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In: Accounting

Park Company purchased 90% of the stock of Salt Company on January 1, 2014, for $465,000,...

Park Company purchased 90% of the stock of
Salt Company on January 1, 2014, for $465,000,
an amount equal to $15,000 in excess of the
book value of equity acquired. This excess
payment relates to an undervaluation of Salt
Company’s land. On the date of purchase, Salt
Company’s retained earnings balance was
$50,000. The remainder of the stockholders’
equity consists of no-par common stock. During
2018, Salt Company declared dividends in the
amount of $10,000, and reported net income of
$40,000. The retained earnings balance of Salt
Company on December 31, 2017, was $160,000.
Park Company uses the cost method to record
its investment.

Required:
a. NCI in Income
b. Calculate the controlling interest in income for 2018, net income for park company in 2018 is 88,000 and park declared dividend in the amount of 28,000

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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