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ABC Ltd. acquired 70% of the common shares of XYZ Ltd. at the beginning of 20X7. At the acquisition date, XYZs shareholders equity consisted of

ABC Ltd. acquired 70% of the common shares of XYZ Ltd. at the beginning of 20X7. At the acquisition date, XYZs shareholders equity consisted of the following: Common shares $720,000 Retained earnings 360,000 The only acquisition differential pertained to goodwill. ABCs Investment in XYZ general ledger account is as follows: 1/2/X7 Cost $ 781,200 12/31/X7 Dividends $33,600 12/31/X7 Investment Income 62,160 12/31/X8 Dividends 42,000 12/31/X8 Investment Income 76,440 12/31/X9 Dividends 50,400 12/31/X9 Investment income 94,080 Balance $ 887,880 XYZ usually declares half of its profits as dividends. ABC uses the entity theory method to consolidate its subsidiary. 1) Calculate the non-controlling interest amounts for ABCs 20X9 i. consolidated income statement, and ii. consolidated balance sheet. 2) Calculate the amount of goodwill that should appear on ABCs 20X9 consolidated balance sheet

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