Problem 08 13 (LO5) A Company owns 75 of B Company and 40 of C Company B Company owns 40 of C Company The following information was assembled at December 31, Year 7 A Company B Company C Company Cash$119,400$50,900$21,600Accounts receivable232,000132,00060,000Inventory309,000238,00074,000Investment in C75,240110,240Investment in B1,310,730Property,plant, and equipment3,300,0002,600,000270,000Accumulated depreciation(960,000)(577,000)(104,000)$4,386,370$2,554,140$321,600Accounts payable$123,000$104,000$10,000Bonds payable400,000700,000Preferred shares 50,000Common shares1,200,000400,000200,000Retained earnings, January 12,582,5701,229,14075,600Net income134,80071,00036,000Dividends(54,000)$4,386,370$2,554,140$321,600 Additional Information A Company purchased its 40 interest in C Company on January 1, Year 4 On that date, the negative acquisition differential of $50,000 on the 40 investment was allocated to equipment with an estimated useful life of 10 years A Company purchased its 75 of B Company's common shares on January 1, Year 6 On that date, the 100 implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $92,000 to patents to be amortized over eight years The preferred shares of B Company are non cumulative On January 1, Year 6, B Company's accumulated depreciation was $450,000 On January 1, Year 7, B Company purchased its 40 interest in C Company for $110,240 The carrying amount of C Company's identifiable net assets approximated fair value on this date and C Company's accumulated depreciation was $28,400 The inventory of B Company contains a profit of $8,800 on merchandise purchased from A Company The inventory of A Company contains a profit of $7,800 on merchandise purchased from C Company On December 31, Year 7, A Company owes $36,000 to C Company and B Company owes $4,500 to A Company Both A Company and B Company use the equity method to account for their investments but have made no equity method adjustments in Year 7 An income tax rate of 40 is used for consolidation purposes Required (a) Calculate non controlling interest's share of consolidated net income for Year 7 (Round your intermediate computations to nearest whole dollar value Omit $ sign in your response ) Non controlling interest's share of consolidated net income$ (b) consolidated statement of retained earnings for Year 7 (Round your intermediate computations to nearest whole dollar value Input all values as positive numbers Omit $ sign in your response ) A CompanyConsolidated Retained Earnings StatementFor the Year Ended December 31, Year 7 Balance Jan 1$Net incomeLess DividendsBalance Dec 31$ (c) consolidated balance sheet as at December 31, Year 7 (Amounts to be deducted should be indicated by a minus sign Round your intermediate computations to nearest whole dollar value

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Problem 08-13 (LO5) A Company owns 75% of B Company and 40% of C Company. B Company owns 40% of C Company. The following information

Problem 08-13 (LO5)

A Company owns 75% of B Company and 40% of C Company. B Company owns 40% of C Company. The following information was assembled at December 31, Year 7.

A CompanyB CompanyC CompanyCash$119,400$50,900$21,600Accounts receivable232,000132,00060,000Inventory309,000238,00074,000Investment in C75,240110,240Investment in B1,310,730Property,plant, and equipment3,300,0002,600,000270,000Accumulated depreciation(960,000)(577,000)(104,000)$4,386,370$2,554,140$321,600Accounts payable$123,000$104,000$10,000Bonds payable400,000700,000Preferred shares-50,000Common shares1,200,000400,000200,000Retained earnings, January 12,582,5701,229,14075,600Net income134,80071,00036,000Dividends(54,000)$4,386,370$2,554,140$321,600

Additional Information

A Company purchased its 40% interest in C Company on January 1, Year 4. On that date, the negative acquisition differential of $50,000 on the 40% investment was allocated to equipment with an estimated useful life of 10 years.
A Company purchased its 75% of B Company's common shares on January 1, Year 6. On that date, the 100% implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $92,000 to patents to be amortized over eight years. The preferred shares of B Company are non-cumulative.
On January 1, Year 6, B Company's accumulated depreciation was $450,000.
On January 1, Year 7, B Company purchased its 40% interest in C Company for $110,240. The carrying amount of C Company's identifiable net assets approximated fair value on this date and C Company's accumulated depreciation was $28,400.
The inventory of B Company contains a profit of $8,800 on merchandise purchased from A Company. The inventory of A Company contains a profit of $7,800 on merchandise purchased from C Company.
On December 31, Year 7, A Company owes $36,000 to C Company and B Company owes $4,500 to A Company.
Both A Company and B Company use the equity method to account for their investments but have made no equity method adjustments in Year 7.
An income tax rate of 40% is used for consolidation purposes.

Required:

(a)Calculate non-controlling interest's share of consolidated net income for Year 7.(Round your intermediate computations to nearest whole dollar value.Omit $ sign in your response.)

Non-controlling interest's share of consolidated net income$

(b)consolidated statement of retained earnings for Year 7.(Round your intermediate computations to nearest whole dollar value. Input all values as positive numbers.Omit $ sign in your response.)

A CompanyConsolidated Retained Earnings StatementFor the Year Ended December 31, Year 7Balance Jan. 1$Net incomeLess: DividendsBalance Dec. 31$

(c)consolidated balance sheet as at December 31, Year 7.(Amounts to be deducted should be indicated by a minus sign. Round your intermediate computations to nearest whole dollar value.