Parent Share NCI Share

(85%) (15%)
Purchase price and implied value 310,000 54,706
Less: Book value of subsidiary equity
Common stock 204,000 36,000
Other contributed capital 46,750 8,250
Retained earnings 17,425 3,075
Total book value 268,175 47,325

Difference between implied & book value 41,825 7,381

Record new goodwill (41,825) (7,381)
Balance - -

Common stock - S Company 240,000

Other contributed capital – S Company 55,000
Retained Earnings – S Company 20,500
Difference between implied and book value 49,206
Investment in S 310,000
NCI equity 54,706
364,706 364,706

300,000 8

Date %Acquired Shares

2,013 10% 30,000

2,014 25% 75,000

2,015 45% 135,000

80% 240,000

Retained
Date
Earnings
41,275 260,000
41,640 540,000
2,015 630,000

$14 x 105,000 shares

37,000 gains
22,500
Total Value Parent Share
(100%) (80%)
364,706 Value implied by purchase price 3,360,000

240,000 Less: Book value of equity acquired

55,000 Common stock 1,920,000
20,500 Retained earnings 504,000
315,500 2,424,000
Difference between implied & book value 936,000
49,206 Record goodwill (936,000)
(49,206) Balance -
-

Change in retained earnings since acquisition

10%
[10% x ($630,000 – 260,000)]

Cost Carrying value (implied) of initial investment

365,000 12
Initial purchase price (75,000 shares at
960,000
13 $12.80/share)
Change in retained earnings since acquisition
1,890,000
14 25%
3,215,000 [25% x ($630,000 – 540,000)]

Carrying value (implied) of initial investment

1,325,000 1,325,000
59,500 59,500
1,384,500 1,384,500

1,470,000
85,500
 NCI Share Total Value
(20%) (100%)
840,000 4,200,000

480,000 2,400,000 2,400,000

126,000 630,000
606,000 3,030,000
234,000 1,170,000
(234,000) (1,170,000)
- -

365000

37000

402000

960000

22500

982500
Parsley Corporation memiliki 90% saham biasa dari Sol Company.
Saham tersebut dibeli seharga $540.000 pada tanggal 1 Januari 2009, ketika laba ditahan Sol Company adalah $ 100.0
Preclosing trial balance untuk kedua perusahaan pada tanggal 31 Desember 2013, disajikan sebagai berikut:

Eliminations
Parsley Co. Sol Co.
Dr. Cr.
Cash 83,000 80,000
Account receivable (net) 213,000 112,500 50,000
Inventory 150,000 110,000 10,000
Investment in Sol Co. 578,250 578,250
Other Assets 500,000 400,000
Dividends declared 100,000 30,000
Purchases 850,000 350,000 10,000 200,000
Other expenses 180,000 137,500
2,654,250 1,220,000

Account payable 70,000 30,000

Other liabilities 75,000 40,000
Common stock 800,000 500,000 540,000
Retained earnings 562,000 120,000
Sales 1,100,000 530,000 200,000
Equity in Subsidiary Income 47,250 0
2,654,250 1,220,000

Ending Inventory 200,000 120,000

Pada 1 Januari 2013, inventory Sol Company termasuk S30.000 dari laba
yang dicatat oleh Parsley Corporation pada penjualan 2012.
Selama 2013, Parsley Corporation melakukan penjualan antar perusahaan
sebesar $ 200.000 dengan kenaikan biaya 25%. Ending inventory Parsley
Company termasuk barang yang dibeli pada tahun 2013 dari Parsley
dengan harga $ 50.000. Parsley Corporation menggunakan metode parsial
equity untuk mencatat investasinya di Sol Company.

Eliminations
Parsley Co. Sol Co.
Dr. Cr.
Income Statement
Sales 1,100,000 530,000 200,000
Equity in Sol Co. income 47,250 - 47,250
Total revenue 1,147,250 530,000
Cost of Goods Sold 850,000 350,000 10,000 200,000
30,000
Other Expenses 180,000 137,500
Total cost and expenses 1,030,000 487,500
Net Income 117,250 42,500
NCI in Income
Net Income 117,250 42,500 257,250 230,000

Retained Earnings Statement

Retained Earnings 1/1
Parsley 562,000 24,000
Sol Co. 120,000 120,000
Add: Net Income 117,250 42,500 257,250 230,000
Less: Dividends declared (100,000) (30,000) 24,000
Retained Earnings 12/31 579,250 132,500 401,250 254,000

Balance Sheet
Cash 83,000 80,000
Accounts Receivable-net 213,000 112,500
Inventories 150,000 110,000 10,000
Investment in Sol Co. 578,250 565,750
12,500
Other assets 500,000 400,000
Total Assets 1,524,250 702,500

Accounts Payable 70,000 30,000

Other liabilities 75,000 40,000
Common Stock 800,000 500,000 500,000
Retained Earnings 579,250 132,500 401,250 254,000
NCI in Net Assets 6,000 124,000

Total Equities 1,524,250 702,500 907,250 966,250

l Company adalah $ 100.000.
sebagai berikut:

Consolidated
NCI
Balance
163,000
275,500
270,000

900,000
130,000
1,390,000
317,500
3,874,250 3,446,000
-
100,000
115,000
760,000
682,000 311,750
1,430,000
47,250
3,874,250 3,134,250
-
320,000

Consolidated Total COGS

NCI
Balance Intercompany sales 200,000 150,000
Intercompany COGS 160,000 120,000
1,430,000 Gross profit 40,000 30,000
 -
1,430,000
980,000

317,500
1,297,500
132,500
12,500 (12,500)
12,500 120,000

538,000
-
12,500 120,000
(6,000) (100,000)
6,500 558,000

163,000
325,500
250,000
-

900,000
1,638,500 59,000

100,000
115,000
800,000
6,500 558,000
118,000
124,500 124,500
1,697,500
 1,740,000 1,740,000
300 300,000
197.8 197,800

65.2 65,200
2,303,000 2,303,000

Inventory on Hand
50,000
40,000
10,000
-