ACC-401-Homework-Ch-4

Apr 30th, 2015
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Common Stock - Succo Company 300,000 Other Contributed Capital - Succo Company 100,000 Retained Earnings 1/1/17 - Succo Company 160,000 Investment in Succo Company 532,000 Noncontrolling Interest 28,000 $520,000 x .05 + (.05 x ($160,000 - $120,000)) = 28,000 Equity Income ($40,000)(.95) 38,000

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Leah PasternakAdvanced Accounting ACC401Chapter 4: Consolidated Financial Statements After Acquisition / Homework SubmissionExercise 4-2 Workpaper entries 12/31/13 Cost Method Investment in Salt Co 99,000 Retained Earnings 1/1 - Park Co 99,000 ($160,000 $50,000)*.90) Dividend Income 9,000 Dividends Declared Salt Co 9,000 Parent Non- Entire Share Controlling Value Purchase price and implied value 465,000 51,667 516,667 Less: Book value: 450,000 50,000 500,000 Difference between IV and BV 15,000 1,667 16,667 Allocated to undervalued land (15,000) (1,667) (16,667) Balance 0 0 0 Common Stock - Salt Co 450,000 Retained Earnings 1/1/13 - Salt Co 160,000 Land 16,667 Investment in Salt Co ($465,000 + $99,000) 564,000 Non-controlling Interest ($51,667 + .10 x ($160,000 $50,000) 62,667Exercise 4-3 Workpaper entries 12/31/17 Equity MethodThe balance in the investment account at the beginning of the year is $532,000, which is computed as:[$4

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