Poppy Corporation Acquired 80 Percent of Seed Corporation's Common Stock

Essay

Poppy Corporation acquired 80 percent of Seed Corporation's common stock on January 1,20X8,for $520,000.At that date,Seed reported common stock outstanding of $250,000 and retained earnings of $375,000.Assume the fair value of the noncontrolling interest on January 1,20X8 was $130,000.The book values and fair values of Seed's assets and liabilities were equal on the acquisition date,except for other intangible assets,which had a fair value $25,000 greater than book value and a 5-year remaining life.Poppy and Seed reported the following data for 20X8 and 20X9:


a.Compute consolidated comprehensive income for 20X8 and 20X9.
b.Compute comprehensive income attributable to the controlling interest for 20X8 and 20X9.