Tall Corporation acquired 75 percent of Light Corporation's voting common stock on January 1, 20X2, at underlying

Question:

Tall acquired 75 percent of Light Corporation's voting on January 1, 20X2, at underlying book value. At the acquisition date, the book values and fair values of Light's assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 25 percent of the total book value of Light. Noncontrolling interest was assigned income of $8,000 in Tall's for 20X2 and a balance of $65,500 in Tall's consolidated at December 31, 20X2. Light reported retained earnings of $70,000 and additional paid-in capital of $40,000 on January 1, 20X2. Light did not pay dividends or issue stock in 20X2.

Required
a. Compute the amount of net income reported by Light for 20X2.
b. Prepare the stockholders' equity section of Light's at December 31, 20X2.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...