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On January 1, 2019, Sanita purchased 70% of the outstanding common stock of Mimosa. Sanita paid $140,000 for the shares and determined that the fair
On January 1, 2019, Sanita purchased 70% of the outstanding common stock of Mimosa. Sanita paid $140,000 for the shares and determined that the fair value of all recorded Miomosa assets and liabilities approximated their book values, with the exception of a Patent that was not recorded and had a fair value of $10,000, and an expected remaining useful life of 5 years. At the time of purchase, Mimosa had stockholders' equity consisting of capital stock amounting to $20,000 and retained earnings amounting to $80,000. Any remaining excess fair value was attributed to goodwill. The separate financial statements at December 31, 2019 appear in the first two columns of the consolidation workpapers shown below.
Required:
Provide the following consolidated values showing the calculations (WHICH CONSTITUTE 50% OF THE GRADE)
a) Consolidated Net Income
b) Non-controlling Interest share of Consolidated Net income
c) Consolidated retained earnings as at 31/12/2019
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