- Platinum Corporation Acquired 11 900 Shares Of The Common Stock And 700 Shares Of The 8 Percent Preferred Stock Of Silve 1 (71.93 KiB) Viewed 28 times
Platinum Corporation acquired 11,900 shares of the common stock and 700 shares of the 8 percent preferred stock of Silver Company on December 31, 20X4, at the book value of the underlying stock interests. At that date, the fair value of the noncontrolling Interest in Silver's common stock was equal to 30 percent of the book value of its common stock Interest. Silver reported the following balance sheet amounts on January 1, 20x5: Cash Accounts Receivable Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets $ 31, eee Accounts Payable 81, cea Bonds Payable 128, bea Preferred Stock 699,000 Common Stock (136,000) Retained Earnings $ 713,280 Total Liabilities & Equities $ 81,800 97,880 175,000 170,880 190,000 $713,880 Silver's preferred stock is $100 par value, and its common stock is $10 par value. The preferred dividends are cumulative and are two years in arrears on January 1, 2005. Silver reports net income of $54,000 for 20x5 and pays no dividends. Required: a. Present the worksheet consolidation entry needed to prepare a consolidated balance sheet on January 1, 20X5. (If no entry Is required for a transaction/event, select "No Journal entry required" In the first account field.) view transaction list transaction list No Event Accounts Debit Credit A 1 175.000 170,000 190,000 Preferred stock Common stock Retained earnings Investment in Silver Company CS Investment in Silver Company PS NCI in NA of Silver Company 232,400 81.200 221,400
b. Assuming that Platinum reported income from its separate operations of $89,000 in 20X5, compute the amount of consolidated net Income and the amount of Income to be assigned to the controlling shareholders in the 20x5 consolidated Income statement. $ 143,000 Consolidated net income Income to controlling interest $ 130,130