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both questions please QUESTION 31 On January 1, Year 1, Parent bought 90% of the shares of Kid for $90 million. At the time, the
both questions please
QUESTION 31 On January 1, Year 1, Parent bought 90% of the shares of Kid for $90 million. At the time, the fair value of the 10% noncontrolling interest was $8 million. The equity of Kid on the date of acquisition was $80 million. The book value of its common stock =$10 million and retained earnings =$70 million. All assets and liabilities had fair value equal to book value, except Son owned equipment with a fair value $25 million and a book value of $15 million. It has 5 years of remaining life and no salvage value. During Year 1, Kid reported revenues of $6 million and expenses of $4 million. It declared dividends of $500,000. Parent had net income from its own operations (ignoring its interest in Son) of $60 million. As of the date of acquisition, what consolidation entry or entries are needed? Show your work. (6 points) (Hint - these would be entries S and A in the book) (6 points) QUESTION 32 Use the same information as the previous question. (4 points). At the end of the year, what is the proper amount of the noncontrolling interest in the consolidated balance sheet? (4 points) QUESTION 31 On January 1, Year 1, Parent bought 90% of the shares of Kid for $90 million. At the time, the fair value of the 10% noncontrolling interest was $8 million. The equity of Kid on the date of acquisition was $80 million. The book value of its common stock =$10 million and retained earnings =$70 million. All assets and liabilities had fair value equal to book value, except Son owned equipment with a fair value $25 million and a book value of $15 million. It has 5 years of remaining life and no salvage value. During Year 1, Kid reported revenues of $6 million and expenses of $4 million. It declared dividends of $500,000. Parent had net income from its own operations (ignoring its interest in Son) of $60 million. As of the date of acquisition, what consolidation entry or entries are needed? Show your work. (6 points) (Hint - these would be entries S and A in the book) (6 points) QUESTION 32 Use the same information as the previous question. (4 points). At the end of the year, what is the proper amount of the noncontrolling interest in the consolidated balance sheet? (4 points)Step by Step Solution
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