Question
On January 1, 2016, Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock at book value. The fair value of the noncontrolling interest was
On January 1, 2016, Wilhelm Corporation acquired 90 percent of Kaiser Company's voting stock at book value. The fair value of the noncontrolling interest was equal to 10% of the book value of Kaiser at that date. Wilhelm uses the equit method (with consolidation) in accountig for its ownership of Kaiser. On December 31, 2016, the trial balances of the two companies are as follows: (please note that the retained earnings accounts of both companies have not yet been adjusted for 2016 activity and are stated as they were on January 1, 2016)
| Wilhelm Corporation |
| Kaiser Company |
|
Item | Debit | Credit | Debit | Credit |
Current Assets | $200,000 |
| $140,000 |
|
Depreciable Assets | 350,000 |
| 250,000 |
|
Investment in Kaiser Company Stock | 162,000 |
|
|
|
Depreciation Expense | 27,000 |
| 10,000 |
|
Other Expenses | 95,000 |
| 60,000 |
|
Dividends Declared | 20,000 |
| 10,000 |
|
Accumulated Depreciation |
| $118,000 |
| $80,000 |
Current Liabilities |
| 100,000 |
| 80,000 |
Long-Term Debt |
| 100,000 |
| 50,000
|
Common Stock |
| 100,000 |
| 50,000 |
Retained Earnings |
| 150,000 |
| 100,000 |
Sales |
| 250,000 |
| 110,000 |
Income from Subsidiary |
| 36,000 |
|
|
| $854,000 | $854,000 | $470,000 | $470,000 |
A. What amount would be reported as total assets in the consolidated balance sheet at December 31, 2016?
B. What amount would be reported as total liabilities in the consolidated balance sheet at December 31, 2016?
C. What amount would be reported as retained earnings in the consolidated balance sheet prepared at December 31, 2016?
D. Based on the preceding information, what amount would be reported as noncontrolling interest in the consolidated balance sheet at December 31, 2016?
E. Based on the preceding information, what amount would be reported as total stockholder's equit in the consolidated balance sheet at December 31, 2016?
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