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On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $428,000. Seidel's acquisition-date total book value was $1,700,000. The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets-a trademark with an indefinite life and estimated fair value of $245,000 and several customer relationships estimated to be worth $180,000 with four-year remaining lives. Any remaining acquisition-date fair value in the Seidel acquisition was considered goodwill. During 2021, Seidel reported $172,000 net income and declared and paid dividends totaling $50,000. Also in 2021, Ackerman reported $350,000 net income, but neither declared nor paid dividends. 1. What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date? 2. How much of 2021 consolidated net income should be allocated to the noncontrolling interest? 3. What amount of 2021 dividends should be allocated to the noncontrolling interest? 4. What amount of noncontrolling interest should appear in the owners' equity section of Ackerman's consolidated balance sheet at December 31, 2021?

On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $428,000. Seidel's acquisition-date total book value was $1,700,000. The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets-a trademark with an indefinite life and estimated fair value of $245,000 and several customer relationships estimated to be worth $180,000 with four-year remaining lives. Any remaining acquisition-date fair value in the Seidel acquisition was considered goodwill. During 2021, Seidel reported $172,000 net income and declared and paid dividends totaling $50,000. Also in 2021, Ackerman reported $350,000 net income, but neither declared nor paid dividends. 1. What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date? 2. How much of 2021 consolidated net income should be allocated to the noncontrolling interest? 3. What amount of 2021 dividends should be allocated to the noncontrolling interest? 4. What amount of noncontrolling interest should appear in the owners' equity section of Ackerman's consolidated balance sheet at December 31, 2021?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
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Homework help starts here! ASK AN EXPERT CHAT Vx MATH SOLVER E Q&A Library On January 1, 2021, Ackerman Company acquires 80... FINANCIAL ACCOUNTING M. On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $428,000. Seidel's acquisition-date total book value was $1,700,000. 10th Edition ISBN: 9781259964947 FIND Author: Libby Publisher: MCG The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets-a trademark with an indefinite life and estimated fair value of $245,000 and several customer relationships estimated to be worth $180,000 with four-year remaining lives. Any remaining acquisition-date fair value in the Seidel acquisition was considered goodwill. Chapter 1: F... v Section: Ch... Problem 1Q During 2021, Seidel reported $172,000 net income and declared and paid dividends totaling $50,000. Also in 2021, Ackerman reported $350,000 net income, but neither declared nor paid dividends. E Not helpful? See similar books 1. What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date? Similar questions Learn more about 2. How much of 2021 consolidated net income should be allocated to the noncontrolling interest? To this solution Consolidation 3. What amount of 2021 dividends should be allocated to the noncontrolling interest? 4. What amount of noncontrolling interest should appear in the owners' equity section of Ackerman's consolidated balance sheet at December 31, 2021? Stuck on your homework? !
Transcribed Image Text:Homework help starts here! ASK AN EXPERT CHAT Vx MATH SOLVER E Q&A Library On January 1, 2021, Ackerman Company acquires 80... FINANCIAL ACCOUNTING M. On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated fair value of $428,000. Seidel's acquisition-date total book value was $1,700,000. 10th Edition ISBN: 9781259964947 FIND Author: Libby Publisher: MCG The fair value of Seidel's recorded assets and liabilities equaled their carrying amounts. However, Seidel had two unrecorded assets-a trademark with an indefinite life and estimated fair value of $245,000 and several customer relationships estimated to be worth $180,000 with four-year remaining lives. Any remaining acquisition-date fair value in the Seidel acquisition was considered goodwill. Chapter 1: F... v Section: Ch... Problem 1Q During 2021, Seidel reported $172,000 net income and declared and paid dividends totaling $50,000. Also in 2021, Ackerman reported $350,000 net income, but neither declared nor paid dividends. E Not helpful? See similar books 1. What amount should Ackerman assign to the 20 percent noncontrolling interest of Seidel at the acquisition date? Similar questions Learn more about 2. How much of 2021 consolidated net income should be allocated to the noncontrolling interest? To this solution Consolidation 3. What amount of 2021 dividends should be allocated to the noncontrolling interest? 4. What amount of noncontrolling interest should appear in the owners' equity section of Ackerman's consolidated balance sheet at December 31, 2021? Stuck on your homework? !
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Consolidation

When the financial performance and the position of a parent and a subsidiary company are shown together in a complied manner, The financial statements are said to be presented in a consolidated manner.

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