On January 1,2014,Singh Company Acquired an 80 Percent Interest in Gonzalez

Essay

On January 1,2014,Singh Company acquired an 80 percent interest in Gonzalez Company for $300,000.On January 1,2014,Gonzalez's total stockholders' equity was $375,000.The fair value and book value of Gonzalez's individual assets and liabilities were equal.
On January 2,2014,Gonzalez Company acquired a 10 percent interest in Singh Company for $50,000.On January 2,2014,Singh's total stockholders' equity was $500,000.The fair value and book value of Singh's individual assets and liabilities were equal.
For the year ending December 31,2014,the following data is available:
$$\begin{array} { l cc } & { \text { Net income } }&\text { Dividends } \\\text { Singh Company } & \$ 40,000 & \$ 0 \\\text { Gonzalez Company } & \$ 10,000 & \$ 0\end{array}$$ The treasury stock method is used to account for the mutual stock holdings between Singh and Gonzalez.The separate net incomes do not include investment income.
Required:
1.What is Gonzalez's income from Singh for 2014?
2.What is Singh's income from Gonzalez for 2014?
3.What is the noncontrolling interest share associated with Gonzalez Company for 2014?
4.Prepare the elimination entry for Gonzalez's Investment in Singh Company.