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Micron Corporation owns 75 percent of the common s...

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Micron Corporation owns 75 percent of the common shares and 60 percent of the preferred shares of Stanley Company, all acquired at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest in Stanley's common stock was equal to 25 percent of the book value of its common stock. The balance sheets of Micron and Stanley immediately after the acquisition contained these balances: Stanley's preferred stock pays a 12 percent dividend and is cumulative. For 20X8, Stanley reports net income of $40,000 and pays no dividends. Micron reports income from its separate operations of $75,000 and pays dividends of $30,000 during 20X8. 10. Based on the preceding information, what is the total noncontrolling interest reported in the consolidated balance sheet as of January 1, 20X8? A. $80,000 B. $40,000 C. $50,000 D. $60,000 11. Based on the preceding information, what is the income assigned to the noncontrolling interest in the 20X8 consolidated income statement? A. $10,000 B. $7,000 C. $11,800 D. $4,800 12. Based on the preceding information, what amount of income is attributable to the controlling interest in the consolidated income statement for 20X8? A. $75,000 B. $105,000 C. $96,000 D. $103,200 13. Based on the preceding information, what is the total stockholders' equity reported in the consolidated balance sheet as of January 1, 20X8? A. $450,000 B. $530,000 C. $490,000 D. $370,000 14. Based on the preceding information, what amount is reported as preferred stock outstanding reported in the consolidated balance sheet as of January 1, 20X8? A. $0 B. $40,000 C. $50,000 D. $44,000

 

Paper#3649 | Written in 18-Jul-2015

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