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please show the work I will give you a thumb up:) Company purchased 75% of Prairie Co for $696,000 cash on 1/1/2019. Balance sheet for
please show the work I will give you a thumb up:)
Company purchased 75% of Prairie Co for $696,000 cash on 1/1/2019. Balance sheet for P Company and S Company immediately prior to the combination were as follows: FV Current Assets except Inventory Inventory Land Building and Equipment (net) ** Total P Co BV $1,114,000 200,000 540,000 1,185,000 3,039,000 S Co BV $162,000 $162,000 40,000 25,000 298,000 198,000 100,000 200,000 600,000 585,000 Liabilities $900,000 $150,000 150,000 Common Stock, S20 par value 1,650,000 240,000 Other Contributed Capital 218,000 60,000 Retained Earnings 271,000 150,000 Total $3,039,000 600,000 *P company uses FIFO. ** P company depreciate the Sco's building and equipment using 20 years useful life and zero salvage value. YEAR Net income (Sco) Dividend (Sco) 2020 $30,000 $12,000 2021 S40,000 $5,000 2022 $40,000 $18,000 YEAR Goodwill 2020 $375,000 2021 $400,000 2022 $410,000 YEAR Net income Dividend Pco (on P's book) 2020 2021 $300,000 $400,000 $100,000 $12,000 2022 $450,000 $15,000 a. Assuming P co uses partial equity method, determine consolidated net income for 2020, 2021 and 2022. b. Assuming P co uses partial equity method, determine income available to NCI for 2020, 2021 and 2022 c. Assuming P co uses complete equity method, determine consolidated net income for 2021. d. Assuming P co uses complete equity method, determine income available to NCI for 2021Step by Step Solution
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