Question
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $25,900 is applicable on the allocations of Rock's acquisition-date business
Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2016. Annual amortization of $25,900 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2017, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $12,800 per year. For 2018, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income.
| Separate Operating Income | Dividends Declared | |||
| Boulder | $391,400 | $135,000 | ||
| Rock | 135,400 | 21,000 | ||
| Stone | 198,000 | 42,000 | ||
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What is consolidated net income for 2018?
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How is 2018 consolidated net income distributed to the controlling and noncontrolling interests?
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Tax Audit Techniques In Cash Based Economies A Practical Guide
Authors: Sheikh Sajjad Hassan
2nd Edition
0955354048, 978-0955354045
