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Exercise 3-15 (Algo) Computation of Consolidated Net Income LO 3-3, 3-4 Phone Corporation owns 75 percent of Smart Company's common stock, acquired at underlying book

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Exercise 3-15 (Algo) Computation of Consolidated Net Income LO 3-3, 3-4 Phone Corporation owns 75 percent of Smart Company's common stock, acquired at underlying book value on January 1, 20X4. At the acquistion date, the book values and foir values of 5ms rt's assets and liabaties were equal, and the fair value of the noncontroling interest was equal to 25 percent of the total bock value of Smart. The income statements for Phone and Smart for 204 include the following amounts: Phone uses the cost method in accounting for its ownership of 5 mart 5 mart paid dividends of $14,000 in 204 Required: a. What amount would Phone repon in its income statement as income from is investment in Smart if Phone used equily-method accounting? b. What amount of income should be assigned to noncontrolling interest in the consolidated income statement for 204 ? c. What amount should Phone report as consolidated net income for 204 ? Complete this question by entering your answers in the tabs below. What amount would phone report in its income statement as income from its investrept in 5 murt if phone used equity. method acosonting? Exercise 3-15 (Algo) Computation of Consolidated Net Income LO 3-3, 3-4 Phone Corporation owns 75 percent of Smart Company's common stock, acquired at underlying book value on January 1, 20X4. At the acquistion date, the book values and foir values of 5ms rt's assets and liabaties were equal, and the fair value of the noncontroling interest was equal to 25 percent of the total bock value of Smart. The income statements for Phone and Smart for 204 include the following amounts: Phone uses the cost method in accounting for its ownership of 5 mart 5 mart paid dividends of $14,000 in 204 Required: a. What amount would Phone repon in its income statement as income from is investment in Smart if Phone used equily-method accounting? b. What amount of income should be assigned to noncontrolling interest in the consolidated income statement for 204 ? c. What amount should Phone report as consolidated net income for 204 ? Complete this question by entering your answers in the tabs below. What amount would phone report in its income statement as income from its investrept in 5 murt if phone used equity. method acosonting

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