The stockholder's equity of Son Corporation at December 31, 2015, 2016, and 2017, is as follows (in

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The stockholder's equity of Son Corporation at December 31, 2015, 2016, and 2017, is as follows (in thousands):
The stockholder's equity of Son Corporation at December 31, 2015,

Son reported income of $80,000 in 2016 and paid no dividends. In 2017, Son reported net income of $80,000 and declared and paid dividends of $10,000 on May 1 and $10,000 on November 1. Income was earned evenly in both years.
Pop Corporation acquired 4,000 shares of Son common stock on April 1, 2016, for $64,000 cash and another 8,000 shares on July 1, 2017, for $164,000. Any fair value/book value differential is goodwill.
REQUIRED:
Determine the following:
1. Pop's income from Son for 2016 and 2017
2. Noncontrolling interest at December 31, 2017
3. Preacquisition income in 2017
4. Balance of the Investment in Son account at December 31, 2017

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...
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...
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Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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