Question
On January 2, 2019, Polo Corporation purchased 80% of Seed Company's ordinary shares for $216,000. A depreciable asset with an economic life of ten years
On January 2, 2019, Polo Corporation purchased 80% of Seed Company's ordinary shares for $216,000. A depreciable asset with an economic life of ten years is overvalued by $50,000. Non-controlling interest is measured at its fair value of $56,000. On the date of acquisition, Seed reported ordinary shares of $80,000 and retained earnings of $140,000, and Polo reported ordinary shares of 350,000 and retained earnings of $520,000. On December 31, 2019, Seed reported net income of $35,000 and paid dividends of $15,000. Polo reported earnings from its separate operations of $95,000, and paid dividends of $46,000.
Required:
- What is the equity holder's parent Retained Earnings on December 31, 2019?
- How much should be presented as non-controlling interest consolidated statement of financial position on December 31, 2019?
- What is the consolidated net income attributable to parent shareholder's on December 31, 2019?
- How much is consolidated net income on December 31, 2019?
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