SOLVED: 40. Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 70 percent of its Subsidiary.During 2022.the Parent company reports net in come (by itself,without any investment income from its Sub (2024)

Question

40. Effect on consolidated net income of acquisition of affiliate's debt from non-affiliate A Parent Company owns 70 percent of its Subsidiary.During 2022.the Parent company reports net in come (by itself,without any investment income from its Subsidiary) of $975.000 and the subsidiary re ports net income of $455,000.The Subsidiary had a bond payable outstanding on January 1 2022,with a carrying value equal to $715,000.The face amount of this bond is $650.000.The Parent acquired the bond on January 1,2022,for $734,500.During 2022,the Parent reported interest income (related to the bond of $71,500 while the Subsidiary reported interest expense (related to the bond of $67.600.What is consolidated net income attributable to the controlling interest for the year ended December 31.2022 41.Effect on consolidated net income attributable to noncontrolling interest of affiliate's debt acquired from non-affiliate Refer to the facts in Multiple Choice #4o.above.What is consolidated net income attributable to the noncontrolling interest for the year ended December 31.2022? $115,050 C. $136.500 b.$130,650 d $156.780

Submitted by Christine H. Oct. 28, 2023 10:16 a.m.

Instant AI Video

12 people are viewing now

This problem has been solved!

Try Numerade free for 7 days

View This Answer

Instant Answer

EXPERT VERIFIED

More Than Just

We take learning seriously. So we developed a line of study tools to help students learn their way.

Ace Chat

Your personal AI tutor, companion, and study partner. Available 24/7.

Ask Our Educators

Ask unlimited questions and get video answers from our expert STEM educators.

Notes & Exams

Millions of real past notes, study guides, and exams matched directly to your classes.

Video Answers to Similar Questions

Best Matched Videos Solved By Our Expert Educators

07:58 BEST MATCH The accountant for Consolidated Enterprises Inc. has justfinished preparing a consolidated balance sheet, income statement,and statement of changes in retained earnings for 20X3. Theaccountant has asked for assistance in preparing a statement ofcash flows for the consolidated entity. Consolidated Enterprisesholds 80 percent of the stock of Separate Way Manufacturing. Thefollowing items are proposed for inclusion in the consolidated cashflow statement: Decrease in accounts receivable$23,000 Increase in accounts payable10,000 Increase in inventory19,000 Increase in bonds payable127,000 Equipment purchased382,000 Common stock repurchased35,000 Depreciation reported for current period61,000 Gain recorded on sale of equipment9,000 Book value of equipment sold32,000 Goodwill impairment loss3,000 Sales890,000 Cost of goods sold328,000 Dividends paid by parent45,000 Dividends paid by subsidiary30,000 Consolidat…

04:54 Comparative consolidated balance sheet data for BIG Co and its 65% owned subsidiary LITTLE Co are as follows:Item 2020 2019Cash 12,000 25,000Notes receivable (net) 60,000 43,000Supplies inventory 90,000 50,000PPE (net) 100,000 110,000Patent 90,000 105,000Totals 352,000 352,000Accounts payable 80,000 68,000Notes payable LT 50,000 30,000Non-controlling interests 44,000 40,000Common stock 10 $ par 205,000 205,000Retained earnings 18,000 (10,000)Totals 352,000 352,000Additional information:a. The consolidated net income for 2020 is $50,000.b. Little paid $10,000 in dividends during the year. Big paid $17,000 in dividends.c. Little sold $16,000 of supplies to Big during the year.d. There were no sales or purchases of long-term assets during the year.Required:a. Compute the consolidated cash flows from operati…

02:00 On January 2, 20x6, TOTAL Company acquired 90% of the outstanding shares of POWER Company at book value. During 20x6 and 20x7, intercompany sales amounted to P2,000,000 and P4,000,000 respectively. POWER Company consistently recognized a 25% mark-up based on sales, while TOTAL Company had a 25% gross profit on cost. The inventories of the buying affiliate, which all came from intercompany transactions, show:12/31/20x6: TOTAL - 240,000 POWER - 100,000 12/31/20x7: TOTAL - 160,000 POWER - 40,000On October 20x6, TOTAL Company purchased a piece of land costing P1,000,000 from POWER Company for P1,500,000. On December 31, 20x7, TOTAL sold this land to an unrelated party for P1,500,000. On the other hand, on July 1, 20x7, TOTAL Company sold a used machine with a carrying value of P60,000 and a remaining life of 3 years to POWER Company for P42,000.Separate statements of comprehensive income for the two companies for 20x7 follow:POWER COMPANY Sales - 25,000,000 Cost of sales -…

