On January 1, 2014 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2014 are as follows:
Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2014.

Question

On January 1, 2014 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2014 are as follows:
  Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2014.

Quizplus · Accepted Answer

The Answer of On January 1, 2014 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2014 are as follows:
  Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2014.