On January 1,20X8,Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.At that date,Stamp reported common stock outstanding of $200,000 and retained earnings of $100,000,and the fair value of the noncontrolling interest was $70,000.The book values and fair values of Stamp's assets and liabilities were equal,except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life.Stamp reported the following data for 20X8 and 20X9:
Package reported net income of $100,000 and paid dividends of $30,000 for both the years.
-Based on the preceding information,what is the amount of comprehensive income attributable to the controlling interest for 20X9?
A)$138,750
B)$131,000
C)$128,750
D)$135,000

Question

On January 1,20X8,Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.At that date,Stamp reported common stock outstanding of $200,000 and retained earnings of $100,000,and the fair value of the noncontrolling interest was $70,000.The book values and fair values of Stamp's assets and liabilities were equal,except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life.Stamp reported the following data for 20X8 and 20X9:
  Package reported net income of $100,000 and paid dividends of $30,000 for both the years.
-Based on the preceding information,what is the amount of comprehensive income attributable to the controlling interest for 20X9?
A)$138,750 
B)$131,000 
C)$128,750 
D)$135,000

Quizplus · Accepted Answer

The Answer of On January 1,20X8,Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.At that date,Stamp reported common stock outstanding of $200,000 and retained earnings of $100,000,and the fair value of the noncontrolling interest was $70,000.The book values and fair values of Stamp's assets and liabilities were equal,except for other intangible assets which had a fair value $50,000 greater than book value and an 8-year remaining life.Stamp reported the following data for 20X8 and 20X9:
  Package reported net income of $100,000 and paid dividends of $30,000 for both the years.
-Based on the preceding information,what is the amount of comprehensive income attributable to the controlling interest for 20X9?
A)$138,750 
B)$131,000 
C)$128,750 
D)$135,000

On January 1,20X8,Package Company Acquired 80 Percent of Stamp Company's