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Summit owns a 90 percent majority voting interest in Treeline In turn Treeline owns a 70 percent majority voting interest in Basecamp In the current year each firm reports the following income and

Summit owns a 90 percent majority voting interest in Treeline. In turn, Treeline owns a 70 percent majority voting interest in Basecamp. In the current year, each firm reports the following income and dividends. Separate Company income figures do not include any investment or dividend income.

In addition, in computing its income on a full accrual basis, Treeline’s acquisition of Basecamp necessitates excess acquisition-date fair value over book value amortizations of $25,000 per year. Similarly, Summit’s acquisition of Treeline requires $20,000 of excess fair-value amortizations.

Required Prepare an Excel spreadsheet that computes the following:

1. Treeline’s income including its equity in Basecamp earnings.

2. Summit’s income including its equity in Treeline’s total earnings.

3. Total entity net income for the three companies.

4. Net income attributable to the noncontrolling interests.

5. Difference between these elements:

Jul 21 2020 View more View Less

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