Question
On January 1, 2019 Annick Co. acquired 60% of Noah Inc. by paying $560,000. The fair value of noncontrolling interest was $340,000. Noah reported common
On January 1, 2019 Annick Co. acquired 60% of Noah Inc. by paying $560,000. The fair value of noncontrolling interest was $340,000. Noah reported common stock on that date of $420,000 with retained earnings of $250,000. A building was undervalued on Noah's financial records by $28,000. This building had a ten-year remaining life. Unrecorded copyrights with fair values of $72,000 were to be recognized and amortized over 20 years.
Noah earned income and paid cash dividends as follows:
Net income | Dividends paid | |
2019 | $105,000 | $45,600 |
2020 | 134,400 | 61,600 |
A.) Determine how much goodwill that would be allocated between the controlling and non-controlling interest.
B.) What is the ending balance of the non-controlling interest in the subsidiary at December 31, 2019?
C.) What is the consolidated balance of the building's account at December 31, 2019
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