Asked by Ashton Krause on Jul 04, 2024
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Thomas Inc. had the following stockholders' equity accounts as of January 1, 2021: Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2021, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2021, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.What was the noncontrolling interest's share of consolidated net income for the year 2021?
Voting Common Stock
Shares that give the shareholder voting rights in corporate decisions, typically one vote per share owned.
Preferred Stock
A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.
Net Income
A company's overall earnings, after deducting taxes and all other expenses from its total revenue.
- Recognize how noncontrolling interests are reported in the consolidated financial statements.
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Learning Objectives
- Recognize how noncontrolling interests are reported in the consolidated financial statements.
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