Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 Greesey Company acquired 70 percent of Wrucht Corporation's common stock for 5M1,000 in cash. At the acquisition date, the book values and fair

image text in transcribed
image text in transcribed
QUESTION 1 Greesey Company acquired 70 percent of Wrucht Corporation's common stock for 5M1,000 in cash. At the acquisition date, the book values and fair values of Wright's assets and liabilities were equal and the fair value of the noncontrolling interest was equal to 30 percent of the total book value of Wight The stockholders' equity accounts of the two companies at the acquisition date are GREESEY Wright Common Stock ($5 par value) $1,000,000 $400,000 Additional Paid-in Capital 640,000 200,000 Retained Earnings 800.000 30x7.000 Total Stockholders' Equity $2,440.0O $900.000 NCH in Income of Wright of $27,000 was on Greesey's consolidated income statement for 2020 wright declared $36,000 in cash dividends Greesey reported Income (excluding income from the Wright westment) equal to $450,000, and declared $95,000 in dividends. Input Requirement: 1. No s's in the general journals. Otherwise, include a Son all monetary amounts. 2. Be sure to include the 1,000 separator (4,500 NOT 4500) 3. Where needed, round answers to the nearest $1 REQUIRED: 1. What amount will be assigned to the Noncontrolling interest (NCI IN NA of Wright) on the January 3, 2020 consolidated balance sheet. 2. What is the total stockholders' equity reported on the January 3, 2020 consolidated balance sheet? * Save and Submit to save and submit. Click Save All Answers to save all answers, 1. What amount will be assigned to the Noncontrolling interest (NCI IN NA of Wright) on the lanuwy 3, 2020 consolidated balance sheet 2. What is the total stockholders' equity reported on the January 3, 2020 comolidated balance sheet? 3. What is the amount of Income from Wright that Greesey (Controlling Interest) will report on the consolidated income statement on December 2020? Round your answer to the nearest $1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Artificial Intelligence In Accounting Organisational And Ethical Implications

Authors: Othmar M. Lehner, Carina Knoll

1st Edition

1032055626, 9781032055626

More Books

Students also viewed these Accounting questions

Question

Why do you think most employers opt for the home-based salary plan?

Answered: 1 week ago