Solution to Exam 1 Comprehensive example posted

Solution to Exam 1 - Required 1 Allocate January 2007 acquisition-date good will to Pencil and the noncontrolling interest 2 Calculate Pencils 2010

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Required: 1) Allocate January 2007 acquisition-date good will to Pencil and the noncontrolling interest. 2) Calculate Pencil’s 2010 Equity in net income and noncontrolling interest in income. 3) Prepare consolidated entries needed to consolidate the 2010 financial statements of Pencil and Sharpener. Solution: 1) Goodwill to controlling interest: Pencil’s Acquisition cost $ 27,830 Less controlling interest in the fair value of Sharpener’ s identifiable net assets: ( 12,060) Controlling interest’s share $ 15,770 Goodwill to noncontrolling interest: Total goodwill $ 16,600 Less goodwill to controlling interest (15,770) Noncontrolling interest's share $ 830 2) 2010 Equity in net income and noncontrolling interest in income: total Equity in Net Income NCI in net income sharpener's reported income in 2010 2,000,000 1,800,000 200,000 adjustment for revaluation write-offs PPE (700,000) (630,000) (70,000) favorable leaseholds (600,000) (540,000) (60,000) long-term debt (100,000) (90,000) (10,000) goodwill (200,000) (190,000) (10,000)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/22/2012 for the course ACCT 501 taught by Professor Ma during the Spring '11 term at South Carolina.

Page1 / 4

Solution to Exam 1 - Required 1 Allocate January 2007 acquisition-date good will to Pencil and the noncontrolling interest 2 Calculate Pencils 2010

This preview shows document pages 1 - 2. Sign up to view the full document.

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