Question
On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S Corp. for $1,800,000. On the date of acquisition, S's shareholders'
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On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S Corp. for $1,800,000. On the date of acquisition, S's shareholders' equity was as follows: Preferred shares, 8%, cumulative, callable at $102, 1,000 shares outstanding $ 100,000 Common shares, no par value, 100,000 shares outstanding 100 Retained earnings 1,823,000 Total 1,923,100
At the time of acquisition preferred shares had one year of dividends in arrears.
Any purchase price discrepancy is allocated to patent with an infinite life. During Year 9, S earned a net income of $500,000 and no dividends were paid out.
What is the total non-controlling interests on the consolidated Statement of Financial Position as at January 1, Year 9?
$1,310,000
$1,300,000
$110,000
$1,202,000
On January 1, Year 9, P Inc. purchased 60,000 of the common shares of S Corp. for $1,800,000. On the date of acquisition, S's shareholders' equity was as follows: Preferred shares, 8%, cumulative, callable at $102, 1,000 shares outstanding $ 100,000 Common shares, no par value, 100,000 shares outstanding 100 Retained earnings 1,823,000 Total 1,923,100
At the time of acquisition preferred shares had one year of dividends in arrears.
Any purchase price discrepancy is allocated to patent with an infinite life. During Year 9, S earned a net income of $500,000 and no dividends were paid out.
What is the total non-controlling interests on the consolidated Statement of Financial Position as at January 1, Year 9?
| $1,310,000 | ||
| $1,300,000 | ||
| $110,000 | ||
| $1,202,000 |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
