Poole Made the Following Purchases of Smarte Company Common Stock

question 4

Essay

Poole made the following purchases of Smarte Company common stock:
On July 1, 2014, Poole sold 14,000 shares of Smarte Company common stock on the open market for $22 per share.The shares sold were purchased on January 1, 2013.Smarte notified Poole that its net income for the first six months was $70,000.Any difference between cost and book value relates to subsidiary land.Poole uses the cost method to account for its investment in Smarte Company.
Required:
A.Prepare the journal entry made by Poole to record the sale of the 14,000 shares on July 1, 2014.
B.Prepare the workpaper eliminating entries needed for a consolidated statements workpaper on December 31, 2014.
C.Compute the amount of noncontrolling interest that would be reported on the consolidated balance sheet on December 31, 2014.

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Definitions:

Ethology

The scientific study of animal behavior, often with a focus on behaviors that are instinctive or genetically programmed.

Natural Habitat

The original environment in which a plant, animal, or organism lives and grows best, without human intervention.

Instinct Concept

The inherent inclination of a living organism towards a particular complex behavior.

Motivated Behavior

Actions that are driven by internal needs or desires, often aimed at achieving a specific goal or fulfilling a need.