Question
On January 1, 2016, Pantheon Company purchased 80% of Sardis Company $10 par value common stock for $975,000 cash. The price paid for the 80%
On January 1, 2016, Pantheon Company purchased 80% of Sardis Company $10 par value common stock for $975,000 cash. The price paid for the 80% interest was proportionately representative of the fair value of all of Sardis' shares. On the purchase date, the carrying amount of Sardis's net assets was 1million. The fair values of all assets acquired and liabilities assumed were all the same as their carrying values on Sardis' balance sheet except for plant assets (net) the fair value of which was $100,000 in excess of the carrying value. The remaining useful life is 5 years. The balance in Sardis' equity accounts was as follows: common stock, $10 par - $100,000. Additional Paid in Capital - $600,000; and retained earnings - $300,000
For the year ended December 31, 2016, Sardis had net income of $190,000 and paid cash dividends totaling $125,000. For the year ended December 31, 2017, Sardis had net income of $200,000 and paid cash dividends totaling $125,000. Pantheon had net income (exclusive of equity in sub's earnings) of $500,000 in 2017.
Compute the amounts that Pantheon should report in its December 31, 2017, consolidated financial statements for the following items
a) Net income attributable to the controlling interest
b) Net income attributable to the non-controlling interest
c) Non-controlling interest
d) Goodwill (assume no impairment loss)
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