Question regarding consolidated net income

Assignment Help Accounting Basics
Reference no: EM13115868

Ace Company reports current earnings of $400,000 while paying $40,000 in cash dividends. Byrd Company earns $100,000 in net income and distributes $10,000 in dividends. Ace has held a 70 percent interest in Byrd for several years, an investment that it originally purchased at a price equal to the book value of the underlying net assets. Ace uses the cost method to account for these shares. On January 1 of the current year, Byrd acquired in the open market $50,000 of Ace's 8 percent bonds. The bonds had originally been issued several years ago for 92, reflecting a 10 percent effective interest rate. On the date of purchase, the book value of the bonds payable was $48,300. Byrd paid $46,600 based on a 12 percent effective interest rate over the remaining life of the bonds.

What is consolidated net income for this year prior to reduction for the noncontrolling interest's share of the subsidiary's net income?

Reference no: EM13115868

Problem related to acquistion method

Bailey, inc. buys 60% of the outstanding stock of luebs, inc. Luebs owns a piece at cost of $200000 but was worth $500000 at acquistion date. What value should be attributed

Indicating appropriate income tax allocation

Develop a memo to Texaco Inc’s chief accountant indicating the appropriate income tax allocation required for the above items, comprising the appropriate balance sheet presen

What is meant by an entity functional currency

What is meant by an entity's functional currency and what are the economic indicators indentified by the FASB to provide guidance in selecting the functional currency? Why i

Semiannual interest payments

If the market interest rate is 8%, the bonds will issue at $450,518. Record the bond issue on January 1, 2012, and the first two semiannual interest payments on June 30, 201

Balance in the paid-in capital

On August 1, it reissued the remaining treasury shares at $49 per share. What is the balance in the Paid-in Capital, Treasury Stock account on August 2?

Solving rate of return with excel

You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700.

Business accounts receivable

Rons sells his business accounts receivable of $100,000 to Mike for $80,000 (80% of the face value of the accounts reveivable). Mike later determines that he will be able to

Eveluate teh companys three year financila performace

Select an Company in Malaysia ( Excluding Financial Sector ) which is listed in Bursa Malaysia. Analyse and Eveluate teh companys three year financila performace , based on

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd