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Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisition date, the

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Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisition date, the identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of $200,000 and no recorded book value. On the date of acquisition, the patent had five years of remaining useful life and the parent company amortize its intangible assets using straight line amortization. During the year ended December 31, 2019, the subsidiary recorded sales to the parent in the amount of $240,000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25. Approximately 30% of this merchandise remains in the parent's inventory at December 31, 2019. The following summarized pre-consolidation financial statements are for the parent and the subsidiary for the year ended December 31, 2019 Investerinvestee 2010 1 200 000 000 5130500 320.000 soddins Retained earning statement: BOY retained a s 51.48000 1 80.000 0000 .000 120.000 Dividends declared EOV retained 12.000 11600 51.500.000 $200,000 inventary 55.296.000 120.000 Remedies abes stockholders' equity 510.065.600 5800.000 T Based on this information determine the balance for oncontro ng interest $116.400 564.000 50.000 Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2018. On the acquisition date, the identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of $200,000 and no recorded book value. On the date of acquisition, the patent had five years of remaining useful life and the parent company amortize its intangible assets using straight line amortization. During the year ended December 31, 2019, the subsidiary recorded sales to the parent in the amount of $240,000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25. Approximately 30% of this merchandise remains in the parent's inventory at December 31, 2019. The following summarized pre-consolidation financial statements are for the parent and the subsidiary for the year ended December 31, 2019 Investerinvestee 2010 1 200 000 000 5130500 320.000 soddins Retained earning statement: BOY retained a s 51.48000 1 80.000 0000 .000 120.000 Dividends declared EOV retained 12.000 11600 51.500.000 $200,000 inventary 55.296.000 120.000 Remedies abes stockholders' equity 510.065.600 5800.000 T Based on this information determine the balance for oncontro ng interest $116.400 564.000 50.000

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