Consolidation and noncontrolling interest

Assignment Help Finance Basics
Reference no: EM1334283

On January 1, 2010, Doone corporation acquired 60 percent of the outstanding voting stock of Rockne company for 300,000 consideration. At the acquisition date, the fair value of the 40 percent noncontrolling interest was 200,000 and rockne's assets and liabilities had a collective net fair value of 500,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of 160,000 in 2011. Since being acquired, Rockne has regularly supplied inventory to Doone at 25% more than cost. Sales to Doone amounted to 250,000 in 2010 and 300,000 in 2011. Approximately, 30% of the inventory purchased during any one year is not used until the following year:

a. What is the noncontrolling interest share of rockne's 2011 income?

b. Prepare Doone's 2011 consolidated entries required by the intra entity inventory transfers?

Reference no: EM1334283

Questions Cloud

Explain marketing solution : Explain Marketing solution and How does a technology like Groupon change consumer behavior
Loan amortization-compounding quarterly : Find out the payment necessary to amortize loan of $10,000 if interests rate is 8% compound quarterly and there are 20 quarterly payments.
Larger organization what are the steps and procedure : In a larger organization what are the steps and procedure a supervisor must follow terminate an employee for theft or wrong-doing, or just not performing on the job?
Activity-based decision-making using heuristics : Activity-Based Decision-Making using Heuristics to reach conclusions about Insurance Company.
Consolidation and noncontrolling interest : On January 1, 2010, Doone corporation acquired 60 percent of outstanding voting stock of Rockne company for 300,000 consideration. Make Doone's 2011 consolidated entries required by intra entity inventory transfers?
Organize the solution in terms of an introduction : Organize the solution in terms of an introduction, body, and summary/conclusion
Explain marketing solution : Explain Marketing solution and How does a technology like Groupon change consumer behavior and What are the opportunities for marketers to utilize such a business
Requirements of client service and internal administration : Develop mid-level supervisors / managers of individual units and Providing "vision" that goes beyond the day to day tactical requirements of client service and internal administration
Explaining consensus decision-making : Explain consensus decision-making and how to manage agreement.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Explain salvage value and useful life

Explain Salvage Value and Useful Life and use an incremental rate of return analysis to determine which option the engineer should select

  Cost-effectiveness of screening for diseases

Evaluate and explain this statement: Screening for diseases is a cost effective use of health resources. Which part(s) of the health services system, in your view, is/are most responsible for health promotion and disease prevention?

  Computation of current price of the bond

Computation of current price of the bond and What is the current price of the bonds given that they now have 14 year to maturity

  Administrator of a nonprofit community hospital

Illustrate what information do you want to collect. Once you've collected this information.

  Calculation of financial leverage and operating

Calculation of financial leverage, operating and combined leverage and the firm's direct labor costs increase as a result of a new labor contract

  Objective type questions on cost of capital & stock

Objective type questions on Cost of Capital & Stock and Under the MM extension with growth, what is its cost of equity

  Compounded semi-annually for first four years

invested for total 6 years at 6% compounded semi-annually for first four years followed by 12%compounded quarterly for final 2 years.

  Calculation of budgeted production units

Calculation of budgeted production units and budgeted cash receipts at given sales level

  Explain selection of a machine through npv

Explain Selection of a machine through NPV and How much would Allen Company be willing to pay for machine B if the machine promises annual cash inflows

  Background information on the firm

The Shocking Demise of Mr. Thorndike, Prepare a PowerPoint presentation to be presented in class (blackboard) and an Excel worksheet backup that address the case study question(s) and provides:

  Calculation of after-tax cost of debt

Calculation of After-Tax Cost of Debt and calculate the expected net present value, profitability index, internal rate of return

  Growth accounting and neoclassical growth theory

Using the analytical tools of growth accounting and/or the neoclassical (Solow) growth theory, comment on the following real life questions from Asia's economic development.

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