated balance sheet is: A. $183,080. B. $278,600. C. $389,200. D. $572,280. On January 1, 2008, Chester Industries acquired 20 percent of Durham Corporation's eight percent, $100 par value, cumulative preferred stock at par for $50,000. Durham declared and paid preferred stock dividends for 2008; there were no dividends in arrears. Chester acquired 80 percent of the voting common stock of Durham at underlying book value in 2006. During 2008, Chester reported separate operating income of $100,000. Durham reported 2008 net income of $80,000 and declared dividends on common stock of $30,000 in addition to preferred dividends. Durham reported the following amounts in its stockholders' equity at January 1, 2008: 2. Based on the preceding information, the amount of 2008 income assignable to the noncontrolling interest is: A. $28,000. B. $16,000. C. $15,200. D. $12,000. 3. Based on the preceding information, the amount that should be reported for noncontrolling interest in the consolidated balance sheet at December 31, 2008 is: A. $398,000 B. $392,000 C. $376,000 D. $370,000 4. Based on the preceding information, consolidated net income for 2008 is: A. $144,000. B. $148,000. C. $152,000. D. $164,000.
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Blue Company owns 90 percent of the common stock of Lime Corporation, and 80 percent of the common stock of Tan Corporation. Lime owns 30 percent of the common stock of Tan Corporation. The income from the separate operations of each of the corporations, excluding any investment income, is as follows: 5. Consider the information given above. Lime's noncontrolling interest's share of income is: A. $73,200. B. $43,200. C. $22,800. D. $36,000. 6. Consider the information given above. Consolidated net income is: A. $1,280,000. B. $1,244,000. C. $1,237,600. D. $ 924,000. Pine Company purchased at book value 70% of the outstanding common stock of Fir, Inc. on December 31, 2007. Fir also has 2,000 shares of 10%, $100 par value preferred stock outstanding, none owned by Pine. In 2008 Pine reports net income from it separate operations of $200,000, while Fir reports net income of $100,000 and pays dividends on common stock of $40,000 in addition to preferred dividends. Fir's commons stock and retained earnings on the date of Pine's acquisition were $500,000 and $150,000,
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This note was uploaded on 05/26/2011 for the course ACCT 410 taught by Professor Khalib during the Spring '11 term at Strayer.

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Ch9 - Ch9 Student: _ 1. Westwood Company owns 90 percent of...

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