Question
Please help me show calculations and journal entries for Goodwill allocation between Parent and NCI Ending investment balances of Parent investment in Subsidiary and NCIs
Please help me show calculations and journal entries for
Goodwill allocation between Parent and NCI
Ending investment balances of Parent investment in Subsidiary and NCIs investment in Subsidiary
The amount of annual excess amortization and the ending net amount for assets
The allocation of Subsidiary net income to Parent and NCI
The allocation of dividends declared by the Subsidiary to Parent and NCI
Deferred and subsequent recognition of gross profit from intra-entity sales for the consolidation entries needed in preparing the consolidation worksheet
On 1/1/Y1, the Parent paid $1,200,000 cash to acquire 80% of voting common stock while the Subsidiary's book value was $925,000 and fair market value (FMV) was $1,500,000. The subsidiary has neither issued nor reacquired any of its own treasury stock since 1/1/Y1 All the Subsidiary's book value of assets and liabilities were the same as the FMV on 1/1/Y1, except for the patent account, which was undervalued by $350,000 with a fiveyear remaining life. Separate financial statements for these two companies as of 12/31/Y3 are: Subsidiary regularly sells inventory to Parent as records show below: The gross profit percentage for the intra-entity transfers are set as 25%,28%, and 25% for the three years. No goodwill impairments from this acquisition have occurred. Parent loaned Subsidiary $25,000 for a three-year term on 1/1/Y3. On 1/1/Y1, the Parent paid $1,200,000 cash to acquire 80% of voting common stock while the Subsidiary's book value was $925,000 and fair market value (FMV) was $1,500,000. The subsidiary has neither issued nor reacquired any of its own treasury stock since 1/1/Y1 All the Subsidiary's book value of assets and liabilities were the same as the FMV on 1/1/Y1, except for the patent account, which was undervalued by $350,000 with a fiveyear remaining life. Separate financial statements for these two companies as of 12/31/Y3 are: Subsidiary regularly sells inventory to Parent as records show below: The gross profit percentage for the intra-entity transfers are set as 25%,28%, and 25% for the three years. No goodwill impairments from this acquisition have occurred. Parent loaned Subsidiary $25,000 for a three-year term on 1/1/Y3
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