p4-5

account nick NV kim NV

sales $900 $4,700
cost of good sold ($6,100) ($3,000)
depreciation expense ($1,000) ($500)
other expense ($150) ($700)
income from kim NV $450
net income $3,000 $500
consolidated net income
NI share of noncontrolling interst
NI share of nick NV
retained earnings january, 1 $11,200 $4,000
net income $3,000 $500
dividend declared ($600) ($100)
retained earnings december, 31 $13,600 $4,400
cash ($1,500) ($100)
account receivable ($1,400) ($600)
inventories ($2,000) ($1,000)
other current assets ($1,000) ($900)
land ($3,300) ($2,800)
building ($4,000) ($3,400)
equipment ($2,100) ($1,900)
investment in kim NV ($9,360)
goodwill
total assets ($24,960) ($11,300)
account payable $4,100 $1,300
other liabilities $3,860 $600
NCI in january,1
NCI in december, 31
common stock $3,400 $5,000
retained earnings december,31 $13,600 $4,400
total liabilities $24,960 $11,300

debits are entered with patents

price told by nick NV for 90 % share $9,000,000
fair market value 10 % non-interest $1,000,000
total fair value $10,000,000
less : net assets value of kim NV $9,000,000
excees of price paid over book value $1,000,000
allocation of excess of price paid
inventory ($100,000)
building $600,000
goodwill $500,000
investment in subsidiary december,31
price paid for acquisition $9,000,000
add : income from kim NV $450,000
less : dividends declared ($90,000)
investment in subsidiary december,31 $9,360,000
depreciation on building
NCI on january, 1 $1,000,000
NCI on december, 31
NCI on january, 1 $1,000,000
add : net income $40,000
less : dividends declared ($10,000)
NCI on december, 31 $1,030,000
consolidation entries noncontrolling controlling
debit credit interest totals
$14,500
($9,100)
($100) ($1,600)
($850)
($450) $0
$2,950
$11,200
$40 $290
($600)
($4,000) $13,510
($1,900)
$90 $10 ($1,800)
($3,500)
($1,900)
$200 ($6,100)
$100 ($7,900)
($4,000)
$0
($600) $100 ($500)
($27,600)
$9,360 ($5,200)
($500) $4,460

($200) $1,030
$3,400
$1,000 $13,510
$1,030 $27,600
($5,000)

($10,850) $10,850