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Business, 18.12.2019 02:31 cristinanina

On january 1, year 11 pathan corp. purchased 80% of samoa corp.'s $10 par common stock for $975,000. pathan had no prior equity interest in samoa. the remaining 20% of this stock is held by nci co., an unrelated party. on the acquisition date for this business combination, the carrying amount of samoa's net assets was $1 million. the fair values of the assets acquired and liabilities assumed were the same as their carrying amounts on samoa's balance sheet except for equipment that has book value in excess of fair value of $100,000 with a remaining economic life of 10 years. the fair value of the noncontrolling interest (nci) is 20% of the implied fair value of the acquiree's net assets at the acquisition date. (no exceptions to the recognition or measurement principles apply.) for the year ended december 31, year 11 samoa's net loss from its independent operations was $18,750, and samoa paid cash dividends totaling $125,000.

a. in the december 31 consolidated balance sheet, the nci is reported at? (217,000 213,000 243,750 256,750 or 242,000)

b. how much was the equity income recognized by pathan corp during year 11?

c. what is the amount of change in the balance of the equity investment account during year 11?

d. how much was the amount of noncontrolling interests (nci) on jan. 1, year 11?

e. considering the operating results of samoa during year 11, is the amount of dividend paid in year 11 reasonable/feasable?

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On january 1, year 11 pathan corp. purchased 80% of samoa corp.'s $10 par common stock for $975,000....
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