subsidiary net income bold corporation acquired 75 percent of toll corporation 8217 733522
Subsidiary Net Income
Bold Corporation acquired 75 percent of Toll Corporation’s voting common stock on January 1, 20X4, for $348,000, when the fair value of its net identifiable assets was $464,000 and the fair value of the noncontrolling interest was $116,000. Toll reported common stock outstanding of $150,000 and retained earnings of $270,000. The excess of fair value over book value of Toll’s net assets was attributed to amortizable assets with a remaining life of 10 years. On December 31, 20X4, Toll sold a building to Bold and recorded a gain of $20,000. Income assigned to the noncontrolling shareholders in the 20X4 consolidated income statement was $17,500.
a. Compute the amount of net income Toll reported for 20X4.
b. Compute the amount reported as consolidated net income if Bold reported operating income of $234,000 for 20X4.
c. Compute the amount of income assigned to the controlling interest in the 20X4 consolidated income statement.