On January 1, 2013, BAZINGA Co. purchased 80% of MEEMAW Co.'s outstanding stock for $62,000. At that date, all of MEEMAW's assets and liabilities had market values approximately equal to their book values and no goodwill was included in the purchase price. The following information was available for 2013: Income from own operations of Parent-$15,000 Operating Loss of Subsidiary-$2,000 Dividends paid in 2013 by parent-$7,500 Dividends paid by Subsidiary to Parent-$1,200. On July 1 ,2013, there was a downstream sale of equipment at a gain of $2,500. The equipment is expected to have a remaining useful life of 10 years from the date of sale. Also, on January 1, 2013, there was an upstream sale of furniture at a loss of $750. The furniture is expected to have a useful life of five years from the date of sale. Non-controlling interest is measured at fair value. Determine the consolidated net income attributable to the parent shareholders' equity.
On January 1, 2013, BAZINGA Co. purchased 80% of MEEMAW Co.'s outstanding stock for $62,000. At that date, all of MEEMAW's assets and liabilities had market values approximately equal to their book values and no
Income from own operations of Parent-$15,000
Operating Loss of Subsidiary-$2,000
Dividends paid in 2013 by parent-$7,500
Dividends paid by Subsidiary to Parent-$1,200.
On July 1 ,2013, there was a downstream sale of equipment at a gain of $2,500. The equipment is expected to have a remaining useful life of 10 years from the date of sale. Also, on January 1, 2013, there was an upstream sale of furniture at a loss of $750. The furniture is expected to have a useful life of five years from the date of sale.
Non-controlling interest is measured at fair value.
Determine the consolidated net income attributable to the parent shareholders' equity.
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