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Problem 08-13 (LO5) A Company owris 75% of B Company and 40% of Company. B Company owns 40% of Company. The following information was assembled at December 31, Year 7. $ Company 49,00 110,000 216,000 110,200 Company $ 20,569 49,000 63, NO Cash Accounts receivable Inventory Trestment in C Investment in B Property, plant, and equipment Accumulated depreciation A Company 118,300 210,000 287,000 14,450 454, 350 2,200,000 (1,070, 000) $ 2,294,100 $ 112,000 480,000 270,000 (95,000) $397,500 $ 7,800 Accounts payable Bonds payable Preferred shares Common shares Retained earnings, January 1 Net Income Dividends 1,500,000 (588.800) $ 1,398,000 $ 93,099 700,000 50,000 400,000 95,000 60,000 1,200,000 523,300 123,800 (65,600) $2,294,100 200,000 75,500 25,000 $ 1,390,000 $ 307,500 Additional Information . A Company purchased its 40% interest in c Company on January 1. Year 4. On that date, the negative acquisition differential of $22,500 on the 40% investment was allocated to equipment with an estimated useful life of 10 years. A Company purchased its 75% of B Company's common shares on January 1, Year 6. On that date, the 100% implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $83,200 to patents to be amortized over eight years. The preferred shares of B Company are non cumulative. . On January 1. Year 6. B Company's accumulated depreciation was $450,000. . On January 1. Year 7B Company purchased its 40% interest in Company for $110.200. The carrying amount of c Company's Trentino Additional Information A Company purchased its 40% interest in C Company on January 1, Year 4. On that date, the negative acquisition differential of $22,500 on the 40% investment was allocated to equipment with an estimated useful life of 10 years. . A Company purchased its 75% of B Company's common shares on January 1, Year 6. On that date, the 100% implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $83,200 to patents to be amortized over eight years. The preferred shares of B Company are non-cumulative. . On January 1, Year 6, B Company's accumulated depreciation was $450,000 . On January 1, Year 7. B Company purchased its 40% interest in C Company for $110,200. The carrying amount of Company's Identifiable net assets approximated fair value on this date and C Company's accumulated depreciation was $19,500. The inventory of B Company contains a profit of $4,400 on merchandise purchased from A Company. The inventory of A Company contains a profit of $4,500 on merchandise purchased from Company . On December 31, Year 7 A Company owes $25,000 to C Company and B Company owes $2.500 to A Company . Both A Company and B Company use the equity method to account for their investments but have made no equity method adjustments in Year 7 An income tax rate of 40% is used for consolidation purposes. Required: (a) Calculate non-controlling interest's share of consolidated net income for Year 7 (Round your intermediate computations to nearest whole dollar value. Omit S sign in your response.) Non-controlling Interest's share of consolidated net income (b) Prepare a consolidated statement of retained earnings for Year 7 (Round your intermediate computations to nearest whole dollar value. Input all values as positive numbers. Omit S sign in your response.) (b) Prepare a consolidated statement of retained earnings for Year 7. (Round your intermediate computations to nearest whole dollar value. Input all values as positive numbers. Omit S sign in your response.) A Company Consolidated Retained Earnings Statement For the Year Ended December 31, Year Balance Jan. 1 $ Net income Less: Dividends Balance Dec. 1 (c) Prepare a consolidated balance sheet as at December 31, Year 7 (Amounts to be deducted should be indicated by a minus sign. Round your intermediate computations to nearest whole dollar value.) (c) Prepare a consolidated balance sheet as at December 31. Year 7 (Amounts to be deducted should be indicated by a minus sign. Round your intermediate computations to nearest whole dollar value.) December Assets $ Liabilities and Equity $ 0 Problem 08-13 (LO5) A Company owris 75% of B Company and 40% of Company. B Company owns 40% of Company. The following information was assembled at December 31, Year 7. $ Company 49,00 110,000 216,000 110,200 Company $ 20,569 49,000 63, NO Cash Accounts receivable Inventory Trestment in C Investment in B Property, plant, and equipment Accumulated depreciation A Company 118,300 210,000 287,000 14,450 454, 350 2,200,000 (1,070, 000) $ 2,294,100 $ 112,000 480,000 270,000 (95,000) $397,500 $ 7,800 Accounts payable Bonds payable Preferred shares Common shares Retained earnings, January 1 Net Income Dividends 1,500,000 (588.800) $ 1,398,000 $ 93,099 700,000 50,000 400,000 95,000 60,000 1,200,000 523,300 123,800 (65,600) $2,294,100 200,000 75,500 25,000 $ 1,390,000 $ 307,500 Additional Information . A Company purchased its 40% interest in c Company on January 1. Year 4. On that date, the negative acquisition differential of $22,500 on the 40% investment was allocated to equipment with an estimated useful life of 10 years. A Company purchased its 75% of B Company's common shares on January 1, Year 6. On that date, the 100% implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $83,200 to patents to be amortized over eight years. The preferred shares of B Company are non cumulative. . On January 1. Year 6. B Company's accumulated depreciation was $450,000. . On January 1. Year 7B Company purchased its 40% interest in Company for $110.200. The carrying amount of c Company's Trentino Additional Information A Company purchased its 40% interest in C Company on January 1, Year 4. On that date, the negative acquisition differential of $22,500 on the 40% investment was allocated to equipment with an estimated useful life of 10 years. . A Company purchased its 75% of B Company's common shares on January 1, Year 6. On that date, the 100% implied acquisition differential was allocated $40,000 to buildings with an estimated useful life of 20 years, and $83,200 to patents to be amortized over eight years. The preferred shares of B Company are non-cumulative. . On January 1, Year 6, B Company's accumulated depreciation was $450,000 . On January 1, Year 7. B Company purchased its 40% interest in C Company for $110,200. The carrying amount of Company's Identifiable net assets approximated fair value on this date and C Company's accumulated depreciation was $19,500. The inventory of B Company contains a profit of $4,400 on merchandise purchased from A Company. The inventory of A Company contains a profit of $4,500 on merchandise purchased from Company . On December 31, Year 7 A Company owes $25,000 to C Company and B Company owes $2.500 to A Company . Both A Company and B Company use the equity method to account for their investments but have made no equity method adjustments in Year 7 An income tax rate of 40% is used for consolidation purposes. Required: (a) Calculate non-controlling interest's share of consolidated net income for Year 7 (Round your intermediate computations to nearest whole dollar value. Omit S sign in your response.) Non-controlling Interest's share of consolidated net income (b) Prepare a consolidated statement of retained earnings for Year 7 (Round your intermediate computations to nearest whole dollar value. Input all values as positive numbers. Omit S sign in your response.) (b) Prepare a consolidated statement of retained earnings for Year 7. (Round your intermediate computations to nearest whole dollar value. Input all values as positive numbers. Omit S sign in your response.) A Company Consolidated Retained Earnings Statement For the Year Ended December 31, Year Balance Jan. 1 $ Net income Less: Dividends Balance Dec. 1 (c) Prepare a consolidated balance sheet as at December 31, Year 7 (Amounts to be deducted should be indicated by a minus sign. Round your intermediate computations to nearest whole dollar value.) (c) Prepare a consolidated balance sheet as at December 31. Year 7 (Amounts to be deducted should be indicated by a minus sign. Round your intermediate computations to nearest whole dollar value.) December Assets $ Liabilities and Equity $ 0

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