Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method. On January 1, 2009, Telconnect acquires 70 percent of

Note: Problems 1 through 37 assume the use of the acquisition method.Problems 38 through 40 assume the use of the purchase method.
On January 1, 2009, 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 5-year remaining life.Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests.Bandmor earns income and pays cash dividends as follows:
On December 31, 2011, Telconnect owes $22,000 to Bandmor.
a.If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2011
b.If Telconnect has applied the initial value method, what Entry *C is needed for a 2011 consolidation
c.If Telconnect has applied the partial equity method, what Entry *C is needed for a 2011 consolidation
d.What noncontrolling interest balances will appear in consolidated financial statements for 2011

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