Pylox acquired 80% of the outstanding common stock of Sylox on 1/1/06. Information pertaining to Sylox as of that date follows:
Required:
(1) Determine the amount that would be assigned to the noncontrolling interest (NCI) column in the parent's analysis of the investment account as of 1/1/06.
(2) Determine the amount that would be reported for the NCI in a consolidated balance sheet at 1/1/06.
(3) Assuming Sylox reported net income of $80,000 for 2006 and declared dividends of $60,000 on its 5% preferred stock, determine the amount of earnings that Pylox would record under the equity method.

Question

Pylox acquired 80% of the outstanding common stock of Sylox on 1/1/06. Information pertaining to Sylox as of that date follows:
  Required:
(1) Determine the amount that would be assigned to the noncontrolling interest (NCI) column in the parent's analysis of the investment account as of 1/1/06.
(2) Determine the amount that would be reported for the NCI in a consolidated balance sheet at 1/1/06.
(3) Assuming Sylox reported net income of $80,000 for 2006 and declared dividends of $60,000 on its 5% preferred stock, determine the amount of earnings that Pylox would record under the equity method.

Quizplus · Accepted Answer

The Answer of Pylox acquired 80% of the outstanding common stock of Sylox on 1/1/06. Information pertaining to Sylox as of that date follows:
  Required:
(1) Determine the amount that would be assigned to the noncontrolling interest (NCI) column in the parent's analysis of the investment account as of 1/1/06.
(2) Determine the amount that would be reported for the NCI in a consolidated balance sheet at 1/1/06.
(3) Assuming Sylox reported net income of $80,000 for 2006 and declared dividends of $60,000 on its 5% preferred stock, determine the amount of earnings that Pylox would record under the equity method.

Pylox Acquired 80% of the Outstanding Common Stock of Sylox