Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please bold the numbers that go in to A. B. C. D. so i know what number goes in each question On January 1, 2021,

please bold the numbers that go in to A. B. C. D. so i know what number goes in each question
image text in transcribed
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1.712,000 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $428,000. Seidel's acquisition-date total book value was $1700,000. The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets a trademark with an indefinite life and estimated fair value of $245,000 and several customer relationships estimated to be worth $180,000 with four-year remaining lives, Any remaining acquisition date fair value in the Seidel acquisition was considered goodwill. During 2021, Seidel reported $172,000 net income and declared and paid dividends totaling $50,000. Also in 2021, Ackerman reported $350,000 net income, but neither declared nor paid dividends. a. What amount should Ackerman assign to the 20 percent noncontrolling interest of Seldel at the acquisition date? b. How much of 2021 consolidated net income should be allocated to the noncontrolling interest? c. What amount of 2021 dividends should be allocated to the noncontrolling interest? d. What amount of noncontrolling interest should appear in the owners' equity section of Ackerman's consolidated balance sheet at December 31, 2021? Value to be assigned to noncontrolling interest (NCI) at acquisition date b. Consolidated net income allocation to noncontrolling interest c. Dividend allocation to noncontrolling interest d. Non controlling interest in Seidel

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

Management Accounting

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Susan Wolcott

2nd Edition

1742166148, 978-1742166148

More Books

Students also viewed these Accounting questions

Question

Explain the focus of safety programs.

Answered: 1 week ago

Question

Describe the consequences of musculoskeletal disorders.

Answered: 1 week ago