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2. IMA Corporation purchased a 70 percent interest in SAS Corporation on January 2, 2011, for S98,000, when Sod had capital stock of S100,000 and
2. IMA Corporation purchased a 70 percent interest in SAS Corporation on January 2, 2011, for S98,000, when Sod had capital stock of S100,000 and retained earnings of $20,000. On June 30, 2012, IMA purchased an additional 20 percent interest for $37,000. Comparative financial statements for IMA and SAS Corporations at and for the year ended December 31, 2012, are as follows (in thousands dollars): icom etaain Earnings Statement for the Year Ended December 31 et Income inning ngs iVI cem Retained earnings, t at em r asset nvestment in Total assets tites ings otal Equities REQUIRED 1. Prepare a schedule explaining the $171,000 balance in IMA's Investment in SAS account at December 31, 2012. 2. Compute goodwill that will appear in the December 31, 2012, consolidated balance sheet 3. Prepare a schedule computing consolidated net income for 2012. 4. Compute consolidated retained earnings on December 31, 2012. 5. Compute noncontrolling interest on December 31, 2012
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