Hello, I have gone through this question but I want to see if I have done it correctly.
On April 1, Year 7, Princeton Corp. purchased 70% of the ordinary shares of Simon Ltd. for $1,036,000. On this same date, Simon purchased 60% of the ordinary shares of Fraser Inc. for $1,080,000. On April 1, Year 7, the acquisition differentials from the two investments were allocated entirely to broadcast rights to be amortized over 10 years. The cost method is being used to account for both investments. During Year 7, the three companies sold merchandise to each other. On December 31, Year 7, the inventory of Princeton contained merchandise on which Simon recorded a gross margin of $55,500. On the same date, the inventory of Fraser contained merchandise on which Princeton recorded a gross margin of $19,300. Assume a 40% tax rate. The following information is available: Ordinary shares Retained earnings-Jan. 1, Year 7 Profit-Year 7% Dividends declared-Dec. 31 Princeton $ 600,000 711,000 137,000 25,000 Simon $ 550,000 411,000 232,000 30,000 Fraser $ 300,000 359,000 216,000 70,000 * Earned evenly throughout the year. Required: Calculate the following: (a) Consolidated profit attributable to Princeton's shareholders for Year 7. (Round intermediate calculations to nearest whole dollar value. Omit $ sign in your response.) Consolidated profit $ 183107 (b) Non-controlling interest as at December 31, Year 7. (Round intermediate calculations to nearest whole dollar value. Omit $ sign in your response.) Non-controlling interest 1192913 (c) Consolidated broadcast rights as at December 31, Year 7. (Round intermediate calculations to nearest whole dollar value. Omit $ sign in your response.) Consolidated broadcast rights $ 1431900 (d) Profit on Princeton's separate-entity income statement, assuming that Princeton was a private company, uses ASPE, and uses the equity method to report its investments in subsidiaries. (Round your intermediate calculations and final answer to nearest whole dollar value. Omit $ sign in your response.) Profit on Princeton's separate-entity income $ 183107 On April 1, Year 7, Princeton Corp. purchased 70% of the ordinary shares of Simon Ltd. for $1,036,000. On this same date, Simon purchased 60% of the ordinary shares of Fraser Inc. for $1,080,000. On April 1, Year 7, the acquisition differentials from the two investments were allocated entirely to broadcast rights to be amortized over 10 years. The cost method is being used to account for both investments. During Year 7, the three companies sold merchandise to each other. On December 31, Year 7, the inventory of Princeton contained merchandise on which Simon recorded a gross margin of $55,500. On the same date, the inventory of Fraser contained merchandise on which Princeton recorded a gross margin of $19,300. Assume a 40% tax rate. The following information is available: Ordinary shares Retained earnings-Jan. 1, Year 7 Profit-Year 7% Dividends declared-Dec. 31 Princeton $ 600,000 711,000 137,000 25,000 Simon $ 550,000 411,000 232,000 30,000 Fraser $ 300,000 359,000 216,000 70,000 * Earned evenly throughout the year. Required: Calculate the following: (a) Consolidated profit attributable to Princeton's shareholders for Year 7. (Round intermediate calculations to nearest whole dollar value. Omit $ sign in your response.) Consolidated profit $ 183107 (b) Non-controlling interest as at December 31, Year 7. (Round intermediate calculations to nearest whole dollar value. Omit $ sign in your response.) Non-controlling interest 1192913 (c) Consolidated broadcast rights as at December 31, Year 7. (Round intermediate calculations to nearest whole dollar value. Omit $ sign in your response.) Consolidated broadcast rights $ 1431900 (d) Profit on Princeton's separate-entity income statement, assuming that Princeton was a private company, uses ASPE, and uses the equity method to report its investments in subsidiaries. (Round your intermediate calculations and final answer to nearest whole dollar value. Omit $ sign in your response.) Profit on Princeton's separate-entity income $ 183107
