On January 1 , 2 0 1 9 , Aspen Company acquired 8 0 percent of Birch
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Question:
On January Aspen Company acquired percent of Birch Company\'s voting stock for $ Birch reported a $ book value, and the fair value of the noncontrolling interest was $ on that date. Then, on January Birch acquired percent of Cedar Company for $ when Cedar had a $ book value and the percent noncontrolling interest was valued at $ In each acquisition, the subsidiary\'s excess acquisitiondate fair over book value was assigned to a trade name with a year remaining life.
These companies report the following financial information. Investment income figures are not included.
Items
Sales:
Aspen Company $ $ $
Birch Company
Cedar Company Not available
Expenses:
Aspen Company $ $ $
Birch Company
Cedar Company Not available
Dividends declared:
Aspen Company $ $ $
Birch Company
Cedar Company Not available
Assume that each of the following questions is independent:
Required:
a If all companies use the equity method for internal reporting purposes, what is the December balance in Aspen\'s Investment in Birch Company account?
b What is the consolidated net income for this business combination for
c What is the net income attributable to the noncontrolling interest in
d Assume that Birch made intraentity inventory transfers to Aspen that have resulted in the following intraentity gross profits in inventory at the end of each year:
Date Amount
$
What is the accrualbased net income of Birch in and respectively.
Posted Date: