Exam 8: Consolidated Cash Flows and Changes in Ownership

On January 1, 2019, Hanson Inc. purchased 54,000 voting shares out of Marvin Inc.'s 90,000 outstanding voting shares for $240,000. On that date, Marvin's common shares and retained earnings were valued at $60,000 and $90,000, respectively. Marvin's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $50,000 in excess of its recorded book value. The equipment was estimated to have a useful life of eight years. Both companies use straight line amortization exclusively. On January 1, 2020, Hanson purchased an additional 9,000 shares of Marvin Inc. on the open market for $45,000. On this date, Marvin's book values were equal to its fair values with the exception of the company's equipment, which is now thought to be undervalued by $60,000. Moreover, the equipment's estimated useful life was revised to 5 years on this date. Marvin's net income and dividends for 2019 and 2020 are as follows: Net Incorne Dividends Marvin's goodwill suffered an impairment loss of $5,000 during 2019. Hanson Inc. uses the equity method to account for its investment in Marvin Inc. By how much would the non-controlling interest amount have changed as a result of Hanson's second purchase of shares on January 1, 2020?

P Corp. owns 800 voting common shares out of Q Corp.'s 1,000 outstanding voting common shares, which it accounts for using the equity method. On December 31, 2018, the shareholder's equity section of Q Corp. was comprised of $15,000 in common shares and retained earnings with the amount of $450,000. Q Corp. reported net Income and paid dividends of $120,000 and $20,000 respectively for the year ended December 31, 2019. There have been no goodwill impairment losses since acquisition. On January 1, 2020, P Corp. sold 200 shares of its investment in Q Corp. for $125,000. On January 1, 2019, the investment account had a balance of $420,000. The acquisition differential was to be allocated as follows: 60% to patents (6 year remaining life). 30% to equipment (9 year remaining life). What is the amount of Goodwill that arose from P's investment in Q?

ABC Inc. purchased 35,000 voting shares out of 123 Inc.'s 50,000 outstanding voting shares for $350,000 on January 1, 2020. On the date of acquisition, 123's common shares and retained earnings were valued at $120,000 and $180,000, respectively. 123's book values approximated its fair values on the acquisition date with the exception of a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $30,000 and $20,000 respectively. On January 2, 2020, ABC sold 7,000 shares of 123 on the open market for $57,750. ABC Inc. uses the equity method to account for its investment in 123 Inc. What would be the carrying amount of the "Investment in 123 Inc." account after the sale?

The trial balances of Ash Inc. and its subsidiary Cinder Corp. on December 31, 2020 are shown below: Ash Cinder Inventory \ 160,000 \ 100,000 Plant and Equipment (net) \ 2,700,000 \ 700,000 Dividends Declared \ 200,000 \ 100,000 Investment in Cinder \ 700,000 Cost of Goods Sold \ 650,000 \ 90,000 Other Expenses \ 50,000 \ 10,000 Total Assets \ 4,460,000 \ 1,000,000 Liabilities \ 1,000,000 \ 150,000 Common Shares \ 1,660,000 \ 600,000 Retained Earnings \ 600,000 \ 100,000 Sales and Other Revenue \ 1,200,000 \ 150,000 Total Liabilities and Equity \ 4,460,000 \ 1,000,000 Other Information: Ash acquired Cinder in three stages: january 1, 2017: Ash purchased 10,000 shares for \ 100,000 . Cinder's Retained Earnings were \ 40,000 on that date. The investment is classified as fair value through profit or loss (FVTPL). january 1, 2019: Ash purchased 30,000 shares for \ 450,000 . Cinder's Retained Earnings were \ 80,000 on that date. Ash has obtained significant influence in the key decisions for Cinder. December 31,2020: Ash purchased 20,000 shares for \ 150,000 . Cinder's Retained Earnings were \ 100,000 on that date. Ash now owns 60\% and has control over Cinder. Cinder was incorporated on January 1, 2015. On that date, Cinder issued 100,000 voting shares. Any difference between the cost and book value is attributable entirely to trademarks, which are to be amortized over 5 years. The company has neither issued nor retired shares since the date of its incorporation. Ash sold depreciable assets to Cinder at a loss of $20,000 on January 1, 2019. These assets had a 10 year remaining life. Intercompany sales of inventory during 2020 amounted to $250,000. Unrealized inventory profits for each company are shown below for 2020. The amounts indicate the amount of profit in each company's inventory. Ash January 1,2020: \ 10,000 December 31,2020: \ 20,000 Cinder January 1,2020: \ 20,000 December 31,2020: \ 40,000 All inventories on hand at the start of 2020 were sold to outsiders during the year. The net incomes of both companies are evenly earned throughout the year. Both companies are subject to an effective corporate tax rate of 20%. What amount will be shown in the consolidated balance sheet of Ash as at December 31, 2020, for trademarks?

On January 1, 2019, Hanson Inc. purchased 54,000 voting shares out of Marvin Inc.'s 90,000 outstanding voting shares for $240,000. On that date, Marvin's common shares and retained earnings were valued at $60,000 and $90,000, respectively. Marvin's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $50,000 in excess of its recorded book value. The equipment was estimated to have a useful life of eight years. Both companies use straight line amortization exclusively. On January 1, 2020, Hanson purchased an additional 9,000 shares of Marvin Inc. on the open market for $45,000. On this date, Marvin's book values were equal to its fair values with the exception of the company's equipment, which is now thought to be undervalued by $60,000. Moreover, the equipment's estimated useful life was revised to 5 years on this date. Marvin's net income and dividends for 2019 and 2020 are as follows: Net Incorne Dividends Marvin's goodwill suffered an impairment loss of $5,000 during 2019. Hanson Inc. uses the equity method to account for its investment in Marvin Inc. What effect would the purchase at January 1, 2020 have on the consolidated equity of Hanson?

On January 1, 2019, Philcorp acquired 8,000 of the outstanding 10,000 shares of Anderco by issuing its own shares with a market value of $400,000. On June 30, 2020, Philcorp sold 3,500 shares for cash consideration of $60 per share on open market. Immediately before the sale, the shareholders' equity of Anderco amounted to $500,000 and the unamortized purchase discrepancy was $65,000. Philcorp uses the equity method to record its investment in Anderco. Required: Prepare the journal entry(ies) Philcorp would make to record the gain or loss resulting from the disposition of the shares?

Parrot Company purchased 75% of the outstanding common shares and 50% of the outstanding preference shares of Saltines Inc. on January 1, 2020, on which date the balance sheet and fair values of Saltines' assets and liabilities were as follows: Saltines Inc. Balance Sheet as at December 31, 2019 Book Values Fair Values Cash \ 130,000 \ 130,000 Accounts receivable 120,000 110,000 Inventory 320,000 290,000 Capital assets (net) 720,000 800,000 \ 1,290,000 Current liabilities \ 190,000 \ 190,000 Long-term debt 300,000 300,000 Common shares 300,000 Preferred shares 200,000 Contributed surplus 50,000 Retained earnings 250,000 \ 1,290,000 Parrot paid $460,000 for the common shares and $105,000 for the preference shares. The contributed surplus arose from the issue of the preferred shares at a price higher than their stated value. The preferred shares paid cumulative dividends of 5% of their stated value but dividends for 2018 and 2019 were unpaid. The shares were redeemable, at the option of the issuer, at a premium of 8%. The capital assets of Saltines had a remaining useful life of ten years at January 1, 2010. Any unallocated acquisition differential would be treated as goodwill, which is assessed annually for impairment. Parrot accounts for its interest in Saltines using the cost method and accounts for the non-controlling interest in its consolidated financial statements using the fair value enterprise method. Parrot's net income for 2020 was $300,000 and Parrot paid dividends of $150,000 on December 31, 2020. Saltines' net income for 2020 was $120,000 before a loss from discontinued operations of $60,000 (net of tax). Saltines paid dividends of $75,000 in 2020. (Parrot included all dividends received in its income for 2020.) Calculate the amount of the non-controlling interest on the consolidated balance sheet of Parrot and its subsidiary as at December 31, 2020.

