Question

Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2019....

Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2019. During 2019, Harbor had revenues of $2,500,000 and expenses of $2,000,000. The amortization of fair value allocations totaled $60,000 in 2019. Not including its investment in Harbor, Femur Co. had its own revenues of $4,500,000 and expenses of $3,000,000 for the year 2019. A.) What amount of consolidated net income for 2019 should be allocated to Femur’s controlling interest in Harbor? B.) What amount would Femur Co. report as consolidated net income for 2019?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Hi

Let me know in case you face any issue:

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
Renz Co. acquired 80% of the voting common stock of Sogers Corp. on January 1, 2020....
Renz Co. acquired 80% of the voting common stock of Sogers Corp. on January 1, 2020. During 2020, Sogers had revenues of $2,900,000 and expenses of $2,400,000. The amortization of fair value allocations totaled $60,000 in 2020. Not including its investment in Sogers, Renz Co. had its own revenues of $5,800,000 and expenses of $3,200,000 for the year 2020. The noncontrolling interest's share of the earnings of Sogers Corp. for 2020 is calculated to be
1. Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair...
1. Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallace’s net assets was $2,100,000, and the book value was $1,900,000. The noncontrolling interest shares of Wallace Corp. are not actively traded. What is the total amount of goodwill recognized at the date of acquisition? a. $0 b. $300,000 c. $200,000 d. $700,000 e. $100,000 2. When Valley Co. acquired 80% of the common stock of Coleman Corp., Coleman owned land with...
Louise Corp. owned all of the voting common stock of Thelma Co. On January 1, 2017,...
Louise Corp. owned all of the voting common stock of Thelma Co. On January 1, 2017, Thelma sold a parcel of land to Louise. The land had a book value of $32,000 and was sold to Louise for $45,000. What journal entry, if any, should be recorded on the consolidation work sheet for the consolidation the operations of Louise Corp and Thelma Corp as a result of this transaction? SHOW ALL WORK IN SUPPORT OF YOUR ANSWER Chaffee Co. owned...
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...
On January 1, 20x1, Pretty Corporation acquired a controlling interest in the voting common stock of...
On January 1, 20x1, Pretty Corporation acquired a controlling interest in the voting common stock of Friendly Co. At the same time, Pretty Co. purchased 60% of Friendly's outstanding preferred stock. In preparing consolidated financial statements, how should the acquisition of the preferred stock be accounted for?
On January 1, 2021, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong...
On January 1, 2021, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong’s stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired. As of December 31, 2021, before preparing the consolidated worksheet, the financial statements appeared as follows: Pride, Inc. Strong Corp....
On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There...
On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Techron stock. Techron Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The fair value of Techron Co. was appraised at $530,000. The total annual amortization was $11,000 as a result of this transaction. The subsidiary earned $98,000 in 2019 and $126,000 in 2020 with dividend payments of $42,000 each...
On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There...
On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Techron stock. Techron Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The fair value of Techron Co. was appraised at $530,000. The total annual amortization was $11,000 as a result of this transaction. The subsidiary earned $98,000 in 2019 and $126,000 in 2020 with dividend payments of $42,000 each...
On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There...
On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Techron stock. Techron Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The fair value of Techron Co. was appraised at $530,000. The total annual amortization was $11,000 as a result of this transaction. The subsidiary earned $98,000 in 2019 and $126,000 in 2020 with dividend payments of $42,000 each...
1)On January 1, 2017, Padme Corp. acquired 80% of the voting common stock of Stormtrooper Inc....
1)On January 1, 2017, Padme Corp. acquired 80% of the voting common stock of Stormtrooper Inc. During the year, Padme sold to Stormtrooper for $450,000 goods which cost $330,000. Stormtrooper still owned 15% of the goods at year-end. Stormtrooper's reported net income was $204,000, and Padme's net income was $806,000. Padme decided to use the equity method to account for this investment. What was the noncontrolling interest's share of consolidated net income? A. $3,600. B. $22,800. C. $30,900. D. $32,900....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT