Point Company acquired 80 percent of the stock of Slash Corp. on January 1, 2020.

The stockholder's equity section at that date is as follows:

Stockholders Equity Section

Point

Slash

Common Stock

600,000

$200,000

Additional Paid in Capital

1,000,000

400,000

Retained Earnings

800,000

600,000

Accumulated Other comprehensive Income

100,000

50,000

Total Stockholders Equity

$2,500,000

$1,250,000

Point financed the acquisition by using $1,000,000 cash and giving a note payable for $125,000. Book value approximated fair value for all of Slash's assets and liabilities except for:

Buildings which had a fair value of $50,000 more than its book value and a remaining useful life of 10 years.

Land which had a fair value of $40,000 more than its book value.

Merchandise Inventory which had a fair value of 20,000 more than its book value, and was sold during 2020.

Internally created patent with a fair value of 30,000 and a useful life of 5 years.

Any remaining differential was related to goodwill. Goodwill is deemed to be impaired and worth only $12,000.

Slash has accounts payable to Point in the amount of $25,000.

During 2020, Point & Slash had the following:

Point

Slash

1. Declared cash dividends

$120,000

$ 60,000

2. Earned net income

200,000

100,000

3. Earned other comprehensive income from available-for-sale securities

40,000

20,000

Use this information to calculate the followings:

Question 18

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The amount of total differential is

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Question 19

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The balance of Income from Slash account on December 31, 2020 is

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The balance of Investment in Slash account on December 31, 2020 is

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Consolidated net income on December 31, 2020 is

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Consolidated net income attributable to controlling interest on December 31, 2020 is

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Consolidated retained earnings on December 31, 2020 is

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Consolidated comprehensive income on December 31, 2020 is

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Question 25

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Consolidated comprehensive income attributable to controlling interest on December 31, 2020 is

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