On January 1, 2017, Lime Inc. acquired 80,000 common shares of Stone Corp. for $900,000. On January 1, 2017 Stone's balance sheet showed the following shareholders' equity: \ 3 cumulative preferred shares, 20,000 shares issued \ 120,000 Common shares, 100,000 shares issued \ 600,000 Surplus (Deficit) (\ 10,000 \ 710,000 * Stone's preferred share dividends were one year in arrears on that date. Stone's fair values approximated its book values on that date with the following exceptions:  Inventory had a fair value that was $30,000 higher than its book value. Plant and equipment had a fair value $10,000 lower than their book value.  The plant and equipment had an estimated remaining useful life of 10 years from the date of acquisition. The financial statements of Lime Inc. and its subsidiary Stone Corp. on December 31, 2020 are shown below: LIME Inc. STONE Corp. RETAINED EARNINGS STATEMENTS Balance, January 1, 2020 \ 200,000 \ 370,000 Net Income \ 350,000 \ 222,000 Less: dividends (\ 25,000) (\ 100,000) Retained earnings \ 525,000 \ 492,000 BALANCE SHEETS Cash \ 120,000 \ 3,000 Accounts receivable \ 270,000 \ 255,000 Inventory \ 165,000 \ 144,000 Land \ 210,000 Plant and equipment \ 1,200,000 \ 2,100,000 Accumulated depreciation (\ 690,000) (\ 900,000) Investment in Stone (common) \ 900,000 Total Assets \ 2,175,000 \ 1,602,000 Accounts payable \ 276,000 \ 330,000 Accrued liabilities \ 24,000 \ 30,000 Preferred shares \ 150,000 Common shares \ 1,350,000 \ 600,000 Retained earnings \ 525,000 \ 492,000 Total Liabilities and Equity \ 2,175,000 \ 1,602,000 Other Information:  Intercompany sales of inventory for 2020 were as follows: Lirne to Stone: \ 50,000 Stone to Lime: \ 40,000  Unrealized intercompany profits in inventory for 2020 were as follows: January 1, 2020: Stone's Inventory \ 10,000 Lime's Inventory \ 20,000 December 31, 2020: Stone's Inventory \ 6,000 Lime's Inventory \ 8,000  On January 1, 2018, Stone sold equipment to Lime for $30,000. The equipment had a carrying value of $27,000 on that date and an estimated useful life of 3 years. The inventory on hand at the start of 2020 was sold to outsiders during the year.  Both companies are subject to a tax rate of 40%. There were no dividends in arrears on December 31, 2019. Lime uses the cost method to account for its investment in Stone. Compute the Goodwill on the date of the acquisition.

ABC Inc. purchased 35,000 voting shares out of 123 Inc.'s 50,000 outstanding voting shares for $350,000 on January 1, 2020. On the date of acquisition, 123's common shares and retained earnings were valued at $120,000 and $180,000, respectively. 123's book values approximated its fair values on the acquisition date with the exception of a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $30,000 and $20,000 respectively. On January 2, 2020, ABC sold 7,000 shares of 123 on the open market for $57,750. ABC Inc. uses the equity method to account for its investment in 123 Inc. What is ABC's ownership interest in 123 after its sale?

