Part 2: What amount would be reported on the consolidate financial statements for Brown Corporation on December 31, 2020?

- Consolidated Net Income [f]

-NCI interest in Net Income of Rust [g]

-Controlling interest in Net Income of Rust [h]

-Total Assets [i]

-Total liabilities [ji]

-Common Stock [k]

-APIC [l]

-Retained earnings, December 31 [ml]

-NCI in Net Assets of Rust [n]

QUESTION #15 On January 1, 2020, Brown Corporation acquired 90 percent of Rust Company's voting stock, at underlying book value. At that time, Rust's Commons Stock vaue was $75,000 and the R/E was $70,000. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Rust at that date. Brown uses the equity method in accounting for its ownership of Rust. On December 31, 2020, the trial balances of the two companies are as follows: Credit Rust Company Debit Credit $145,000 225,000 Brown Corporation Debit $225,500 300,000 144,000 30,000 180,000 40,000 25,000 85,000 10,000 Current Assets Depreciable Assets Investment in Rust Company Depreciation Expense Other Expenses Dividends declared Accumulated Depreciation Current Liabilities Long-term Debt Common Stock APIC Retained earnings Sales Income from Rust Totals 75,000 45,000 75,000 100,000 75,000 282,500 253,500 13,500 $919,500 100,000 20,000 90,000 75,000 0 80,000 125,000 $919,500 $490,000 $490,000 QUESTION #15 On January 1, 2020, Brown Corporation acquired 90 percent of Rust Company's voting stock, at underlying book value. At that time, Rust's Commons Stock vaue was $75,000 and the R/E was $70,000. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Rust at that date. Brown uses the equity method in accounting for its ownership of Rust. On December 31, 2020, the trial balances of the two companies are as follows: Credit Rust Company Debit Credit $145,000 225,000 Brown Corporation Debit $225,500 300,000 144,000 30,000 180,000 40,000 25,000 85,000 10,000 Current Assets Depreciable Assets Investment in Rust Company Depreciation Expense Other Expenses Dividends declared Accumulated Depreciation Current Liabilities Long-term Debt Common Stock APIC Retained earnings Sales Income from Rust Totals 75,000 45,000 75,000 100,000 75,000 282,500 253,500 13,500 $919,500 100,000 20,000 90,000 75,000 0 80,000 125,000 $919,500 $490,000 $490,000