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gottobecpa
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Posted: 07 May 2010 at 17:13 | IP Logged  

yes, the above question is in becker passmaster and the answer is 270,000, i just double checked it. Also read what you just mentioned it says.

consolidated equity should include any noncontrolling interest.

It says what i mentioned above consolidated equity includes non-controlling interest, I think u r trying to exclude it..........

I hope i didn't offend u when i said, you r overstudying, it was just a joke



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gottobecpa
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Posted: 07 May 2010 at 17:49 | IP Logged  

venchlu,

r u using outdated becker study material, because answer solution, that i have for this question doesn't even have 303,000 as one of the solution. It doesn't make sense. That is a rediculous number, one could never get that number as an answer and becker clearly says that "consolidated equity will be same as parent company's stockholder's equity"

I hope you r not trying to confuse the posters who r trying to help u.

All the best with your preparation



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venchlu
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Posted: 07 May 2010 at 19:58 | IP Logged  

or...i have checked the becker website for the update..it is the question
the becker has changed the answer....i know the original answer is A in
the software but becker updated to C- 303,000...I have 09 version of
becker.
Well, i never get offended by overstudy stuff..i take as a joke as well...i
always think i overthink certain topics...and which is really true. The link
of the update is at my workplace's PC....i will have the link for it whenever
I could. The following is I copy and paste the solution from the update...
Explanation
Choice "c" is correct, $303,000 total consolidated stockholders' equity.
Dallas' consolidated stockholders' equity will be the same as the parent
company stockholders' equity plus the noncontrolling interest on
December 31, 1991:
Common stock $50,000
Additional paid-in capital 80,250
Noncontrolling interest 33,000
Retained earnings 139,750
                          Total- $303,000
The December 31, 1991 noncontrolling interest of $33,000 is calculated
as follows:
Noncontrolling interest, 1/1 $30,0001
+ NCI share of net income 4,0002
- NCI share of dividends    (1,000) = $5,000 x 20%
Noncontrolling interest, 12/31 $33,000
1
- The noncontrolling interest on 1/1 is calculated as follows:
$120,000 acquisition cost = FV of Style x 20%
FV of Style = $150,000
Noncontrolling interest = $150,000 x 20% = $30,000
2
- The noncontrolling shareholders' share of Style's net income is
calculated as follows:
Style RE, 1/1 $36,000
+ Net income 20,000 (plug)
- Dividends (5,000)
Style RE, 12/31 $51,000
Noncontrolling share of Style's net income = $20,000 x 20% = $4,000
P.S. I do appreciate your time and effort for trying to help me out. Thanks



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gottobecpa
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Posted: 08 May 2010 at 07:33 | IP Logged  

Sorry Venchlu,

It was me who was using an outdated material, since I did not update my software and assumed the answer was right since i am using 2010 becker. The answer would change because its asking for the consolidated equity at the end of the year. If it had asked at the beginning of the year then the answer 270,000 would have been the right answer and that is what i was thinking when i was looking at that answer.



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Anhnio
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Posted: 14 Apr 2011 at 00:31 | IP Logged  

Venchlu, I am using Becker 2011 edition and the solution
says the answer to the Dallas question is C 303,000 but
people are saying that 270,000 is correct.
Which one is the real answer?

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