Question
For this problem, i only need help calculating the Net Income attributable to noncontrolling interest for the Consolidated Income Statement below. I placed a question
For this problem, i only need help calculating the "Net Income attributable to noncontrolling interest" for the Consolidated Income Statement below. I placed a question mark next to it. If someone can show me the steps on how to find it that would be great.
Q: Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018:
Gibson | Davis | ||||||
Sales | $ | (739,000 | ) | $ | (442,500 | ) | |
Cost of goods sold | 320,000 | 189,000 | |||||
Operating expenses | 253,000 | 69,500 | |||||
Dividend income | (18,000 | ) | 0 | ||||
Net income | $ | (184,000 | ) | $ | (184,000 | ) | |
Retained earnings, 1/1/18 | $ | (737,000 | ) | $ | (401,000 | ) | |
Net income | (184,000 | ) | (184,000 | ) | |||
Dividends declared | 70,000 | 30,000 | |||||
Retained earnings, 12/31/18 | $ | (851,000 | ) | $ | (555,000 | ) | |
Cash and receivables | $ | 256,600 | $ | 146,000 | |||
Inventory | 526,000 | 217,000 | |||||
Investment in Davis | 548,400 | 0 | |||||
Buildings (net) | 554,000 | 627,000 | |||||
Equipment (net) | 405,000 | 453,000 | |||||
Total assets | $ | 2,290,000 | $ | 1,443,000 | |||
Liabilities | $ | (809,000 | ) | $ | (548,000 | ) | |
Common stock | (630,000 | ) | (340,000 | ) | |||
Retained earnings, 12/31/18 | (851,000 | ) | (555,000 | ) | |||
Total liabilities and stockholders' equity | $ | (2,290,000 | ) | $ | (1,443,000 | ) | |
Gibson acquired 60 percent of Davis on April 1, 2018, for $548,400. On that date, equipment owned by Davis (with a five-year remaining life) was overvalued by $45,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $365,600. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2018.
Prepare a consolidated income statement for the year ending December 31, 2018
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