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question is half solved please answer the remaining Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $516,600.
question is half solved please answer the remaining
Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $516,600. At the time of the combination, Station reported common stock outstanding of $129,000 and retained earnings of $385,000, and the fair value of the noncontrolling interest was $57,400. The book value of Station's net assets approximated market value except for patents that had a market value of $60,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Station reported net income of $80,000 and paid dividends of $21,000 during 20X1. 8.33 points Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Answer is complete and correct. Balance in investment account $ 558,900 b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) X Answer is not complete. No Event Accounts Debit Credit A 1 Common stock Retained earnings 129,000 385,000 Mc Graw Hill Education 3 Answer is complete and correct. Balance in investment account $ 558,900 8.33 points b. Prepare the consolidation entry or entries needed to prepare consolidated financial statements at December 31, 20X1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Event Accounts Debit Credit 1 Common stock Retained earnings Income from Station Company NCI in Nl of Station Company 129,000 385,000 72,000 8,000 Dividends declared 21,000 Investment in Station Company NCI in NA of Station Company 403,800 X 8.33 points Consolidation Worksheet Entries eBook nt Record the excess value (differential) reclassification entry. ences Note: Enter debits before credits. Event Accounts Debit Credit 3 Record entry Clear entry view consolidation entriesStep by Step Solution
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