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Problem 2 ( 8 Points ) . Luball Corporation acquired an 8 0 percent interest in Tocurt Corporation on January 2 , 2 0 X
Problem Points
Luball Corporation acquired an percent interest in Tocurt Corporation on January X for $ On this date the capital stock and retained earnings of the two companies were as follows:
Luball Tocurt
Capital stock $ $
Retained earnings
The assets and liabilities of Tocurt were stated at their fair values when Luball acquired its percent interest. Luball uses the equity method to account for its investment in Tocurt.
Net income and dividends for X for the affiliated companies were:
Luball Tocurt
Net income $ $
Dividends declared
Dividends payable Dec. X
Required:
Calculate the amounts at which the following items should appear in the consolidated Financial statement on December X:
Capital stock
Goodwill
Consolidated retained earnings
Minority interest
Dividends payable
Investment income
Consolidated controlling group Net Income
Minority noncontrolling income.
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