Compute for the non-controlling interest in Net Income.
Q: Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following…
A: The profit generated by a corporation after subtracting all costs connected with generating and…
Q: Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at…
A: Holding company which has significant influence and control in any other company should prepare…
Q: Baba Plc has owned 100% of the issued share capital of Onua Plc for many years. Baba Plc sells goods…
A: The cost of goods sold represents the cost incurred in selling the goods and services to the…
Q: Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The…
A: Basic earnings per share Branch Manufacturing income from operations 125000 Short Retail…
Q: Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at…
A: Answer: Option b.
Q: 4. Pate Corp. owns 80% of Strange Inc.’s common stock. During 20X1, Pate sold inventory to Strange…
A: Cost of sales refers to the amount paid for the purchase of inventory of goods that should be sold…
Q: Jefferson Enterprises acquired assets and liabilities of Alaska Company for P600,000. At that date,…
A: As per IFRS 3 In business combination acquired assets and liabilities shall be valued at fair market…
Q: Scroll Inc., a wholly owned subsidiary of Pirn, Inc. began operations on January 1, 20x2. The…
A: Under the merger and acquisition when a company acquired other company, the acquiring company is…
Q: 17.At the beginning of the year, Tote, Inc., had $75,000 in its AAA and $90,000 of earnings and…
A: S-corp is an entity which has a pass-through status ie All the income and losses would go to the…
Q: each of the following independent situations, determine the dividends received deduction for the…
A: There are different limits for Dividend deductions for corporate Limits are if below 20% can deduct…
Q: King's Road recently acquired all of Oxford Corporation's stock and is now consolidating the…
A: As per international Financial reporting standards if fair value of assets greater than tax basis…
Q: Marital Aid Inc, owned by four individual shareholders, shows the following result for the year just…
A: In this question, we calculate the Personal Holding Company Income for Marital.
Q: Pi Company owns 85% interest in So Company. During the year, Pi Company reported net income of…
A: Working note: Computation of unrealized profit on stock available with Pi Company: Unrealized…
Q: ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. DEF Co. Sales…
A: SOLUTION- THE NET INCOME OF SUBSIDIARY ON MULTIPLY WITH THE PERCENTAGE OF NON CONTROLLING INTEREST…
Q: B Corporation has a stake in C and D Corporations. They had the following sales in the past 12-month…
A: Vatable sales are those sales amounts on which vat rate is charged. When-so-ever a company holds…
Q: ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. 2,700,000…
A: Non-controlling interest is the interest in the subsidiary company of a company other than the…
Q: The profit and loss statement of Treadwell Ltd., an S corporation, shows $265,000 book income.…
A: Section 1231 gain: Gain from the sale of a real or depreciable property used in a trade or business…
Q: The profit and loss statement of Kitsch Ltd., an S corporation, shows $115,000 book income. Kitsch…
A: Types of Income under S Corp Ordinary Business Income: Business Net receipts- Deductions Separately…
Q: Oriole Company owns 40% interest in the stock of Sandhill Corporation. During the year, Sandhill…
A: Consolidated net income: Net income calculated at the end of a particular period by the parent…
Q: Swallow Corporation owns 12% of Brown Corporation's stock. How much is Swallow's taxable income or…
A: Step 1 Although dividend is taxable as other income
Q: Palm Company owns 100% of Soso Company. During year X1, Soso sold merchandise costing $50,000 to…
A: Soso sold merchandise cost =$ 50000 profit realised on it =$ 30000 But, 40% stock…
Q: The following items are from Asad Corporation on December 31, 1997. Assume a flat 40% corporate tax…
A: The single step income statement is a basic income statement model adopted by businesses. This…
Q: Cole Company owns 40% of Barnwell Inc. During the current year, Barnwell reported net income of…
A: When a company have the investment in another company, share in net income earned is added to the…
Q: Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary,…
A: Consolidated cost of sales is computed as follows
Q: The Dawg corporation owns 16% of Company A and 25% of Company B. Dividends received from Company A…
A: The Dividends Received Deduction, or DRD, is a tax deduction that C corporations receive on the…
Q: Punch Manufacturing Corporation owns 80 percent of the common shares of Short Retail Stores. The…
A: Earning per share shows the net income earned on the basis of number of shares outstanding.
