On January 1,2014 Paki Inc.bought 75% interest in Adam Corporation.At the time of purchase,Adam owned 80% of Baird Company.In all acquisitions,the book value equals the fair value,which equals the acquisition cost.Separate earnings (loss)(excluding investment income)for the three affiliates for 2014 are as follows:
Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2014.

Question

On January 1,2014 Paki Inc.bought 75% interest in Adam Corporation.At the time of purchase,Adam owned 80% of Baird Company.In all acquisitions,the book value equals the fair value,which equals the acquisition cost.Separate earnings (loss)(excluding investment income)for the three affiliates for 2014 are as follows:  
Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2014.

Quizplus · Accepted Answer

The Answer of On January 1,2014 Paki Inc.bought 75% interest in Adam Corporation.At the time of purchase,Adam owned 80% of Baird Company.In all acquisitions,the book value equals the fair value,which equals the acquisition cost.Separate earnings (loss)(excluding investment income)for the three affiliates for 2014 are as follows:  
Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki and affiliates for 2014.