McLaughlin, Inc acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020 Annual amortization of $12,000 relates to the first acquisition Ellis reports the following figures for 2020 Revenues $ 500,000 Expenses 350,000 Retained earnings, 1 1 20 3,500,000 Dividends paid 40,000 Common stock 400,000 Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses incurred evenly through the year) during 2020 Required Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020

Question

McLaughlin, Inc  acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020  Annual amortization of $12,000 relates to the first acquisition  Ellis reports the following figures for 2020  Revenues $ 500,000 Expenses 350,000 Retained earnings, 1 1 20 3,500,000 Dividends paid 40,000 Common stock 400,000 Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses  incurred evenly through the year) during 2020  Required  Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020

Accepted Answer

The Answer is in the image, click to view ...

Question

McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020. Annual amortization of $12,000

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question


Revenues	$	500,000
Expenses		350,000
Retained earnings, 1/1/20		3,500,000
Dividends paid		40,000
Common stock		400,000