10/1 Chapter 5

Question 1

equity method

Answer 1

we are picking up 100% the non controlling interest we allocate to NCI

Question 2

partial valuation

Answer 2

only in cost method

Question 3

NCI in net assets

Answer 3

gets their percentage of the fair value and our percentage is booked to our investment

Question 4

Group 1 Excercise

Answer 4

bought 80% for 354000 when the fv was 442500

C/S and RE 247000 so we have an excess of 195500(differential

Question 5

common stock plus retained earnings

Answer 5

book value

Question 6

beginning retained earnings

Answer 6

we need to eliminate this. its always the beginning retained earnings

Question 7

basic elimination

Answer 7

is all book value
CS
RE
    Investment in company
    NCI in net assets

Question 8

excess/fair value

Answer 8

land 39000
build
Cov NTC
Goodwill
     Inventory
     Inv in company
     NCI in NA of Salt

Question 9

NCI in Net Assets and NCI in net income

Answer 9

new accounts