Beta Corp. owns 80% of Gamma Corp. The Consolidated Financial Statements of Beta Corp. for 2019 and 2020 are shown below: Beta Corp. Consolidated Balance Sheet Cash \ 180,000 \ 40,000 Accounts Receivable \ 300,000 \ 100,000 Inventory \ 400,000 \ 100,000 Land \ 160,000 \ 200,000 Plant and Equipment \ 1,650,000 \ 1,170,000 Accumulated Depreciation (\ 800,000) (\ 770,000) Goodwill \ 60,000 \ 60,000 Total Assets \ 1,950,000 \ 900,000 Accounts Payable \ 326,000 \ 40,000 Accrued Liabilities \ 350,000 \ 140,000 Bonds Payable \ 400,000 \ 100,000 Less Bond Discount (\ 40,000) (\ 50,000) Non-Controlling Interest \ 214,000 \ 200,000 Common Shares \ 350,000 \ 350,000 Retained Earnings \ 350,000 \ 120,000 Total Liabilities and \ 1,950,000 \ 900,000 Equity Beta Corp. Consolidated Income Statement, For the year ended December 31, 2020 Sales \ 500,000 Cost of sales \1 15,000 Depreciation \ 30,000 Interest expense \ 50,000 Gain on land sale (\ 10,000) (\ 185,000) Net income \ 315,000 Attributable to: Shareholders of Parent \ 300,000 Non-Controlling Interest \ 15,000 Other Information: Beta purchased its interest in Gamma on January 1, 2016 for $360,000 when the company's net assets were valued at $300,000. The acquisition differential was allocated equally between goodwill and equipment, which was estimated to have a remaining useful life of ten years from the acquisition date. Gamma reported a net income of $75,000 and paid dividends of $5,000 during 2020. Beta issued $300,000 in bonds during the year. Beta reported an equity method net Income of $300,000 and paid $70,000 in dividends to its shareholders. Required: Prepare a Consolidated Statement of Cash Flows for Beta Corp. for 2020. Beta Corp. Consolidated Statement of Cash Flows

The trial balances of Ash Inc. and its subsidiary Cinder Corp. on December 31, 2020 are shown below: Ash Cinder Inventory \ 160,000 \ 100,000 Plant and Equipment (net) \ 2,700,000 \ 700,000 Dividends Declared \ 200,000 \ 100,000 Investment in Cinder \ 700,000 Cost of Goods Sold \ 650,000 \ 90,000 Other Expenses \ 50,000 \ 10,000 Total Assets \ 4,460,000 \ 1,000,000 Liabilities \ 1,000,000 \ 150,000 Common Shares \ 1,660,000 \ 600,000 Retained Earnings \ 600,000 \ 100,000 Sales and Other Revenue \ 1,200,000 \ 150,000 Total Liabilities and Equity \ 4,460,000 \ 1,000,000 Other Information: Ash acquired Cinder in three stages: january 1, 2017: Ash purchased 10,000 shares for \ 100,000 . Cinder's Retained Earnings were \ 40,000 on that date. The investment is classified as fair value through profit or loss (FVTPL). january 1, 2019: Ash purchased 30,000 shares for \ 450,000 . Cinder's Retained Earnings were \ 80,000 on that date. Ash has obtained significant influence in the key decisions for Cinder. December 31,2020: Ash purchased 20,000 shares for \ 150,000 . Cinder's Retained Earnings were \ 100,000 on that date. Ash now owns 60\% and has control over Cinder. Cinder was incorporated on January 1, 2015. On that date, Cinder issued 100,000 voting shares. Any difference between the cost and book value is attributable entirely to trademarks, which are to be amortized over 5 years. The company has neither issued nor retired shares since the date of its incorporation. Ash sold depreciable assets to Cinder at a loss of $20,000 on January 1, 2019. These assets had a 10 year remaining life. Intercompany sales of inventory during 2020 amounted to $250,000. Unrealized inventory profits for each company are shown below for 2020. The amounts indicate the amount of profit in each company's inventory. Ash January 1,2020: \ 10,000 December 31,2020: \ 20,000 Cinder January 1,2020: \ 20,000 December 31,2020: \ 40,000 All inventories on hand at the start of 2020 were sold to outsiders during the year. The net incomes of both companies are evenly earned throughout the year. Both companies are subject to an effective corporate tax rate of 20%. Compute consolidated inventory for Ash as at December 31, 2020.

