History Bookmarks Window Help chegg.com Final Heaven ...rop Exclusive Apple iCloud Bing Wikipedia Google Facebook Twitter Lim When Life Gives You Lemons...-Danica Smile My Drive Google Drive gg Study TEXTBOOK SOLUTIONS EXPERT 0&A Problem On January 1, 2013, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor's shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the company's financial records by $30,000. This patent had a 5-year remaining life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests. Bandmor earns net income and declares cash dividends as follows Year 2013 2014 2015 Net Income Dividends 75,000 96,000 110,000 39,000 44,000 60,000 On December 31, 2015, Telconnect owes $22,000 to Bandmor a. If Telconnect has applied the equity met thod, whtt consolidation entries are needed as of December 31, 2015? b. If Te|connect has applied the initial value method, what EntryC is needed for a 2015 consolidation? c. If Telconnect has applied the partial equity method, what Entry "C is needed for a 2015 consolidation? d. What noncontroling interest balances will appear in consolidated financial statements for 2015? 430 2 8 History Bookmarks Window Help chegg.com Final Heaven ...rop Exclusive Apple iCloud Bing Wikipedia Google Facebook Twitter Lim When Life Gives You Lemons...-Danica Smile My Drive Google Drive gg Study TEXTBOOK SOLUTIONS EXPERT 0&A Problem On January 1, 2013, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor's shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the company's financial records by $30,000. This patent had a 5-year remaining life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests. Bandmor earns net income and declares cash dividends as follows Year 2013 2014 2015 Net Income Dividends 75,000 96,000 110,000 39,000 44,000 60,000 On December 31, 2015, Telconnect owes $22,000 to Bandmor a. If Telconnect has applied the equity met thod, whtt consolidation entries are needed as of December 31, 2015? b. If Te|connect has applied the initial value method, what EntryC is needed for a 2015 consolidation? c. If Telconnect has applied the partial equity method, what Entry "C is needed for a 2015 consolidation? d. What noncontroling interest balances will appear in consolidated financial statements for 2015? 430 2 8
