On january 1 2014 bigger purchased 90 of big for 1800000, Ask an Expert

Accounting

On January 1, 2014, Bigger purchased 90% of Big for $1,800,000 when Big's balance sheet showed equity of $1,500,000. At this date, Big's equipment (5 year life, no salvage) had a book value of $500,000 and a fair market value of $700,000. All other assets and liabilities had book values equal to market values. In 2014, Big paid a $20,000 dividend and reported income of $90,000.

REQUIRED:

A) MAKE THE JOURNAL ENTRIES BIGGER WILL MAKE IN 2014 REGARDING ITS INVESTMENT IN BIG...DON'T FORGET THE ENTRY FOR THE PURCHASE OF BIG AND LET ME KNOW WHAT METHOD (FULL EQUITY, PARTIAL EQUITY OR INITIAL VALUE) YOU ARE USING.

B) MAKE THE WORKSHEET ENTRIES

C) WHAT IS THE VALUE OF NCI ON December 31, 2014 CONSOLIDATED BALANCE SHEET?

D) WHAT IS THE BOOK VALUE OF THE EQUIPMENT ON THE December 31, 2014 CONSOLIDATED BALANCE SHEET.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91586126

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