On September 1,2013,Beck Corporation acquired an 80% interest in Johnsen Corporation for $700,000.Johnsen's stockholders' equity at January 1,2013 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings.The book values of its assets and liabilities were equal to their respective fair values on this date.All excess purchase cost was attributed to goodwill.
During 2013,Johnsen uniformly earned $78,000 and paid dividends of $9,000 on each of four dates: February 1,June 1,August 1,and December 1.
Required: Compute the following:
1.Implied goodwill associated with Johnsen Corporation based on Beck's purchase price on September 1,2013.
2.Beck's income from Johnsen for 2013.
3.Preacquisition income for Beck Corporation and Subsidiary for 2013.
4.Noncontrolling interest share for 2013.
5.What is the balance in Beck's Investment in Johnsen account at December 31,2013?

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The Answer of On September 1,2013,Beck Corporation acquired an 80% interest in Johnsen Corporation for $700,000.Johnsen's stockholders' equity at January 1,2013 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings.The book values of its assets and liabilities were equal to their respective fair values on this date.All excess purchase cost was attributed to goodwill.
During 2013,Johnsen uniformly earned $78,000 and paid dividends of $9,000 on each of four dates: February 1,June 1,August 1,and December 1.
Required: Compute the following:
1.Implied goodwill associated with Johnsen Corporation based on Beck's purchase price on September 1,2013.
2.Beck's income from Johnsen for 2013.
3.Preacquisition income for Beck Corporation and Subsidiary for 2013.
4.Noncontrolling interest share for 2013.
5.What is the balance in Beck's Investment in Johnsen account at December 31,2013?

On September 1,2013,Beck Corporation Acquired an 80% Interest in Johnsen