Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 7, Problem 8P
To determine
Identify the appropriate answer for the given statement from the given choices.
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Arnold Corporation holds 70 percent of Belvista, which, in turn, owns 70 percent of Stang. Separate operating income figures (excluding investment income) and intra-entity upstream gains (on assets remaining within the consolidated group) included in the income for the current year follow:What is the amount of consolidated net income attributable to the noncontrolling interests?a. $143,100b. $163,500c. $183,000d. $213,900
Arnold Corporation holds 70 percent of Belvista, which, in turn, owns 70 percent of Stang. Separate operating income figures (excluding investment income) and intra-entity upstream gains (on assets remaining within the consolidated group) included in the income for the current year follow:
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Arnold
Belvista
Stang
Seperate operating income
$625000
$305000
$240000
Intra-entity gains
-0-
18000
50000
What is the amount of consolidated net income attributable to the noncontrolling interests? Choose the correct.a. $143,100b. $163,500c. $183,000d. $213,900
The following separate income statements are for Burks Company and its 80 percent–owned subsidiary, Foreman Company:
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Burks
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Foreman
Revenues
$
(446,000
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$
(346,000
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Expenses
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274,000
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248,000
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Gain on sale of equipment
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0
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(38,000
)
Equity earnings of subsidiary
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(72,000
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Net income
$
(244,000
)
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$
(136,000
)
Outstanding common shares
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60,000
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40,000
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Additional Information
Amortization expense resulting from Foreman’s excess acquisition-date fair value is $45,000 per year.
Burks has convertible preferred stock outstanding. Each of these 15,000 shares is paid a dividend of $4 per year. Each share can be converted into four shares of common stock.
Stock warrants to buy 20,000 shares of Foreman are also outstanding. For $20, each warrant can be converted into a share of Foreman’s common stock. The fair value of this stock is $25 throughout the year. Burks owns none of these warrants.
Foreman has convertible bonds payable…
Chapter 7 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - On January 1, 2016, Uncle Company purchased 80...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Clarke has a controlling interest in Rogerss...Ch. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 1DYSCh. 7 - Prob. 2DYS
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