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Can someone help me figure out the noncontrolling interest in NI of Station Company, Investment in Station Company, & noncontrolling interest in NA of Station
Can someone help me figure out the noncontrolling interest in NI of Station Company, Investment in Station Company, & noncontrolling interest in NA of Station Company?
Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $511,200. At the time of the combination, Station reported common stock outstanding of $120,000 and retained earnings of $388,000, and the fair value of the noncontrolling interest was $56,800. The book value of Station's net assets approximated market value except for patents that had a market value of $60,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Station reported net income of $80,000 and paid dividends of $21,000 during 20X1. Consolidation Worksheet Entries A B > Record the basic consolidation entry. b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Event Accounts Debit Credit A 1 Common stock Retained earnings Income from Station Company NCI in NI of Station Company Dividends declared Investment in Station Company NCI in NA of Station Company OOOOOOO 120,000 388,000 72,000 9,000 X 21,000 511,200 X 56,800 XStep by Step Solution
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