Whine purchased 80% of the outstanding voting shares of Dine Inc. on December 31, 2020. The balance sheets of both companies on that date are shown below (after Whine acquired the shares): WHINE DINE Cash \ 250,000 \ 200,000 Accounts Receivable \ 450,000 \ 300,000 Inventory \ 500,000 \ 100,000 Investment in Dine Inc. \ 500,000 Land \ 140,000 Equipment (net) \ 460,000 \ 200,000 Total Assets Current Liabilities \ 900,000 \ 200,000 Bonds Payable \ 500,000 \ 100,000 Common Shares \ 500,000 \ 200,000 Retained Earnings \ 400,000 \ 300,000 Total Liabilities and Equity \ \ Also on December 31, 2020 (after the financial statements appearing above had been prepared) Chompster Inc., one of Whine's main competitors has agreed to acquire an equity interest in Dine Inc. As a result of the agreement, Dine Inc. would issue another 8,000 shares (over and above the 32,000 shares it currently has outstanding) to Chompster for $20 per share. The acquisition differential on the date of acquisition was attributed entirely to equipment, which had a remaining useful life of ten years from the date of acquisition. Whine Inc. uses the equity method to account for its investment in Dine Inc. There were no unrealized intercompany profits on December 31, 2020. The amount of goodwill appearing on the December 31, 2020 consolidated balance sheet would be:

Whine purchased 80% of the outstanding voting shares of Dine Inc. on December 31, 2020. The balance sheets of both companies on that date are shown below (after Whine acquired the shares): WHINE DINE Cash \ 250,000 \ 200,000 Accounts Receivable \ 450,000 \ 300,000 Irventory \ 500,000 \ 100,000 Irvestrnent in Dine Inc. \ 500,000 Land \ 140,000 Equipment (nat) \ 460,000 \ 200,000 Total Assets Current Liabilities \ 900,000 \ 200,000 Bonds Payable \ 500,000 \ 100,000 Cornmon Shares \ 500,000 \ 200,000 Retained Earnings \ 400,000 \ 300,000 Total Linbilities and Equity \2 ,300,000 \ 300,000 Also on December 31, 2020 (after the financial statements appearing above had been prepared) Chompster Inc., one of Whine's main competitors has agreed to acquire an equity interest in Dine Inc. As a result of the agreement, Dine Inc. would issue another 8,000 shares (over and above the 32,000 shares it currently has outstanding) to Chompster for $20 per share. The acquisition differential on the date of acquisition was attributed entirely to equipment, which had a remaining useful life of ten years from the date of acquisition. Whine Inc. uses the equity method to account for its investment in Dine Inc. There were no unrealized intercompany profits on December 31, 2020. What would be the amount of cash appearing on Whine's December 31, 2020 consolidated balance sheet (after the issue of shares to Chompster)?

Whine purchased 80% of the outstanding voting shares of Dine Inc. on December 31, 2020. The balance sheets of both companies on that date are shown below (after Whine acquired the shares): WHINE DINE Cash \ 250,000 \ 200,000 Accounts Receivable \ 450,000 \ 300,000 Inventory \ 500,000 \ 100,000 Investment in Dine Inc. \ 500,000 Land \ 140,000 Equipment (net) \ 460,000 \ 200,000 Total Assets Current Liabilities \ 900,000 \ 200,000 Bonds Payable \ 500,000 \ 100,000 Common Shares \ 500,000 \ 200,000 Retained Earnings \ 400,000 \ 300,000 Total Liabilities and Equity \ \ Also on December 31, 2020 (after the financial statements appearing above had been prepared) Chompster Inc., one of Whine's main competitors has agreed to acquire an equity interest in Dine Inc. As a result of the agreement, Dine Inc. would issue another 8,000 shares (over and above the 32,000 shares it currently has outstanding) to Chompster for $20 per share. The acquisition differential on the date of acquisition was attributed entirely to equipment, which had a remaining useful life of ten years from the date of acquisition. Whine Inc. uses the equity method to account for its investment in Dine Inc. There were no unrealized intercompany profits on December 31, 2020. The amount of retained earnings appearing on the December 31, 2020 consolidated balance sheet would be:

ABC Inc. purchased 35,000 voting shares out of 123 Inc.'s 50,000 outstanding voting shares for $350,000 on January 1, 2020. On the date of acquisition, 123's common shares and retained earnings were valued at $120,000 and $180,000, respectively. 123's book values approximated its fair values on the acquisition date with the exception of a patent and a trademark, neither of which had been previously recorded. The fair values of the patent and trademark on the date of acquisition were $30,000 and $20,000 respectively. On January 2, 2020, ABC sold 7,000 shares of 123 on the open market for $57,750. ABC Inc. uses the equity method to account for its investment in 123 Inc. What percentage of its Investment in 123 was sold by ABC?

