On 9/1/06, Panco acquired 80% of Sanco's outstanding common stock. Both entities have December 31 year-ends. Selected data for each of the companies for 2006 follow:
Required:
a. Determine the consolidated net income to be reported for 2006 under the parent company concept.
b. Compute the noncontrolling interest deduction for 2006 under the parent company concept.
c. Determine the amount of dividends to be reported in the consolidated statement of retained earnings for 2006.
d. Determine the consolidated net income for 2006 under the economic unit concept.

Question

On 9/1/06, Panco acquired 80% of Sanco's outstanding common stock. Both entities have December 31 year-ends. Selected data for each of the companies for 2006 follow:
  Required:
a. Determine the consolidated net income to be reported for 2006 under the parent company concept.
b. Compute the noncontrolling interest deduction for 2006 under the parent company concept.
c. Determine the amount of dividends to be reported in the consolidated statement of retained earnings for 2006.
d. Determine the consolidated net income for 2006 under the economic unit concept.

Quizplus · Accepted Answer

The Answer of On 9/1/06, Panco acquired 80% of Sanco's outstanding common stock. Both entities have December 31 year-ends. Selected data for each of the companies for 2006 follow:
  Required:
a. Determine the consolidated net income to be reported for 2006 under the parent company concept.
b. Compute the noncontrolling interest deduction for 2006 under the parent company concept.
c. Determine the amount of dividends to be reported in the consolidated statement of retained earnings for 2006.
d. Determine the consolidated net income for 2006 under the economic unit concept.

On 9/1/06, Panco Acquired 80% of Sanco's Outstanding Common Stock