Question
In: Accounting
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on December 31, 2004 with unamortized premium...
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Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on December 31, 2004 with unamortized premium of $120,000. These bonds pay interest semiannually on January 1 and July 1 and mature on January 1, 2010. Straight-line amortization is used. Garden Inc., 80%-owned subsidiary of Willy Wagtail, buys $1,000,000 par value of Willy Wagtail’s outstanding bonds in the market for $980,000. There is only one issue of outstanding bonds of the affiliated companies and they have consolidated financial statements. For the year 2005, Willy Wagtail has income from its separate operations (excluding investment income) of $4,500,000 and Garden reports net income of $600,000. |
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Required: Determine the following: |
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1. |
Noncontrolling interest expense for 2005. |
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2. |
Consolidated net income for Willy Wagtail Company and subsidiary for 2005. |
Please with the explain
Solutions
Expert Solution
NON - CONTROLLING EXPENSE IS ALSO MINORITY EXPENSE WHICH IS INCURRED TO SUBSIDIARY COMPANY, HERE GARDEN CO.
ekkarill92 answered 1 year agoRelated Solutions
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on December 31, 2004 with unamortized premium...
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on
December 31, 2004 with unamortized premium of $120,000. These bonds
pay interest semiannually on January 1 and July 1 and mature on
January 1, 2010. Straight-line amortization is used.
Garden Inc., 80%-owned subsidiary of Willy Wagtail, buys
$1,000,000 par value of Willy Wagtail’s outstanding bonds in the
market for $980,000. There is only one issue of outstanding bonds
of the affiliated companies and they have consolidated financial
statements.
For the...
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on December 31, 2004 with unamortized premium...
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on
December 31, 2004 with unamortized premium of $120,000. These bonds
pay interest semiannually on January 1 and July 1 and mature on
January 1, 2010. Straight-line amortization is used. Garden Inc.,
80%-owned subsidiary of Willy Wagtail, buys $1,000,000 par value of
Willy Wagtail’s outstanding bonds in the market for $980,000. There
is only one issue of outstanding bonds of the affiliated companies
and they have consolidated financial statements. For the...
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on December 31, 2004 with unamortized premium...
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on
December 31, 2004 with unamortized premium of $120,000. These bonds
pay interest semiannually on January 1 and July 1 and mature on
January 1, 2010. Straight-line amortization is used.
Garden Inc., 80%-owned subsidiary of Willy Wagtail, buys
$1,000,000 par value of Willy Wagtail’s outstanding bonds in the
market for $980,000. There is only one issue of outstanding bonds
of the affiliated companies and they have consolidated financial
statements.
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Question 1 (a): Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on December 31, 2004...
Question 1 (a):
Willy Wagtail Company has $4,000,000 of 12% bonds outstanding on
December 31, 2004 with unamortized premium of $120,000. These bonds
pay interest semiannually on January 1 and July 1 and mature on
January 1, 2010. Straight-line amortization is used.
Garden Inc., 80%-owned subsidiary of Willy Wagtail, buys
$1,000,000 par value of Willy Wagtail’s outstanding bonds in the
market for $980,000. There is only one issue of outstanding bonds
of the affiliated companies and they have consolidated financial...
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