a) Calculation of acqusition differential and NCI (B/S) at acqusition ?

b) calculation of year 1 consolidated net income and NCI (I/S)

= Subsidiary with Preferred Shares Outstanding Example: o P bought 80% of S common shares for $500,000 on Jan. 1, Yr. 1 o S net income for Year 1 = $120,000 There were no intercompany transactions during the year. On Jan. 1, Year 1 the carrying values of S's assets and liabilities equalled their fair values, and S's equity consisted of: $80,000 Preferred Shares: 10,000, 10%, cumulative, stated value $8, redeemable at $9 $50,000 Common shares: 50,000 $400,000 Retained earnings Preferred share dividends were 2 years in arrears on Jan. 1, Yr. 1 = Subsidiary with Preferred Shares Outstanding Example: o P bought 80% of S common shares for $500,000 on Jan. 1, Yr. 1 o S net income for Year 1 = $120,000 There were no intercompany transactions during the year. On Jan. 1, Year 1 the carrying values of S's assets and liabilities equalled their fair values, and S's equity consisted of: $80,000 Preferred Shares: 10,000, 10%, cumulative, stated value $8, redeemable at $9 $50,000 Common shares: 50,000 $400,000 Retained earnings Preferred share dividends were 2 years in arrears on Jan. 1, Yr. 1