Whine purchased 80% of the outstanding voting shares of Dine Inc. on December 31, 2020. The balance sheets of both companies on that date are shown below (after Whine acquired the shares): WHINE DINE Cash \ 250,000 \ 200,000 Accounts Receivable \ 450,000 \ 300,000 Inventory \ 500,000 \ 100,000 Investment in Dine Inc. \ 500,000 Land \ 140,000 Equipment (net) \ 460,000 \ 200,000 Total Assets Current Liabilities \ 900,000 \ 200,000 Bonds Payable \ 500,000 \ 100,000 Common Shares \ 500,000 \ 200,000 Retained Earnings \ 400,000 \ 300,000 Total Liabilities and Equity \ \ Also on December 31, 2020 (after the financial statements appearing above had been prepared) Chompster Inc., one of Whine's main competitors has agreed to acquire an equity interest in Dine Inc. As a result of the agreement, Dine Inc. would issue another 8,000 shares (over and above the 32,000 shares it currently has outstanding) to Chompster for $20 per share. The acquisition differential on the date of acquisition was attributed entirely to equipment, which had a remaining useful life of ten years from the date of acquisition. Whine Inc. uses the equity method to account for its investment in Dine Inc. There were no unrealized intercompany profits on December 31, 2020. What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2020 before the issue of shares to Chompster?

On January 1, 2017, Lime Inc. acquired 80,000 common shares of Stone Corp. for $900,000. On January 1, 2017 Stone's balance sheet showed the following shareholders' equity: \ 3 cumulative preferred shares, 20,000 shares issued \ 120,000 Common shares, 100,000 shares issued \ 600,000 Surplus (Deficit) (\ 10,000 \ 710,000 * Stone's preferred share dividends were one year in arrears on that date. Stone's fair values approximated its book values on that date with the following exceptions:  Inventory had a fair value that was $30,000 higher than its book value. Plant and equipment had a fair value $10,000 lower than their book value.  The plant and equipment had an estimated remaining useful life of 10 years from the date of acquisition. The financial statements of Lime Inc. and its subsidiary Stone Corp. on December 31, 2020 are shown below: LIME Inc. STONE Corp RETAINED EARNINGS STATEMENTS Balance, January 1, 2020 \ 200,000 \ 370,000 Net Income \ 350,000 \ 222,000 Less: dividends (\ 25,000) (\ 100,000) Retained earnings \ 525,000 \ 492,000 BALANCE SHEETS Cash \ 120,000 \ 3,000 Accounts receivable \ 270,000 \ 255,000 Inventory \ 165,000 \ 144,000 Land \ 210,000 Plant and equipment \ 1,200,000 \ 2,100,000 Accumulated depreciation (\ 690,000) (\ 900,000) Investment in Stone (common) \ 900,000 Total Assets \ 2,175,000 \ 1,602,000 Accounts payable \ 276,000 \ 330,000 Accrued liabilities \ 24,000 \ 30,000 Preferred shares \ 150,000 Common shares \ 1,350,000 \ 600,000 Retained earnings \ 525,000 \ 492,000 Total Liabilities and Equity \ 2,175,000 \ 1,602,000 Other Information:  Intercompany sales of inventory for 2020 were as follows: Lime to Stone: \ 50,000 Stone to Lime: \ 40,000  Unrealized intercompany profits in inventory for 2020 were as follows: January 1, 2020: Stone's Inventory \ 10,000 Lime's Inventory \ 20,000 December 31, 2020: Stone's Inventory \ 6,000 Lime's Inventory \ 8,000  On January 1, 2018, Stone sold equipment to Lime for $30,000. The equipment had a carrying value of $27,000 on that date and an estimated useful life of 3 years. The inventory on hand at the start of 2020 was sold to outsiders during the year.  Both companies are subject to a tax rate of 40%. There were no dividends in arrears on December 31, 2019. Lime uses the cost method to account for its investment in Stone. Prepare a calculation of non-controlling interest as at December 31, 2020. Total Non-Controlling Interest $481,240 ($150,000 + $331,240)