Q: Santos Corporation is considering investing in Fenco Corporation, but is unsure about what level of…
A: Step 1: Compute the dividend income for Santos Corporation: Dividend income=Dividend payment×Santos…
Q: The following data were taken from the records of Vony Company and Francis Company (in thousands)…
A: Hi studentSince there are multiple subparts, we will answer only first three subparts. If you want…
Q: Tech Co. and Robotics Co. are joint venturers of Mecha Co., a producer of high tech machinery. Tech…
A: Joint venture is a form of agreement or arrangement between two or more than two persons, in which…
Q: company owns 40% of S Corporation and During the year S had net income of 200000 and paid dividends…
A: % owned by company P = 40% Net income of S = 200,000 Dividends paid by S = 50,000
Q: A Company own 90% of the outstanding shares of B Company and 80% of the outstanding shares of C…
A: A Company's Owns outstanding shares of B company = 90% Owns outstanding shares of C company = 80% In…
Q: rittney owns 30% of Orange Company, a C-Corporation. Orange Company has $600,000 in operating income…
A: Gross income refers to the total sum of money earned or gained by an individual or an entity in the…
Q: During the current year, Elements Corporation has the following transactions: Income from…
A: Taxable Income: Before determining tax liability, we find out the income on which tax is levied.…
Q: ayser SE owns 25% of Plano Company. For the current year, Plano reports net income of $190,000 and…
A: Solution: Record of entries in…
Q: House Plc owns 80% of the issued share capital of Window Plc and 25% of the issued share capital of…
A: Revenues are as follows: House Plc = GH¢1,500,000Window Plc = GH¢1,000,000Door Plc = GH¢160,000
Q: 1.) Abracada owns 90% interest of Deli Co. The following information are provided below: Abracada…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary,…
A: Consolidated Cost of Sales:- It is calculated by adding both costs of sales of a parent as well as a…
Q: Martin Company provided the following data for the current year: -On March 1, Martin received…
A: Dividend income refers to the amount which a shareholder receives on his investment. When a…
Q: X Corp has $200,000 of gross receipts from sales, $300,000 of operating expenses, and $150,000 of…
A: Dividend received from less than 20% owned domestic corporations per TCJA is 50% DRD. Exception…
Q: ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. 2,700,000…
A: Calculation of non controlling interest :
Q: Marital Aid Inc, owned by four individual shareholders, shows the following result for the year just…
A: In this question, we will find out the Personal Holding Company Income for Marital. There are…
Q: Acker Company bought 100% of Howell Company on 1/1/X1 for $1,440,000 and began applying the equity…
A: Expansion and growth are motives of business. Purchasing or acquiring other firms is one of the ways…
Q: The profit and loss statement of Kitsch Ltd., an S corporation, shows $100,000 book income. Kitsch…
A: A. PARTICULARS AMOUNT ($) BOOK INCOME $100,000 ADD : LONG TERM CAPITAL LOSS $6,000…
Q: On June 15, The business sold 1.700 shares of ABC Holding at a price of 2,75 TL each (unit purchase…
A: If the stock is sold at a price more than the purchase price, the capital gain is to be recorded in…
Q: ABC owns 90% interest of DEF Co. The following information are provided: АВС Со. DEF Co. Sales…
A: Consolidated financial statements are the financial statements of a group consisting of multiple…
Q: Income statement information for the year 2020 for Perena Corporation and its 60% owned subsidiary,…
A: Consolidated Cost of Sales:- It is calculated by adding both costs of sales of a parent as well as a…
1.) Abracada owns 90% interest of Deli Co. The following information are provided below:
| Deli Co | Abracada Co | |
| Sales | 2,000,000 | 5,400,000 |
| Cost of goods sold | (800,000) | (2,700,000) |
| Gross profit | 1,200,000 | 2,700,000 |
| Operating expenses | (800,000) | (500,000) |
| Dividend Income | 20,000 | |
| Net Income | 400,000 | 2,240,000 |
Abracada Co. sold goods to Deli Co. for 60,000, 20% of these goods were sold for the year. Abracada also sold goods to Abracada Co. for 100,000, 20% of these goods were unsold at the end of the year. The ending inventory for Abracada Co is 240,000 and 100,000 for Deli Co. Compute for the non-controlling interest in Net Income.
