Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $13,000 per year. For 2021, each of the three companies reported the following Information accumulated by its separate accounting system. Separate operating Income figures do not include any Investment or dividend Income. Boulder Rock Stone Separate Operating Income $397,500 137,500 200,000 Dividends Declared $123,000 27,000 47,000 Required: a. What is consolidated net Income for 2021? b. How is 2021 consolidated net Income distributed to the controlling and noncontrolling interests?

Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $26,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $13,000 per year. For 2021, each of the three companies reported the following Information accumulated by its separate accounting system. Separate operating Income figures do not include any Investment or dividend Income. Boulder Rock Stone Separate Operating Income $397,500 137,500 200,000 Dividends Declared $123,000 27,000 47,000 Required: a. What is consolidated net Income for 2021? b. How is 2021 consolidated net Income distributed to the controlling and noncontrolling interests?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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Boulder, Inc., obtained 90 percent of Rock Corporation on January 1, 2019. Annual amortization of $24,000 is applicable on the allocations of Rock's acquisition-date business fair value. On January 1, 2020, Rock acquired 75 percent of Stone Company's voting stock. Excess business fair-value amortization on this second acquisition amounted to $10,600 per year. For 2021, each of the three companies reported the following information accumulated by its separate accounting system. Separate operating income figures do not include any investment or dividend income. Separate Operating Income $324,300 Dividends Declared Boulder $116,000 23,000 Rock 112,300 176,000 Stone 41,000 Required: a. What is consolidated net income for 2021? b. How is 2021 consolidated net income distributed to the controlling and noncontrolling interests? Amount a. Consolidated net income for 2021 b. Controlling interest in consolidated net income Noncontrolling interest in consolidated net income
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