Question
On January 2, 2019, Parca Corporation acquired 70 percent interest in Saif Corporation on for $2,800,000. Parca's capital stock and retained earnings were $7,200,000 and
On January 2, 2019, Parca Corporation acquired 70 percent interest in Saif Corporation on for $2,800,000. Parca's capital stock and retained earnings were $7,200,000 and $3,200,000 respectively, while Saif's capital stock and retained earnings were $2,000,000 and $400,000 respectively.
Net income and dividends for 2019 for the affiliated companies were as follows: (in thousands):
Parca Saif
Net income $1,200 $360
Dividends declared 720 200
Dividends payable December 31, 2019 360 100
Required: Calculate the amounts that should appear in the consolidated balance sheet on
December 31, 2019 for the following items:
- Capital stock c. Noncontrolling interest
b. Goodwill d. Dividends payable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started