On January 1, 2015, Pub Corporation made a significant acquisition, purchasing 75 percent of Sub Corporation's outstanding voting stock for a total of $4,200,000. Sub Corporation's stockholders' equity at that time was made up of the following components (all values in thousands):
On January 1, 2015, Pub Corporation made a significant acquisition, purchasing 75 percent of Sub Corporation's outstanding voting stock for a total of $4,200,000. Sub Corporation's
| Capital stock with a par value of $10: | $2,000 |
| Additional paid-in capital: | $1,200 |
| $1,500 | |
| Total stockholders' equity: | $4,700 |
The surplus fair value of the net assets obtained from this acquisition was allocated as follows: 10 percent to underappreciated inventory (which was subsequently sold in 2015), 40 percent to underappreciated plant assets with a remaining useful life of eight years, and the remaining 50 percent to
Fast forward to December 31, 2019, and we have the comparative
| Pub | Sub | |
| Other assets - net | $5,845 | $4,500 |
| Investment in Sub - 75% | 3,640 | - |
| Expenses (including cost of sales) | 5,285 | 800 |
| Dividends | 600 | 300 |
| $15,370 | $5,600 | |
| Capital stock, $10 par | $4,000 | $2,000 |
| Additional paid-in capital | 850 | 1,200 |
| Retained earnings | 2,670 | 1,500 |
| Sales | 7,380 | 900 |
| Income from Sub | 470 | - |
| $15,370 | $5,600 |
R E Q U I R E D:
Determine the amounts that would appear in the consolidated financial statements of Pub Corporation and Sub for each of the following:
1. Goodwill at December 31, 2019
2. Non-controlling interest share for 2019
3. Consolidated retained earnings at December 31, 2018
4. Consolidated retained earnings at December 31, 2019
5. Consolidated net income for 2019
6. Non-controlling interest at December 31, 2018
7. Non-controlling interest at December 31, 2019
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Determine the amounts that would appear in the consolidated financial statements of Pub
Corporation and Sub for each of the following:
4. Consolidated
5. Consolidated net income for 2019
6. Non-controlling interest at December 31, 2018
7. Non-controlling interest at December 31, 2019
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