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Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
Edition 11ISBN: 978-0538480284Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
Edition 11ISBN: 978-0538480284 Exercise 19
Subsidiary treasury stock. The following comparative statements of stockholders' equity are prepared for Nolan Corporation: 
Tarman Corporation acquires 60% of Nolan Corporation common stock for $12 per share on January 1, 2011, when the latter corporation is formed.
On January 1, 2013, Nolan Corporation purchases 5,000 shares of its own common stock from noncontrolling interests for $15 per share. These shares are accounted for as treasury stock at cost.
Assuming Tarman Corporation uses the cost method to record its investment in Nolan Corporation, prepare the necessary cost-to-simple-equity conversion and the eliminations and adjustments required on the consolidated worksheet as of December 31, 2015. Include all pertinent supporting calculations in good form.
Tarman Corporation acquires 60% of Nolan Corporation common stock for $12 per share on January 1, 2011, when the latter corporation is formed.
On January 1, 2013, Nolan Corporation purchases 5,000 shares of its own common stock from noncontrolling interests for $15 per share. These shares are accounted for as treasury stock at cost.
Assuming Tarman Corporation uses the cost method to record its investment in Nolan Corporation, prepare the necessary cost-to-simple-equity conversion and the eliminations and adjustments required on the consolidated worksheet as of December 31, 2015. Include all pertinent supporting calculations in good form.
Explanation
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Calculate controlling interest in 2015:
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Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
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