03:42 Problem 1. Investment accounts postacquisitionA subsidiary is acquired on January 1, 2019 at an acquisitioncost of $100 million. The subsidiary's book value at the date ofacquisition was $25 million, consisting of these accounts:Capital stock$ 8,000,000Retained earnings18,000,000Accumulated other comprehensive loss(1,000,000)Following is revaluation information for the subsidiary'sidentifiable net assets at the date of acquisition:Fair ValueBook ValuePlant assets, net$25,000,000$40,000,000Straight-line, 5 yearsIdentifiable intangible assets60,000,0000Straight-line, 6 yearsIt is now December 31, 2021, three years since the acquisition.The subsidiary reported the following amounts during the period2019 - 2021:201920202021Net income$12,000,000$10,000,000$15,000,000Other comprehensive income (loss)300,000(160,000)125,000The subsidiary did not declare any dividends during this period.Goodwill for this acquisition is not impaired as of the end of2021.…

05:00 A company incurred the following transactions:1. Wages of $4,100 accrued at the end of the prior fiscal period were paid this fiscal period.2. Real estate taxes of $5,500 applicable to the current period have not been accrued.3. Interest on bonds payable has not been accrued for the current month.4. The company has outstanding $920,000 of 6.3% bonds.5. The premium related to the bonds in part c has not been amortized for the current month.6. The current-month amortization is $310.7. Based on past experience with its warranty program, the estimated warranty expense for the current period should be 0.4% of sales of $740,000.8. Analysis of the company's income taxes indicates that taxes currently payable are $61,000 and that the deferred tax liability should be increased by $22,000.Required:Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by selecting the amount and indicating whether it is an…

NO COMMENTS YET

Just now.

`+comment+`

`; var commentContainer = document.getElementById('qd-comment-container'); if (!commentContainer) { commentContainer = document.createElement('div'); commentContainer.id = "qd-comment-container"; commentContainer.className = 'qd-comment-container'; document.querySelector('.new-comment-container').parentElement.appendChild(commentContainer); } commentContainer.insertBefore(newComment, commentContainer.firstChild); var allComments = commentContainer.querySelectorAll('.qd-comment'); for (var i = 0; i < allComments.length; i++) { if (i < 3) { allComments[i].classList.remove('hide-5recommended'); } else { allComments[i].classList.add('hide-5recommended'); } } var moreCommentsButton = commentContainer.querySelectorAll('.hide-5recommended-button') if (moreCommentsButton.length == 0) { commentContainer.innerHTML += '

'; } if (allComments.length > 3) $('.hide-5recommended-button').css('display', 'block'); } function addNewReplyToUI(commentId, replyText) { let newReply = document.createElement('div'); newReply.className = 'qd-reply'; newReply.innerHTML = `

Just now.

`+replyText+`

`; var replyBody = document.getElementById('reply_body_'+commentId); var replyContainer = replyBody.querySelector("#qd-reply-container"); if (!replyContainer) { replyContainer = document.createElement('div'); replyContainer.id = "qd-reply-container"; } replyContainer.appendChild(newReply); } function createNewReply(event, commentId) { const newReplyInput = $('#newReply_'+commentId); const replyText = newReplyInput.val().trim(); newReplyInput.val(''); document.getElementById('comment_'+commentId).style.display = 'none'; url = "/ask/comment/"; addNewReplyToUI(commentId, replyText); $.ajax({ type: 'POST', url: url, data: { 'comment': replyText, 'question_id': 119926662, 'parent_id': commentId, 'csrfmiddlewaretoken': 'FD0Rndsno4OM5bLwLQZcAs5A5wYx6gZOuDuZV1EMnnx7Qn4bBgMkM2YTaBglaZ3b', }, success: function (response) { console.log('Reply submitted:', response); }, error: function (error) { console.error('Error submitting:', error); } }); }; function hideAllReplyInputs() { var inputReplies = document.querySelectorAll('.input-reply'); for (var i = 0; i < inputReplies.length; i++) { inputReplies[i].querySelector("textarea").value = ''; inputReplies[i].style.display = 'none'; } } function openReplyInput(e, comment_id) { hideAllReplyInputs(); const replyCommentContainer = document.getElementById('comment_'+comment_id); replyCommentContainer.style.display = 'flex'; const replyCommentInput = $('#newReply_'+comment_id); if ((typeof replyCommentInput === 'undefined') || !replyCommentInput || !replyCommentInput.length) return; toggleSubmitIcon(replyCommentInput, submitReplyIcon); replyCommentInput.on('input', function () { limitTextareaLength(replyCommentInput); autoResizeTextarea(replyCommentInput); toggleSubmitIcon(replyCommentInput, submitReplyIcon); }); } submitCommentIcon.on('click', function () { if (!submitCommentIcon.hasClass('disabled')) { createNewComment(); } }); for (let i = 0; i < currentDBCommentIds.length; i++) { let comment_id = currentDBCommentIds[i]; let replyInput = document.getElementById('open_reply_input_'+comment_id); replyInput.addEventListener('click', function (e) { const commentId = e.currentTarget.id.split('_').pop(); openReplyInput(e, commentId); }); let submitReply = document.getElementById('submit_reply_'+comment_id); submitReply.addEventListener('click', function (e) { if (!submitReplyIcon.hasClass('disabled')) { const commentId = e.currentTarget.id.split('_').pop(); createNewReply(e, commentId); } }); } });