Determine the amounts that would appear in the consolidated financial statements of Pub Corporation and Sub for each of the following: Goodwill at December 31 after running an impairment test, 2019 Non-controlling interest share for 2019 Consolidated retained earnings at December 31, 2018 Consolidated retained earnings at December 31, 2019 Consolidated net income for 2019 Non-controlling interest at December 31, 2018 Non-controlling interest at December 31, 2019
On January 1, 2015, Pub Corporation made a significant acquisition, purchasing 75 percent of Sub Corporation's outstanding voting stock for a total of $4,200,000. Sub Corporation's
Capital stock with a par value of $10: $2,000
Additional paid-in capital: $1200
Total stockholders' equity: $4700
The surplus fair value of the net assets obtained from this acquisition was allocated as follows: 10 percent to underappreciated inventory (which was subsequently sold in 2015), 40 percent to underappreciated plant assets with a remaining useful life of eight years, and the remaining 50 percent to
Fast forward to December 31, 2019, and we have the comparative
|
|
Pub |
Sub |
|
Other assets—net |
$5,845 |
$4500 |
|
Investment in Sub—75% |
3,640 |
|
|
Expenses (including cost of sales) |
5,285 |
800 |
|
Dividends |
600 |
300 |
|
Total |
$15370 |
$5600 |
|
Capital stock, $10 par |
4000 |
2000 |
|
Additional paid-in capital |
850 |
1200 |
|
Retained earnings |
2670 |
1500 |
|
Sales |
7380 |
900 |
|
Income from Sub |
470 |
|
|
|
|
|
Determine the amounts that would appear in the consolidated financial statements of Pub Corporation and Sub for each of the following:
- Goodwill at December 31 after running an impairment test, 2019
- Non-controlling interest share for 2019
- Consolidated retained earnings at December 31, 2018
- Consolidated retained earnings at December 31, 2019
- Consolidated net income for 2019
- Non-controlling interest at December 31, 2018
- Non-controlling interest at December 31, 2019
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