Net income attributable to the noncontrolling interest

Assignment Help Microeconomics
Reference no: EM132423162

On January 1, 2016, Leo Company purchased 80 percent of Natalie Company's capital stock for $584,000 in cash and other assets. Natalie had a book value of $700,000 and the 20 percent noncontrolling interest fair value was $146,000 on that date. On January 1, 2015, Natalie had acquired 30 percent of Leo for $354,250. Leo's appropriately adjusted book value as of that date was $1,147,500.

Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Natalie distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period.

Leo Natalie

Year Comapny Company

2016 $164,000  $35,200 

2017  $186,000   $56,000 

2018  $216,000   $64,400 

  1. If Leo uses the equity method for investment, what is the subsidiary's income recognized by Leo in 2018?
  2. What is the net income attributable to the noncontrolling interest for 2018?

Reference no: EM132423162

Questions Cloud

How can accounting help manage personal finances : Question 1: How can accounting help manage your personal finances?
Magazine that publishes topics in dw and dsss : Identify a conference, journal, or magazine that publishes topics in DW and/or DSSs.
Calculate zonk cost of equity capital : Prompt: After reviewing the data in the table, respond to the problems below. Indicate the answer you believe is correct.
How much goodwill should ivy recognize from the acquisition : If there is a less than 50 percent chance that the subsidiary will be able to utilize the NOL carryforward, how much goodwill should Ivy recognize from the acqu
Net income attributable to the noncontrolling interest : If Leo uses the equity method for investment, what is the subsidiary's income recognized by Leo in 2018?
How to implement and maintain the new webstore system : Pine Valley Furniture's board of directors is ready to review how to implement and maintain the new webstore system.
What were the main factors for the early success of oneplus : What were the main factors accounting for the early success of OnePlus? Will these factors still be relevant as OnePlus moves into the mainstream/mass market?
How blockchain implementation would improve data security : Discussing discussing how a blockchain implementation would improve data security in a military, education, or other context.
What is a treasury share : What is a treasury share? Explain the requirement under Section 67A, Companies Act 1965 for share repurchase.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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