Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $\begin{array}{lr}\text { Preferred stock - } \$ 90 \text { par value, nonvoting and nonparticipating; }\
\text {$ 9 \% $ cumulative dividend }&\$2,700,000\
\text {Common stock - \$25 par value }&5,600,000\
\text {Retained earnings }&14,000,000\
\end{array}$
Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years.
During 2013, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.
What was the non-controlling interest's share of consolidated net income for the year 2013?

Question

Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $\begin{array}{lr}\text { Preferred stock - } \$ 90 \text { par value, nonvoting and nonparticipating; }\
\text {$ 9 \% $ cumulative dividend }&\$2,700,000\
\text {Common stock - \$25 par value }&5,600,000\
\text {Retained earnings }&14,000,000\
\end{array}$
 Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years.
During 2013, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.
What was the non-controlling interest's share of consolidated net income for the year 2013?

Quizplus · Accepted Answer

The Answer of Thomas Inc. had the following stockholders' equity accounts as of January 1, 2013: $\begin{array}{lr}\text { Preferred stock - } \$ 90 \text { par value, nonvoting and nonparticipating; }\
\text {$ 9 \% $ cumulative dividend }&\$2,700,000\
\text {Common stock - \$25 par value }&5,600,000\
\text {Retained earnings }&14,000,000\
\end{array}$
 Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2013, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years.
During 2013, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.
What was the non-controlling interest's share of consolidated net income for the year 2013?

Thomas Inc Kuried Co Acquired All of the Voting Common Stock of Thomas