McLaughlin, Inc. acquires 70% of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020. Annual amortization of $12,000 relates to the first acquisition. Ellis reports the following figures for 2020: Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2020.Required:Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020.

Question

McLaughlin, Inc. acquires 70% of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020. Annual amortization of $12,000 relates to the first acquisition. Ellis reports the following figures for 2020:  Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2020.Required:Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020.

Quizplus · Accepted Answer

The Answer of McLaughlin, Inc. acquires 70% of Ellis Corporation on September 1, 2019, and an additional 10 percent on November 1, 2020. Annual amortization of $12,000 relates to the first acquisition. Ellis reports the following figures for 2020:  Without regard for this investment, McLaughlin earns $480,000 in net income ($840,000 revenues less $360,000 expenses; incurred evenly through the year) during 2020.Required:Prepare a schedule of consolidated net income and apportionment to noncontrolling and controlling interests for 2020.