Show the calculations and journal entries to record, Financial Accounting

Assignment Help:

Company A subsequently sells 60% of the voting interest in Company S for $900,000. The fair value of Company A's retained interest of 10% in the voting stock in Company S is $120,000. The carrying amount of the identifiable net assets of Company S, exclusive of goodwill, is $770,000 (assume the increase in value was already recorded by Company A by recording a debit to investment and a credit to income, both for $70,000). Assume for purposes of this example that the carrying amount of the NCI under the proportionate method and the fair value method are unchanged from the value at the date of the additional 10% interest purchased by Company A.
Required:
1. Show the calculations and journal entries to record Company A's initial investment in Company S under the fair-value method of accounting for NCI.
2. Show the calculations and journal entries to record Company A's additional investment in Company S under the fair-value method of accounting for NCI.
3. Show the calculations and journal entries to record Company A's sale of its 60% investment in Company S under the fair-value method of accounting for NCI.


Related Discussions:- Show the calculations and journal entries to record

Present value of an uneven series, In actual life cash flows occurring abov...

In actual life cash flows occurring above a period of time are frequently uneven. For illustration, the dividends declared through the companies will change from year to year, as s

Explain the term - providing a service, Explain the term - Providing a serv...

Explain the term - Providing a service One way of viewing accounting is as a form of service. Accountants provide economic information to their 'clients', who are numerous user

Account, list and explain the stages where the errors are deducted for rect...

list and explain the stages where the errors are deducted for rectification.

Artificial intelligence and neural networks, examine the resemblance betwee...

examine the resemblance between Artificial intelligence and neural networks

Annual coupon payment, Arnot International's bonds have a present market pr...

Arnot International's bonds have a present market price of $1,250. The bonds have an 11% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may

Financial strategy IRR, what managers should know about internal rate of re...

what managers should know about internal rate of return (IRR) and why?

Revenue expenditures, Revenue expenditures 1. Are additional costs of plant...

Revenue expenditures 1. Are additional costs of plant assets that do not materially increase the asset's life or its productive capabilities 2. Are known as balance sheet expenditu

Treasury stock, 1-Dec $92,000.00 of 5% bonds are purchased with check. Int...

1-Dec $92,000.00 of 5% bonds are purchased with check. Interest is paid once a year and will mature in 5 years. The market yield for these bonds is 4%.

Investment Property, What are the positive and negative critiques of invest...

What are the positive and negative critiques of investment property

Straight-line discount amortization, Heathrow issues $2,000,000 of 6%, 15-y...

Heathrow issues $2,000,000 of 6%, 15-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,728,224.

Write Your Message!

Captcha
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