Exam 4: Consolidated Financial Statements and Outside Ownership

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Determine the value assigned to the noncontrolling interest as of the date of the acquisition.

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On January 1, 2020, Elva Corp.paid $750,000 for 80% of Fenton Co.when the book value of Fenton's net assets was $800,000.Fenton owned a building with a fair value of $150,000 and a book value of $120,000. Required: At what amount would the building appear on a consolidated balance sheet prepared immediately after the combination, under the acquisition method of accounting for business combinations?

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What is the amount attributable to consolidated noncurrent assets at January 2, 2019?

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Compute Pell's income from Demers for the year ended December 31, 2021.

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How much does Pell record as income from Demers for the year ended December 31, 2020?

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What is the amount of excess land allocation attributed to the controlling interest at the acquisition date?

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When a parent uses the partial equity method throughout the year to account for its 80% investment in an acquired subsidiary, which of the following statements is true at the date immediately preceding the date on which adjustments are made on the consolidated worksheet?

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Prepare a proper presentation of consolidated net income and its allocation for 2019.

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Where should a noncontrolling interest appear on a consolidated balance sheet?

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In consolidation at December 31, 2019, what net adjustment is necessary for Hogan's Patent account?

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How is a noncontrolling interest in the net income of an entity reported in the income statement?

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In consolidation at December 31, 2020, what net adjustment is necessary for Hogan's Patent account?

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McLaughlin, Inc.acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020.Annual amortization of $12,000 relates to the first acquisition.Ellis reports the following figures for 2020: McLaughlin, Inc.acquires 70 percent of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020.Annual amortization of $12,000 relates to the first acquisition.Ellis reports the following figures for 2020:    Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2020. Required: Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020. Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2020. Required: Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020.

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Compute the noncontrolling interest in the net income of Demers at December 31, 2021.

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Compute the noncontrolling interest in Demers at December 31, 2019.

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What is the dollar amount of Float Corp.'s net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition?

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Compute the noncontrolling interest in Demers at December 31, 2021.

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When a subsidiary is acquired sometime after the first day of the fiscal year, which of the following statements is true?

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Compute Pell's investment in Demers at December 31, 2019.

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Compute the noncontrolling interest in the net income of Demers at December 31, 2020.

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