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Pell Company acquires 8 0 % of Demers Company for $ 5 0 0 , 0 0 0 on January 1 , 2 0 X
Pell Company acquires of Demers Company for $ on January X Demers reported common stock of $ and retained earnings of $ on that date. Demers equipment was undervalued by $ and buildings were undervalued by $ each having a year remaining useful life. Any excess consideration paid over fair value was attributed to goodwill. The price paid for the ownership approximated fair value ie the NonControlling Interest fair value was implied by Pells purchase price Pell uses the equity method to account for their investment. During X and X Demers reported the following totals for net income and dividend declarations: Demers Company XX Net Income $ $ Dividends Declared $ $ During and Pell reported the following totals for net income and dividend declarations: Pell Company XX Net Income $ $ Dividends Declared $ $ Requirement # Compute the balance of Pells Investment in Demers account in Pells internal accounting records as of December X Requirement # Compute the total consolidated Net Income for the yearended December X Also determine the portion of consolidated net income allocated to the NonControlling Interest, and the portion allocated to the Controlling Interest. Requirement # Compute the balance of the NonControlling Interest reported in the equity section of the consolidated financial statements as of December X Requirement # Compute the balance that would be reported for the Investment in Demers asset account in the consolidated balance sheet as of December X
Pell Company acquires of Demers Company for $ on January X Demers reported common stock of $ and retained earnings of $ on that date. Demers equipment was undervalued by $ and buildings were undervalued by $ each having a year remaining useful life. Any excess consideration paid over fair value was attributed to goodwill. The price paid for the ownership approximated fair value ie the NonControlling Interest fair value was implied by Pells purchase price Pell uses the equity method to account for their investment.
During X and X Demers reported the following totals for net income and dividend declarations:
Demers Company XX
Net Income $ $
Dividends Declared $ $
During and Pell reported the following totals for net income and dividend declarations:
Pell Company XX
Net Income $ $
Dividends Declared $ $
Requirement #
Compute the balance of Pells Investment in Demers account in Pells internal accounting records as of December X
Requirement #
Compute the total consolidated Net Income for the yearended December X Also determine the portion of consolidated net income allocated to the NonControlling Interest, and the portion allocated to the Controlling Interest.
Requirement #
Compute the balance of the NonControlling Interest reported in the equity section of the consolidated financial statements as of December X
Requirement #
Compute the balance that would be reported for the Investment in Demers asset account in the consolidated balance sheet as of December X
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