Question
Consolidated Net Income The following information relates to Caleres Inc. and its 51 percent-owned subsidiary, B&H Footwear, for fiscal 2019 (in thousands). Caleres Inc.s net
Consolidated Net Income
The following information relates to Caleres Inc. and its 51 percent-owned subsidiary, B&H Footwear, for fiscal 2019 (in thousands).
Caleres Inc.s net income from its own operations | $50,000 |
B&H Footwears net income from its own operations | 20,000 |
Dividends paid by B&H Footwear | 8,000 |
Acquisition date overvaluation of inventory sold in fiscal 2019 | 900 |
Reduction in depreciation expense on equipment overvalued at acquisition date | 300 |
Amortization of discount on long-term debt created at acquisition date | 100 |
Impairment loss on in-process R&D capitalized at acquisition date | 600 |
Confirmed downstream inventory profit in B&H Footwears beginning inventory | 700 |
Unconfirmed downstream inventory profit in B&H Footwears ending inventory | 400 |
Downstream loss on January 2 sale of patent to B&H Footwear; 5-year life | 500 |
Required
a. Calares uses the complete equity method to account for its investment in B&H on its own books. Prepare a schedule calculating equity in net income of B&H, appearing on Caleres books, and noncontrolling interest in consolidated net income, appearing on the consolidated income statement for fiscal 2019 (in thousands).
Use negative signs with answers that reduce net income amounts.
Please show work
(in thousands) | Total | Equity in NI | Noncontrolling Interest in NI |
B&H reported net income | Answer
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Revaluation write-off: cost of goods sold | Answer
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Revaluation write-off: depreciation expense | Answer
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Revaluation write-off: interest expense | Answer
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Revaluation write-off: IPR&D impairment | Answer
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Intercompany profits: downstream beginning inventory | Answer
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Intercompany profits: downstream ending inventory | Answer
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Intercompany profits: downstream loss on patent sale | Answer
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Intercompany profits: confirmed downstream patent loss | Answer
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