On October 1, 2017, Pamela Company purchased 90% of the common stock of Shingle Company for $290,000. Additional information for both companies for 2017 follows:
Any difference between implied and book value relates to Shingle's land. Pamela uses the cost method to record its investment in Shingle. Shingle Company's income was earned evenly throughout the year.
Required:
A. Prepare the workpaper entries that would be made on a consolidated statements workpaper on December 31, 2017. Use the full year reporting alternative.
B. Calculate the controlling interest in consolidated net income for 2017.

Question

On October 1, 2017, Pamela Company purchased 90% of the common stock of Shingle Company for $290,000. Additional information for both companies for 2017 follows: 
 Any difference between implied and book value relates to Shingle's land. Pamela uses the cost method to record its investment in Shingle. Shingle Company's income was earned evenly throughout the year.
Required:
A. Prepare the workpaper entries that would be made on a consolidated statements workpaper on December 31, 2017. Use the full year reporting alternative.
B. Calculate the controlling interest in consolidated net income for 2017.

Quizplus · Accepted Answer

The Answer of On October 1, 2017, Pamela Company purchased 90% of the common stock of Shingle Company for $290,000. Additional information for both companies for 2017 follows: 
 Any difference between implied and book value relates to Shingle's land. Pamela uses the cost method to record its investment in Shingle. Shingle Company's income was earned evenly throughout the year.
Required:
A. Prepare the workpaper entries that would be made on a consolidated statements workpaper on December 31, 2017. Use the full year reporting alternative.
B. Calculate the controlling interest in consolidated net income for 2017.

On October 1, 2017, Pamela Company Purchased 90% of the Common