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473.8. Pea Company purchased 70 percent of Split Companys stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for
473.8.
Pea Company purchased 70 percent of Split Companys stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $420,000. Split had purchased the building on January 1, 20X1, at a cost of $520,000 and used straight-line depreciation on an expected life of 20 years. The assets total estimated economic life is unchanged as a result of the intercompany sale.
I already have required a-c, see below:
but I need help with parts d & e:
Answer is complete and correct. b. What amount of depreciation expense would Split have reported for 209 if it had continued to own the building? Answer is complete and correct. c. Prepare the consolidation entry or entries needed to eliminate the effects of the intercompany building transfer in preparing a full set of consolidated financial statements at December 31, 209. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. d. What amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 209 if Split reports net income of $30,000 for 209 ? Answer is complete but not entirely correct. Income assigned to noncontrolling interest e. Split reports assets with a book value of $430,000 and liabilities of $100,000 at January 1,209, and reports net income of $30,000 and dividends of $19,000 for 209. What amount will be assigned to the noncontrolling interest in the consolidated balance sheet at December 31,209, assuming the fair value of the noncontrolling interest at the date of acquisition was equal to 30 percent of Split Company's book value? Answer is complete but not entirely correctStep by Step Solution
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