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DI January 1, 2010, 1. Justin acquires 90% of the voting common shares of Stevens on January 1 In 2010, Justin pays dividends of $350,000 and Stevens pays dividends of $25,000. a. How much is the noncontrolling interest in subsidary dividends. b. How much is consolidated dividends C. Prepare worksheet entry D for this situation. 2. Roland acquires 70% of Felix on January 1, 2011. The terms of purchase is the Roland pays to Felix shareholders 70,000 shares of Roland common stock with market value of $20 per share. The remaining 30,000 shares of Felix were tri at $15 both just before the acquisition date and right after the acquisition date a. How much is the control premium per share b. How much is the total control premium paid by Roland c. Calculate business fair value d. Assume that 100% of the fair value of net assets acquired was $1,200,000. How much is goodwill e. How much goodwill is allocated to the controlling interest f. How much goodwill is allocated to the noncontrolling interest 3. Tall acquires 80% of Short on May 1, 2010. For the first 4 months of 2010, Short has total revenues of $1,000,000 and total expenses of $600,000. For the last 8 months of the year Short has total revenues of $1,800,000 and total expenses of $800.000 a. How much is the noncontrolling interest in Short net income in 2010 b. How much subsidiary net income is allocated to the controlling interest 4. a. Thompson owns 100% of Rollins and at December 31, 2012, its Investment in Rollins account stands at $10,000,000. On that date Thompson sells 20% of its ownership for $2,500,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. b. Same facts as above, except the sales price is $1,000,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. 5. a. Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at $6,000,000. On that date Big sells half its ownership for $4,000,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012. C. Same facts as above, except the sales price is $2,500,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012. 5. Wang owns 30% of Chen and at December 31, 2015 the balance in Wang's investment account equals $400,000. On January 1, 2016 Wang purchases an additional 40% ownership in Chen for $600,000, bringing Wang's ownership up to 70%. Wang will Dr. Investment in Chen for $600,000 and credit cash for $600,000. What additional entry will Wang be required to make to reflect the increase in ownership. 6. Roberts owns 90% of Smith at has a balance in the investment account of $200,000 at December 31, 2015. On January 1, 2016 Roberts purchases an additional 10% ownership in Smith for $70,000. Roberts will Dr. Investment in Smith for $70,000 and credit Cash for $70,000. What additional entry will Roberts be required to make to reflect the increase in ownership. DI January 1, 2010, 1. Justin acquires 90% of the voting common shares of Stevens on January 1 In 2010, Justin pays dividends of $350,000 and Stevens pays dividends of $25,000. a. How much is the noncontrolling interest in subsidary dividends. b. How much is consolidated dividends C. Prepare worksheet entry D for this situation. 2. Roland acquires 70% of Felix on January 1, 2011. The terms of purchase is the Roland pays to Felix shareholders 70,000 shares of Roland common stock with market value of $20 per share. The remaining 30,000 shares of Felix were tri at $15 both just before the acquisition date and right after the acquisition date a. How much is the control premium per share b. How much is the total control premium paid by Roland c. Calculate business fair value d. Assume that 100% of the fair value of net assets acquired was $1,200,000. How much is goodwill e. How much goodwill is allocated to the controlling interest f. How much goodwill is allocated to the noncontrolling interest 3. Tall acquires 80% of Short on May 1, 2010. For the first 4 months of 2010, Short has total revenues of $1,000,000 and total expenses of $600,000. For the last 8 months of the year Short has total revenues of $1,800,000 and total expenses of $800.000 a. How much is the noncontrolling interest in Short net income in 2010 b. How much subsidiary net income is allocated to the controlling interest 4. a. Thompson owns 100% of Rollins and at December 31, 2012, its Investment in Rollins account stands at $10,000,000. On that date Thompson sells 20% of its ownership for $2,500,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. b. Same facts as above, except the sales price is $1,000,000 cash. Prepare the journal entry to be recorded by Thompson on December 31, 2012. 5. a. Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at $6,000,000. On that date Big sells half its ownership for $4,000,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012. C. Same facts as above, except the sales price is $2,500,000 cash. Prepare the journal entry to be recorded by Big on December 31, 2012. 5. Wang owns 30% of Chen and at December 31, 2015 the balance in Wang's investment account equals $400,000. On January 1, 2016 Wang purchases an additional 40% ownership in Chen for $600,000, bringing Wang's ownership up to 70%. Wang will Dr. Investment in Chen for $600,000 and credit cash for $600,000. What additional entry will Wang be required to make to reflect the increase in ownership. 6. Roberts owns 90% of Smith at has a balance in the investment account of $200,000 at December 31, 2015. On January 1, 2016 Roberts purchases an additional 10% ownership in Smith for $70,000. Roberts will Dr. Investment in Smith for $70,000 and credit Cash for $70,000. What additional entry will Roberts be required to make to reflect the increase in ownership