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    sports3682's Avatar
    sports3682 Posts: 8, Reputation: 1
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    #1

    Aug 12, 2009, 06:06 PM
    Consolidated Net Income
    On January 1, 2009, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. Techron Co. reported a Common Stock account balance of $140,000 and Retained Earnings of $280,000 at that date. The fair value of Techron Co. was appraised at $530,000. The total annual amortization was $11,000 as a result of this transaction. The subsidiary earned $98,000 in 2009 and $126,000 in 2010 with dividend payments of $42,000 each year. Without regard for this investment, Jannison had income of $308,000 in 2009 and $364,000 in 2010. Use the acquisition method to account for this purchase.

    Prepare a proper presentation of consolidated net income for 2009.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    Aug 12, 2009, 09:55 PM

    Please post your own answer for correction and guidance.
    chancesmith318's Avatar
    chancesmith318 Posts: 1, Reputation: 1
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    #3

    Oct 6, 2014, 06:14 PM
    Jannison's income - 2015 364000
    Techron's income - 2015 126000
    Amortization Expense (given) (11000)
    Consolidated Net Income 479000
    To non-controlling interest (11500)
    To controlling interest 467500
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