On January 1, 2014, P Company purchased an 80% interest in S Company for $628,000, at which time S Company had retained earnings of $301,200 and common stock of $333,900. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that Pand S Companies reported net incomes from their independent operations of $196,200 and $99,600, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014. Controlling Interest in Consolidated Net Income %24 Noncontrolling Interest in Consolidated Net Income

On January 1, 2014, P Company purchased an 80% interest in S Company for $628,000, at which time S Company had retained earnings of $301,200 and common stock of $333,900. Any difference between book value and the value implied by the purchase price was entirely attributable to a patent with a remaining useful life of 10 years. Assume that Pand S Companies reported net incomes from their independent operations of $196,200 and $99,600, respectively. Calculate the controlling interest and noncontrolling interest in consolidated net income for the year ended December 31, 2014. Controlling Interest in Consolidated Net Income %24 Noncontrolling Interest in Consolidated Net Income

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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