Q.18. Smith, Inc., has the following stockholders' equity accounts as of January 1, 2021:Preferred stock-$100 par, nonvoting andnonparticipating, 8% cumulative dividendCommon stock-$10 par valueRetained earningsHaried Company purchases all of Smith's common stock on January 1, 2021, for $14,160,000. The preferred stock remains in the handsof outside parties. Any excess acquisition-date fair value will be assigned to franchise contracts with a 40-year remaining life.During 2021, Smith reports earning $490,000 in net income and declares $400,000 in cash dividends. Haried applies the equitymethod to this investment.$ 2,040,0004,040,00010,040,000a. What is the noncontrolling interest's share of consolidated net income for this period?b. What is the balance in the Investment in Smith account as of December 31, 2021?c. What consolidation entries are needed for 2021?Complete this question by entering your answers in the tabs below.Req A and BReq Ca. What is the noncontrolling interest's share of consolidated net income for this period?b. What is the balance in the Investment in Smith account as of December 31, 2021?Amounta. Net income -noncontrolling interest's shareb. Investment in Smith account

Some organizations have two or more subsidiaries, and they all together run their business. The…

Answered: Smith, Inc., has the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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Waseca Company had 5 convertible securities outstanding during all of 2019. It paid the appropriate interest (and amortized any related premium or discount using the straight line method) and dividends on each security during 2019. Each of the convertible securities is described in the following table: Additional data: Net income for 2019 totaled 119,460. The weighted average number of common shares outstanding during 2019 was 40,000 shares. No share options or warrants arc outstanding. The effective corporate income tax rate is 30%. Required: 1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. 2. Prepare a ranking of the order in which each of the convertible securities should be included in diluted earnings per share. 3. Compute basic earnings per share. 4. Compute diluted earnings per share. 5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2019 income statement.
On January 1, 2021, TAPANG Company acquired 5,000 shares of FVOCI securities of AKO Company at P100,000 plus brokerage expense of P10,000. On February 14, 2021, AKO Company ordinary share was split on a 4-for-2 basis. The fair value at December 21, 2021 amounted to P20 per share. Compute for the total number of shares at the end of the year. Compute for the unrealized gain or (loss) to be presented in the other comprehensive income for the current year. Prepare all the necessary journal entries.
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