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Yodel Corporation and Devil Dog Company

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Question;Yodel Corporation acquired 90 percent of Devil Dog Company?s common stock on December 31, 2013, at underlying book value. The book values and fair values of Devil Dog?s assets and liabilities were equal, and the fair value of the noncontrolling interest was equal to 10 percent of the total book value of Devil Dog. Devil Dog provided the following trial balance data at December 31, 2013:Required:a. How much did Yodel pay to purchase its shares of Devil Dog?b. If consolidated financial statements are prepared at December 31, 2013, what amount will be assigned to the noncontrolling interest in the consolidated balance sheet?c. If Yodel reported income of $163,000 from its separate operations for 2013, what amount of consolidated net income will be reported for 2013?d. If Yodel had purchased its ownership of Devil Dog on January 1, 2013, at underlying book value and Yodel reported income of $163,000 from its separate operations for 2013, what amount of consolidated net income would be reported for 2013?

 

Paper#39826 | Written in 18-Jul-2015

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