Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / On January 1 2016 Telconnect acquires 70 percent of Bandmor for $490000 cash The remaining...

On January 1 2016 Telconnect acquires 70 percent of Bandmor for $490000 cash The remaining 30 percent of Bandmor s shares continued to trade at a total value

On January 1, 2016, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor s shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the company s financial records by $30,000. This patent had a five-year remaining life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and non-controlling interests. Bandmor earns net income and declares cash dividends as follows: Year __________ Net Income ___________ Dividends 2016 ................. $ 75,000 ..................... $39,000 2017 ................... 96,000 ....................... 44,000 2018 ................. 110,000 ....................... 60,000 On December 31, 2018, Telconnect owes $22,000 to Bandmor. a. If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2018? b. If Telconnect has applied the initial value method, what Entry *C is needed for a 2018 consolidation? c. If Telconnect has applied the partial equity method, what Entry *C is needed for a 2018 consolidation? d. What non-controlling interest balances will appear in consolidated financial statements for 2018?

Apr 22 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions