Question
Subsidiary Company reported the following net income and dividends for the years indicated: Year Net Income Dividends 20X6 35,000 12,000 20X7 45,000 20,000 20X8 30,000
- Subsidiary Company reported the following net income and dividends for the years indicated:
| Year | Net Income | Dividends |
| 20X6 | 35,000 | 12,000 |
| 20X7 | 45,000 | 20,000 |
| 20X8 | 30,000 | 14,000 |
Parent acquired 75% of Subsidiarys common stock on January 1, 20X6. On that date, the fair value of Subs net assets was equal to the book value. Parent uses the equity method in accounting for its ownership in Sub and reported a balance of $259,800 in its investment account on December 31, 20X8.
- What amount did Parent pay to acquire Subsidiarys shares?
- What was the fair value of Subs net assets on January 1, 20X6?
- What amount will be assigned to the NCI shareholders in the consolidated balance sheet prepared at December 31, 20X8?
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Financial Audit American Battle Monuments Commissions Financial Statements For Fiscal Years 2011 And 2010
Authors: Government Accountability Office
1st Edition
1492310883, 978-1492310884
