Week_5_homework_acc569ch - a.) NCI in subsidiary Income:...

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Unformatted text preview: a.) NCI in subsidiary Income: Rockne's net income 2010 $160,000 Add: Gross profits deferred from 2009 15000 Less: Gross profits deferred into 2010-18000 Rockne's net income after removal of unrealized gain $157,000 Noncontrolling interest % 40 Noncontrolling interest in subsidiary income 62800 b.) TI Entry Sales $300,000 Cost of goods sold $300,000 *G Entry Retained Earnings, 1/1/09 $15,000 Cost of goods sold $15,000 G Entry Cost of goods sold, 1/1/10 $18,000 Inventory $18,000 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...
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This note was uploaded on 06/19/2011 for the course ACCT 569 taught by Professor Nauri during the Spring '11 term at Keller Graduate School of Management.

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Week_5_homework_acc569ch - a.) NCI in subsidiary Income:...

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