VIPSolutionsgive answer in 2 step with explanation at the end of each step and final answer at the end:22. A company acugires 80% of D company for $600,000 on January, 2020. D company reported common stock of $300,000 and retained carnings of $210,000 on that date. Equipment was undervalued by $40,000 and buildings were undervalued by $50,000, cach having a 10-year remaining life. Any excess consideration transferred over far value was atsbuted to goodwill with an indefinite lfc. Based on annual review, gooduill has not been impaired. During 2020, D company reported net income of $90,000 and paid dividends of $30,000. Assume tha equty metho i applied. What is the acquisition value attributable to the non-controlling interes in D company at January 1.20207 Your answer 23. Based on the same information in Question 2, what i the non-cantroling interest in the net income of D company at December 31,20207 Your answer 24. Based on the same information in Question 22, what i the non-cantroling interest in dividends of D company at December 31, 20207 Your answer 25. Based on the sme information in Question 22, what i the non-contrlling interest in D company at December 31, 20207 Your answer 26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common stock, which represents a 30 percent investment. No allocations to goodwill or other specific accouns were made. Significant influence over O company is achieved by this acquisition, and so B company applis the equity method. O company. declared a $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O company account found in B company's financial records as of December 317 Your answer 27. When should a consolidated entity recognize a goodwill impairment loss? Hint: When the fair value of reporting unit with gaodvwill i (below or shove) its carrying amount Your answer:
Question:
give answer in 2 step with explanation at the end of each step and final answer at the end:
22. A company acugires 80% of D company for $600,000 on January, 2020. D company reported common stock of $300,000 and retained carnings of $210,000 on that date.
Equipment was undervalued by $40,000 and buildings were undervalued by $50,000, cach having a 10-year remaining life. Any excess consideration transferred over far value
was atsbuted to goodwill with an indefinite lfc. Based on annual review, gooduill has not been impaired. During 2020, D company reported net income of $90,000 and
paid dividends of $30,000. Assume tha equty metho i applied. What is the acquisition value attributable to the non-controlling interes in D company at January 1.20207
Your answer
23. Based on the same information in Question 2, what i the non-cantroling interest in the net income of D company at December 31,20207
Your answer
24. Based on the same information in Question 22, what i the non-cantroling interest in dividends of D company at December 31, 20207
Your answer
25. Based on the sme information in Question 22, what i the non-contrlling interest in D company at December 31, 20207
Your answer
26. On January 1, B company paid $2,295,000 to acquire 90,000 shares of O company's voting common stock, which represents a 30 percent investment. No allocations to
goodwill or other specific accouns were made. Significant influence over O company is achieved by this acquisition, and so B company applis the equity method. O company.
declared a $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O company account found in B company's
financial records as of December 317
Your answer
27. When should a consolidated entity recognize a goodwill impairment loss? Hint: When the fair value of reporting unit with gaodvwill i (below or shove) its carrying amount
Your answer:
Asked by: Aman Kori
Created at: 2025-10-16 03:35:46
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