+1(805) 568 7317

on january 1 2012 harrison inc acquired 90 percent of starr company in exchange for 737946

On January 1, 2012, Harrison, Inc., acquired 90 percent of Starr Company in exchange for

$1,125,000 fair value consideration. The total fair value of Starr Company was assessed at

$1,200,000. Harrison computed annual excess fair value amortization of $8,000 based on the difference between Starr’s total fair value and its underlying net asset fair value. The subsidiary reported earnings of $70,000 in 2012 and $90,000 in 2013 with dividend payments of $30,000 each year. Apart from its investment in Starr, Harrison had income of $220,000 in 2012 and

$260,000 in 2013.

a. What is the consolidated net income in each of these two years?

b. What is the ending noncontrolling interest balance as of December 31, 2013?

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now