Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Piug Products owns 80 percent of the stock of Spark. Fiter Company. Which it acquifed at underiving book value on Auggust 30,206, At that dote,

image text in transcribed
image text in transcribed
Piug Products owns 80 percent of the stock of Spark. Fiter Company. Which it acquifed at underiving book value on Auggust 30,206, At that dote, the fair value of the noncontroiling intorest was equal to 20 percent of the book value of Spark Fstec. Summarized trial. bslance data for the two companies as of Decomber 31,208, aie as follows: On January 1. 20x8. Plug's imventory cantained fillers purchased for $73,000 from Spark Filter, which had produced the fiters for $53,000, In 20x8, Spark Fiter spent \$113,000 to produce additional fiters, which it sold to Plug for $155,642. By December 31,208, Plug had sold alf fiters that had been on hand Jonuary 1, 20x8, but continued te hoid in inventory 546,692 af the 208 purchase from Spark Fiter. Aequitred; A. Prepare as consalidation entries needed to complete a consoldation worksheet for 208 Notes if no entry is required for a transactionievent, seleet "No journal entry required" in the first account fleid. b. Compute consolidated net income and income assigned to the controlling interest in the 208 consolidated income statement. c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31,208. Piug Products owns 80 percent of the stock of Spark. Fiter Company. Which it acquifed at underiving book value on Auggust 30,206, At that dote, the fair value of the noncontroiling intorest was equal to 20 percent of the book value of Spark Fstec. Summarized trial. bslance data for the two companies as of Decomber 31,208, aie as follows: On January 1. 20x8. Plug's imventory cantained fillers purchased for $73,000 from Spark Filter, which had produced the fiters for $53,000, In 20x8, Spark Fiter spent \$113,000 to produce additional fiters, which it sold to Plug for $155,642. By December 31,208, Plug had sold alf fiters that had been on hand Jonuary 1, 20x8, but continued te hoid in inventory 546,692 af the 208 purchase from Spark Fiter. Aequitred; A. Prepare as consalidation entries needed to complete a consoldation worksheet for 208 Notes if no entry is required for a transactionievent, seleet "No journal entry required" in the first account fleid. b. Compute consolidated net income and income assigned to the controlling interest in the 208 consolidated income statement. c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31,208

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Software Audit Guide

Authors: John W. Helgeson

1st Edition

0873897730, 978-0873897730

More Books

Students also viewed these Accounting questions

Question

Develop clear policy statements.

Answered: 1 week ago

Question

Draft a business plan.

Answered: 1 week ago

Question

Describe the guidelines for appropriate use of the direct plan.

Answered: 1 week ago