The following balances were taken from the records of Wildhorse Company: Common stock (1/1/20 and 12/31/20)...
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The following balances were taken from the records of Wildhorse Company: Common stock (1/1/20 and 12/31/20) Retained earnings 1/1/20 Net income for 2023 Dividends declared in 2023 Retained earnings, 12/31/20 Total stockholders' equity on 12/31/20 $163,500 182,500 (42,600) $723,500 303,400 $1,026,900 Blossom Company purchased 75% of Wildhorse Company's common stock on January 1, 2021 for $903,600. The difference between implied value and book value is attributable to assets with a remaining useful life on January 1, 2023 of ten years. Compute the difference between cost/(implied) and book value applying: 1. Parent company theory. Economic unit theory. 2. Assuming the economic unit theory: 1. Compute noncontrolling interest in consolidated income for 2023. 2. Compute noncontrolling interest in net assets on December 31, 2023. The following balances were taken from the records of Wildhorse Company: Common stock (1/1/20 and 12/31/20) Retained earnings 1/1/20 Net income for 2023 Dividends declared in 2023 Retained earnings, 12/31/20 Total stockholders' equity on 12/31/20 $163,500 182,500 (42,600) $723,500 303,400 $1,026,900 Blossom Company purchased 75% of Wildhorse Company's common stock on January 1, 2021 for $903,600. The difference between implied value and book value is attributable to assets with a remaining useful life on January 1, 2023 of ten years. Compute the difference between cost/(implied) and book value applying: 1. Parent company theory. Economic unit theory. 2. Assuming the economic unit theory: 1. Compute noncontrolling interest in consolidated income for 2023. 2. Compute noncontrolling interest in net assets on December 31, 2023.
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Lets calculate the difference between cost implied and book value for Wildhorse Company applying both the Parent Company Theory and the Economic Unit ... View the full answer
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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