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With comprehensive step-by-step. E 10-5 [Preferred stock] Parent owns both common and preferred stock of subsidiary The stockholder's equity of Dhocerneye Corporation on December 31,
With comprehensive step-by-step.
E 10-5 [Preferred stock] Parent owns both common and preferred stock of subsidiary The stockholder's equity of Dhocerneye Corporation on December 31, 2016, was as follows (in thousands): 10% preferred stock. $100 par, cumulative, nonparticipacing, with one year's dividends in arrears Common stock, $10 par Other paid-in capital Retained earnings Total stockholders' equity $1,000 2,000 250 850 $4,100 On January 1, 2017, Roditeli Corporation acquired 60 percent of Dhocerneye's preferred stock for $500,000 and 90 percent of its common stock for $3,000,000. In 2017, Dhocemeye reported net income of $500,000 and paid dividends of $150,000 in 2016. REQUIRED: Calculate the following: 1. The value of preferred stock from Roditeli's investment in Dhocerneye 2. Goodwill from Roditeli's acquisition 3. Roditeli's income from Dhoceryene for 2017, both common and preferred 4. Total noncontrolling interest in Dhoceryene that will appear on Roditeli and Subsidiary's balance sheet at December 31, 2017Step by Step Solution
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