Separate earnings and investment percentages for three affiliates for 2014 are as follows:
Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.
Required:
1. Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.
2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.

Question

Separate earnings and investment percentages for three affiliates for 2014 are as follows:
  Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.
Required:
1. Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.
2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.

Quizplus · Accepted Answer

The Answer of Separate earnings and investment percentages for three affiliates for 2014 are as follows:
  Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings do not include investment income.
Required:
1. Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.
2. Determine the controlling interest share of consolidated net income and the noncontrolling interest shares.

Separate Earnings and Investment Percentages for Three Affiliates for 2014