Question
On Jan 1, 2015, the 90% owned SUB issued a $500,000 8% 10 year Bond Payable to INDEPENDENT 3rd Party Investors for 95%. Interest is
On Jan 1, 2015, the 90% owned SUB issued a $500,000 8% 10 year Bond Payable to INDEPENDENT 3rd Party Investors for 95%. Interest is payable annually on Dec 31st of each year. On Jan 1, 2018, the PARENT acquires the Sub’s Bonds from the 3rd party investors for $518,000 cash. During 2018 the SUB reported a $250,000 Net Income and the Parent a $400,000 Net Income which includes their 90% share of the Sub’s Income.
What is the NCI's share of the Consolidated Net Income after the Elimination and Adjusting Entries for 2018?
Step by Step Solution
3.54 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
1Jan15 Subsdiary issued 8 500000 bond with duration of 10 years 500000 Total issue size Less I...
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
