Question
Purple Corporation acquired 75 percent of Socks Corporations common stock on January 1, 20X8, for $435,000. At that date, Socks reported common stock outstanding of
Purple Corporation acquired 75 percent of Socks Corporations common stock on January 1, 20X8, for $435,000. At that date, Socks reported common stock outstanding of $300,000 and retained earnings of $200,000, and the fair value of the noncontrolling interest was $145,000. The book values and fair values of Socks's assets and liabilities were equal, except for other intangible assets, which had a fair value $80,000 more than book value and a 10-year remaining life. Purple and Socks reported the following data for 20X8 and 20X9:
Socks Corporation | Purple Corporation | ||||
Year | Net Income | Comprehensive Income | Dividends Paid | Operating Income | Dividends Paid |
2018 | $ 40,000 | $ 50,000 | $ 15,000 | $ 120,000 | $ 70,000 |
2019 | $ 60,000 | $ 65,000 | $ 30,000 | $ 140,000 | $ 70,000 |
Assuming that Purple reported capital stock outstanding of $320,000 and retained earnings of $430,000 at January 1, 20X8, prepare the stockholders equity section of the consolidated balance sheet at December 31, 20X8 and 20X9.
2018 | 2019 | |
Controlling Interest | ||
Add: Common Stock | 320000 | 320000 |
Retained Earnings | ||
Accumulated OCI | ||
Total Controlling Interest | ||
Add: NCI | ||
Total Stockholders' Equity |
I need help calculating Retained Earnings, Accumulated Other Comprehensive Income and Noncontrolling interest.
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