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please show work On January 1, 2019, Patterson Inc. acquired 80% of Sunn Co. by paying $560,000 cash. There is no active trading market for
please show work
On January 1, 2019, Patterson Inc. acquired 80% of Sunn Co. by paying $560,000 cash. There is no active trading market for Sunn stock. Sunn Co. reported a Common Stock account balance of $160,000 and Retained Earnings of $320,000 at that date. Patterson attributed the excess of fair value over Sunn's book value to an equipment with 20 years' remaining life. The subsidiary earned $110,000 in 2019 and $135,000 in 2020 with dividend payments of $54,000 each year. Without regard for this investment, Patterson had income of $356,000 in 2019 and $421,000 in 2020. Requirements: a. What is the fair value of noncontrolling interest on January 1, 2019? (2 points) b. What is the book value of Sunn at acquisition on January 1, 2019? (2 points) c. What is the goodwill from the acquisition on January 1, 2019? (2 points) d. What is the amount of annual amortization from the acquisition? (2 points) e. What is consolidated net income for 2019? (2 points) f. What is the consolidated net income for 2019 attributable to Patterson's controlling interest? (2 points) g. What is the noncontrolling interest's share of the subsidiary's income for the year ended December 31, 2019? (2 points) h. What is the ending balance of noncontrolling interest in the subsidiary at December 31, 2019? (3 points) i. What is the ending balance of noncontrolling interest in the subsidiary at December 31, 2020? (3 points) Step by Step Solution
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