UH Jahuary 1, 2020 High Ltd. Purchased 70% of the shares of Low Ltd for $2,100,000 and on the same day, Low Ltd. purchased 65% of the shares of Middle Ltd for $1,950,000. Any fair value increment/de crement was fully allocated to land. At January 1, 2020 High Ltd. 5,000,000 Low Ltd. Middle Ltd. $ 500,000 1,750,000 $ 2,250,000 Shares $ 4,200.000 3,500 000 $ 7,700,000 Retained Eamings 10,000 000 $ 15,000,000 Net Income (cost basis) Dividends paid $4 2,500,000 350,000 $ 1,000,000 200,000 $4 800,000 100,000 There were no intercompany transactions. Instructions Enter all numbers without dollar signs. Round numbers to the nearest whole dollar do not enter any de cimals in your number. Use commas properly If the amount is zero, enter 0, do not leave any answers blank. For example, a properly formatted number is 125,250 Numbers incorrectly formatted wi th not result in any marks. Based on the consolidated statement of High Ltd at December 31.2020 under the entity method determine the following The non-controlling interest in Middle Ltd.
UH Jahuary 1, 2020 High Ltd. Purchased 70% of the shares of Low Ltd for $2,100,000 and on the same day, Low Ltd. purchased 65% of the shares of Middle Ltd for $1,950,000. Any fair value increment/de crement was fully allocated to land. At January 1, 2020 High Ltd. 5,000,000 Low Ltd. Middle Ltd. $ 500,000 1,750,000 $ 2,250,000 Shares $ 4,200.000 3,500 000 $ 7,700,000 Retained Eamings 10,000 000 $ 15,000,000 Net Income (cost basis) Dividends paid $4 2,500,000 350,000 $ 1,000,000 200,000 $4 800,000 100,000 There were no intercompany transactions. Instructions Enter all numbers without dollar signs. Round numbers to the nearest whole dollar do not enter any de cimals in your number. Use commas properly If the amount is zero, enter 0, do not leave any answers blank. For example, a properly formatted number is 125,250 Numbers incorrectly formatted wi th not result in any marks. Based on the consolidated statement of High Ltd at December 31.2020 under the entity method determine the following The non-controlling interest in Middle Ltd.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
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Transcribed Image Text:The non-controlling interest in Middle Ltd.
A
The non-controlling interest in Low Ltd
The total non-controlling interest
Transcribed Image Text:On January 1,2020 High Ltd. Purchased 70% of the shares of Low Ltd for $2,100,000 and on the
same day, Low Ltd. purchased 65% of the shares of Middle Ltd for $1,950,000. Any fair value
increment/decrement was fully allocated to land.
At January 1, 2020
High Ltd.
24
Low Ltd.
Middle Ltd.
$ 4,200.000
3,500 000
$ 7,700,000
Shares
$ 500,000
5,000,000
10,000 000
$15,000,000
Retained Eamings
1,750,000
$ 2,250,000
Net Income (cost basis)
Dividends paid
2,500,000
350,000
$ 1,000,000
200,000
800,000
100,000
There were no intercompany transactions.
Instructions Enter all numbers without dollar signs. Round numbers to the nearest whole dollar do not
enter any decimals in your number. Use commas properly If the amount is zero, enter 0, do not leave
any answers blank. For example, a properly formatted number is 125.250 Numbers incorrectly
formatted wi th not result in any marks.
Based on the consolidated statement of High Ltd at December 31,2020, under the entity method
determine the following:
The non-controlli ng interest in Middle Ltd!
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