On January 1, 2023, Annick Co. acquired 70% of Noah Inc. by paying $645,000. The...
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On January 1, 2023, Annick Co. acquired 70% of Noah Inc. by paying $645,000. The fair value of noncontrolling interest was $255,000. Noah reported common stock on that date of $420,000 with retained earnings of $250,000. A building was undervalued on Noah's financial records by $28,000. This building had a ten-year remaining life. Unrecorded copyrights with fair values of $72,000 were to be recognized and amortized over 20 years.
Noah earned income and paid cash dividends as follows: Net income
Net Income
Dividends Paid
2023
105,000
45,600
2024
134,400
61,600
Determine the following:
1. how much goodwill that would be allocated between the controlling and non-controlling interest.
2. What is the consolidated income of the non-controlling interest in the subsidiary at December 31, 2023?
3. What is the ending balance of the non-controlling interest in the consolidated financial statements at December 31, 2024?
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Determine the following: