Question

On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,...

On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $498,000 cash. The acquisition-date fair value of the noncontrolling interest was $55,300. At January 1, 2016, Star’s net assets had a total carrying amount of $387,100. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $56,000. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on its books. Star recorded net income of $49,000 in 2016 and $56,000 in 2017. Each year since the acquisition, Star has declared a $14,000 dividend. At January 1, 2018, Pride’s retained earnings show a $175,000 balance. Selected account balances for the two companies from their separate operations were as follows: Pride Star 2018 Revenues $ 348,700 $ 199,600 2018 Expenses 245,200 136,600 Problem 4-7 (LO 4-4) What is consolidated net income for 2018?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,...
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $456,000 cash. The acquisition-date fair value of the noncontrolling interest was $50,600. At January 1, 2016, Star’s net assets had a total carrying amount of $354,200. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $51,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on...
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,...
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $547,000 cash. The acquisition-date fair value of the noncontrolling interest was $60,800. At January 1, 2016, Star’s net assets had a total carrying amount of $425,600. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $61,600. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on...
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,...
On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $456,000 cash. The acquisition-date fair value of the noncontrolling interest was $50,600. At January 1, 2016, Star’s net assets had a total carrying amount of $354,200. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $51,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on...
On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,...
On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for $612,000 cash. The acquisition-date fair value of the noncontrolling interest was $68,000. At January 1, 2019, Star’s net assets had a total carrying amount of $476,000. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $71,200. Any remaining excess fair value over book value was attributed to a customer list developed by Star (four-year remaining life), but not recorded on...
Use the following information to answer questions 7 and 8 On January 1, 2016, Pride Corporation...
Use the following information to answer questions 7 and 8 On January 1, 2016, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc. for $481,000 cash. The acquisition-date fair value of the noncontrolling interest was $53,500. At January 1, 2016, Star’s net assets had a total carrying amount of $374,500. Equipment (eight-year remaining life) was undervalued on Star’s financial records by $72,000. Any remaining excess fair value over book value was attributed to a customer list...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $972,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,020,000 and Retained Earnings of $51,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $108,000. QuickPort attributed the $9,000 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,089,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,140,000 and Retained Earnings of $57,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $121,000. QuickPort attributed the $13,000 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,089,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,140,000 and Retained Earnings of $57,000. The acquisition-date fair value of the 10 percent noncontrolling interest was $121,000. QuickPort attributed the $13,000 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
On January 1, 2013, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona...
On January 1, 2013, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $774,000 cash. At January 1, 2013, Sedona’s net assets had a total carrying amount of $510,000. Equipment (eight-year remaining life) was undervalued on Sedona’s financial records by $142,400. Any remaining excess fair over book value was attributed to a customer list developed by Sedona (four-year remaining life), but not recorded on its books. Phoenix applies the equity method to account for its...
B. On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of...
B. On January 1, 2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $626,000 cash. At January 1, 2019, Sedona’s net assets had a total carrying amount of $438,200. Equipment (eight-year remaining life) was undervalued on Sedona’s financial records by $86,000. Any remaining excess fair over book value was attributed to a customer list developed by Sedona (four-year remaining life), but not recorded on its books. Phoenix applies the equity method to account for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT