Question:
Computations (upstream sales)
Pop Corporation acquired a 90 percent interest in Son Corporation
at book value on January 1, 2016. Intercompany purchases and sales
and inventory data for 2016, 2017, and 2018, are as follows:
Selected data from the financial statements of Pop and Son at and
for the year ended December 31, 2018, are as follows:
REQUIRED: Prepare well-organized schedules showing
computations for each of the following:
1. Consolidated cost of sales for 2018
2. Noncontrolling interest share for 2018
3. Consolidated net income for 2018
4. Noncontrolling interest at December 31, 2018
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Answer :
Consolidated Financial Statement:
These are the financial statement of a group of smaller companies in
which all the asset and the liability, incomes, and expenses of the
subsidiary company and the parent company is reported as a single
company or business unit.
In the present case, P Corporation acquires S corporation. The P Corporation holds
90% interest in S company.
1.
Compute the consolidated cost of sales using MS-excel as follows:
The result of the above excel table is as follows:
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Hence, the consolidated cost of sales is
2.
Compute the non-controlling interest share using MS-excel as follows:
The result of the above excel table is as follows:
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Hence, non-controlling interest share is
3.
Compute the consolidated net income using MS-excel as follows:
The result of the above excel table is as follows:
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Hence, the consolidated net income of the company is
4.
Compute the non-controlling interest for the year ended 31st December 2018 using
MS-excel as follows:
The result of the above excel table is as follows:
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https://www.coursehero.com/file/64471644/Exam-291pdf/
Hence, the non-controlling interest share for the year ended 31st December 2018 is
This study source was downloaded by 100000864349213 from CourseHero.com on 11-08-2023 02:47:14 GMT -06:00
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