Reference no: EM132463954
Problem - Clark, Inc., has the following stockholders' equity accounts as of January 1, 2018:
Preferred stock-$150 par, nonvoting and nonparticipating, 7% cumulative dividend $2,130,000
Common stock-$25 par value $4,130,000
Retained earnings $10,130,000
Hampshire Company purchases all of Clark's common stock on January 1, 2018, for $14,320,000. The preferred stock remains in the hands of outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life.
During 2018, Clark reports earning $580,000 in net income and declares $490,000 in cash dividends. Hampshire applies the equity method to this investment.
Required -
1. What is the noncontrolling interest's share of consolidated net income for this period?
2. What is the balance in the Investment in Clark account as of December 31, 2018?
3. What consolidation entries are needed for 2018?
|
Sample recommend the seller''s treats
: What is the probability that exactly nine veterinarians in your sample recommend the seller's treats?
|
|
Prepare journal entry to record the issue of bonds
: Prepare journal entry to record the issue of bonds. This exercise is a Premium or Discount? And what will be the journal entry?
|
|
Create journal entry on book of paladium to record net asset
: Record the investment by Paladium in Seminary using the Equity Method of Accounting.Make a journal entry on the books of Paladium to record the net asset
|
|
Create journal entry on book of paladium to record net asset
: Record the investment by Paladium in Seminary using the Equity Method of Accounting.Make a journal entry on the books of Paladium to record the net asset
|
|
What is the balance in the Investment in Clark account
: Hampshire Company purchases all of Clark's common stock on January 1, 2018, for $14,320,000. What is the balance in the Investment in Clark account
|
|
Calculate the net profit after taxes
: If the bank note interest was 850 and the bond interest was 2,310, what will be the 'net profit before taxes'? Calculate the 'net profit after taxes'
|
|
How much total gross cash inflow should Baloo expect
: How much total gross cash inflow should Baloo expect (i.e., the debits to Cash) for a $1,000, 6%, 6-year bond, if it is purchased at $1,050
|
|
Discuss about the auditors professional responsibilities
: Auditors are required to perform their professional responsibilities within certain standards, codes and frameworks. ExplainDiscuss about Auditors professional
|
|
Reading and analysis of signal encoding
: Reading and analysis of a single specific topic - Signal encoding - Detail description of the methodologies employed in that paper
|