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 Stock