Keefe inc a calendar-year corporation acquires 70 of george


Question - Keefe, Inc., a calendar-year corporation, acquires 70% of George Company on September 1, 2009 and an additional 10% on April 1, 2010. Total annual amortization of $6,000 relates to the first acquisition. George reports the following figures for 2010:

Revenues $500,000

Expenses $400,000

Retained Earnings 1/1/10 $300,000

Dividends Paid $50,000

Common Stock 200,000

Without regard for this investment, Keefe earns $300,000 in net income during 2010.

All net income is earned evenly throughout the year.

What is the controlling interest in consolidated net income for 2010?

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Accounting Basics: Keefe inc a calendar-year corporation acquires 70 of george
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