Step by step
Solved in 2 steps
- On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…On Jan 1, 20X8, Banawe Company purchased 80% of the outstanding shares of Malate Company at a cost of P4,000,000. On that date, Malate had P2,500,000 of capital stock and P3,500,000 of retained earnings. For 20X8, Banawe had income of P1,400,000 form its separate operations and paid dividends of P750,000. Malate on the other hand reported income of P325,000 and paid dividends of P150,000 on December 1, 20X8. All the assets and liabilities of Malate have book values equal to their fair market values. Assume all income was earned evenly throughout the year except for an intercompany transaction on October 1, 20X8 when Banawe purchased a machinery from Malate for P500,000. The book value of the machinery on that date amounted to P600,000 and accumulated depreciation of P400,000 and is already reflected in the income of Malate indicated above. The machinery is expected to have a remaining useful life of 5 years from the date of sale. In the December 31, 20X8 consolidated financial…
- A Corporation purchased a 70% interest in B Company on January 1, 2013 for P140,000, when B’s stockholders’ equity consisted of P30,000 common stock, P100,000 additional paid-in-capital, and P200,000 retained earnings. Income and dividends data for B are as follows: Net income (or loss) P50,000 Dividends 5,000 NCI is measured at fair value If A reported separate income from own operations of P120,000 for 2013, what is the consolidated total comprehensive income for 2013?During 20X1, Blue Corporation sold products for $2,500,000 (gross amount) with the sales returns and allowances of $50,000. The company incurred selling expenses for $120,000 and administrative expenses for $330,000. During the year, the company purchased 23,000 common shares of Francis Corporation at $8 per share and recorded the FV-NI investments, and purchased 18,000 shares of Davis Corporation at $12 per share and recorded the FV-OCI investments. On December 31, 20X1, the share prices of Francis Corporation and Davis Corporation were $11 per share and $10 per share, respectively. The company recognized interest expense for $62,000. The beginning-of-year balance of inventory was $640,000 and the end-of-year balance of inventory was $590,000. During the year, the company purchased inventory for $1,600,000. On September 1, 20X1, the company discontinued operation of a division that had a loss of $150,000 for its operation in 20X1. The discontinued division had the carrying value…On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the carries the investment using the cost model. On December 31, 20x1, Simon Corp. declared and paid dividends amounting to P500,000 and the net income was P2,000,000. On January 10, 20x2, Paul Corp. acquired another 50% ownership interest in Simon Corp for P3,000,000. At that date, Simon Corp. has identifiable assets with book value of P6,000,000 and fair value of P7,200,000 and it has liabilities with book and fair value of P1,500,000. Assuming Paul Corp. measures the NCI at fair value amounting to P2,250,000, what is the amount of goodwill?
- During 20X1, Blue Corporation sold products for $3,000,000 with the sales returns and allowances of $80,000. The company incurred selling expenses for $150,000 and administrative expenses for $400,000. During the year, the company purchased 20,000 common shares of Francis Corporation at $11 per share and recorded the FV-NI investments, and purchased 15,000 shares of Davis Corporation at $10 per share and recorded the FV-OCI investments. On December 31, 20X1, the share prices of Francis Corporation and Davis Corporation were $7 per share and $12 per share, respectively. The company recognized interest income for $78,000. The beginning-of-year balance of inventory was $760,000 and the end-of-year balance of inventory was $890,000. During the year, the company purchased inventory for $2,000,000. On September 1, 20X1, the company discontinued operation of a division that had an income of $200,000 for its operation in 20X1. The discontinued division had the carrying value of net…1.) Abracada owns 90% interest of Deli Co. The following information are provided below: Abracada Co Deli Co Sales 2,000,000 5,400,000 Cost of goods sold (800,000) (2,700,000) Gross profit 1,200,000 2,700,000 Operating expenses (800,000) (500,000) Dividend Income 20,000 Net Income 400,000 2,240,000 Abracada Co. sold goods to Deli Co. for 60,000, 20% of these goods were sold for the year. Abracada also sold goods to Abracada Co. for 100,000, 20% of these goods were unsold at the end of the year. The ending inventory for Abracada Co is 240,000 and 100,000 for Deli Co. Compute for the non-controlling interest in Net Income. 2.) On January 3, 2019 Abracada acquired 90% of Deli Co. at book value. The following information is available: 2020 2019 Ending inventory 60,000 40,000 Intercompany Cost of Goods sold 120,000 120,000 Downstream sale 240,000 200,000 Net income - Deli Co. 450,000 400,000 Net income - Abracada Co. 1,100,000 1,000,000 What is the…In each of the following independent situations, determine the dividends received deduction for the calendar year C corporation. Assume that Oak Corporation owns 25%, Elm owns 15% and Mahogany owns 60% of the stock in the corporations paying the dividends. OakCorporation ElmCorporation MahoganyCorporation Income from operations $650,000 $900,000 $825,000 Expenses from operations (525,000) (1,050,000) (830,000) Qualifying dividends 160,000 160,000 160,000 Click here to view the dividend received deduction ownership percentages and corresponding deduction percentage. a. The dividends received deduction for Oak Corporation is b. The dividends received deduction for Elm Corporation is c. The dividends received deduction for Mahogany Corporation is
