Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need help with Part B section A, I have all the figures except NCI in NI of Station comp, Investment in Station company,

image text in transcribed

image text in transcribed

I just need help with Part B section A, I have all the figures except NCI in NI of Station comp, Investment in Station company, and NCI in NA of Station comp.

Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20x1, for $513,900. At the time of the combination, Station reported common stock outstanding of $128,000 and retained earnings of $383,000, and the fair value of the noncontrolling interest was $57,100. The book value of Station's net assets approximated market value except for patents that had a market value of $60,000 more than their book value. The patents had a remaining economic life of ten years at the date of the business combination. Station reported net income of $80,000 and paid dividends of $24,000 during 20X1. Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Balance in investment account b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Answer is complete and correct. Balance in investment account $ 558,900 b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event Accounts Debit Credit A 1 Common stock Retained earnings Income from Station Company 128,000 383,000 72,000 NCI in NI of Station Company Dividends declared Investment in Station Company NCI in NA of Station Company OOOOOOO 24,000 558,900 X 57,100 X B 2 6,000 Amortization Expense Income from Station Company NCI in Nl of Station Company 5,400 600 3 54,000 Patents Investment in Station Company NCI IN NA of Station Company OOO 48,600 5,400

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Organizing Smart Buildings And CitiesPromoting Innovation And Participation

Authors: Elisabetta Magnaghi, VĂ©ronique Flambard, Daniela Mancini, Julie Jacques, Nicolas Gouvy

10th Edition

3030606066, 9783030606060

More Books

Students also viewed these Accounting questions

Question

What is a modal triggering event?

Answered: 1 week ago