The following information pertains to the shareholdings of an affiliated group of companies. The respective ownership interest of each company is outlined below. A Inc.: A Inc. owns 75% of J Inc. and 60% of G Inc. J Inc.: J Inc. owns 60% of D Inc. and 20% of G Inc. G Inc.: G Inc. owns 10% of D Inc. and 80% of Y Inc. All intercompany investments are accounted for using the equity method. The Net Incomes for these companies for the year ended December 31, 2020 were as follows: A Inc. \ 1,000,000 J Inc. \ 200,000 G Inc. \ 600,000 D Inc. \ 300,000 Y Inc. \ 100,000 Unrealized intercompany profits (pre-tax) earned by the various companies for the year ended December 31, 2020 are shown below: G Inc. \ 10,000 Y Inc. \ 10,000 J Inc. \ 20,000 All companies are subject to a 25% tax rate. What is the Consolidated Net Income for the year attributable to the shareholders of A Inc.?

On January 1, 2019, Hanson Inc. purchased 54,000 voting shares out of Marvin Inc.'s 90,000 outstanding voting shares for $240,000. On that date, Marvin's common shares and retained earnings were valued at $60,000 and $90,000, respectively. Marvin's book values approximated its fair values on the acquisition date with the exception of the company's equipment, which was estimated to have a fair value that was $50,000 in excess of its recorded book value. The equipment was estimated to have a useful life of eight years. Both companies use straight line amortization exclusively. On January 1, 2020, Hanson purchased an additional 9,000 shares of Marvin Inc. on the open market for $45,000. On this date, Marvin's book values were equal to its fair values with the exception of the company's equipment, which is now thought to be undervalued by $60,000. Moreover, the equipment's estimated useful life was revised to 5 years on this date. Marvin's net income and dividends for 2019 and 2020 are as follows: Net Income Dividends ,000 Marvin's goodwill suffered an impairment loss of $5,000 during 2019. Hanson Inc. uses the equity method to account for its investment in Marvin Inc. Assuming that Hanson had no recorded goodwill prior to January 1, 2019, what would be the amount of goodwill appearing on Hanson's December 31, 2019 consolidated balance sheet?

Whine purchased 80% of the outstanding voting shares of Dine Inc. on December 31, 2020. The balance sheets of both companies on that date are shown below (after Whine acquired the shares): WHINE DINE Cash \ 250,000 \ 200,000 Accounts Receivable \ 450,000 \ 300,000 Inventory \ 500,000 \ 100,000 Investment in Dine Inc. \ 500,000 Land \ 140,000 Equipment (net) \ 460,000 \ 200,000 Total Assets Current Liabilities \ 900,000 \ 200,000 Bonds Payable \ 500,000 \ 100,000 Common Shares \ 500,000 \ 200,000 Retained Earnings \ 400,000 \ 300,000 Total Liabilities and Equity \ \ Also on December 31, 2020 (after the financial statements appearing above had been prepared) Chompster Inc., one of Whine's main competitors has agreed to acquire an equity interest in Dine Inc. As a result of the agreement, Dine Inc. would issue another 8,000 shares (over and above the 32,000 shares it currently has outstanding) to Chompster for $20 per share. The acquisition differential on the date of acquisition was attributed entirely to equipment, which had a remaining useful life of ten years from the date of acquisition. Whine Inc. uses the equity method to account for its investment in Dine Inc. There were no unrealized intercompany profits on December 31, 2020. What would be the amount of the non-controlling interest appearing on Whine's consolidated balance sheet as at December 31, 2020 after the issue of shares to Chompster?