Top Corporation Acquired 80 Percent of Bottom Corporation's Common Stock

question 3

Essay

Top Corporation acquired 80 percent of Bottom Corporation's common stock on January 1,20X8,for $520,000.At that date,Bottom reported common stock outstanding of $250,000 and retained earnings of $375,000.Assume the fair value of the noncontrolling interest on January 1,20X8 was $130,000.The book values and fair values of Bottom's assets and liabilities were equal on the acquisition date,except for other intangible assets,which had a fair value $25,000 greater than book value and a 5-year remaining life.Top and Bottom reported the following data for 20X8 and 20X9:

a.Compute consolidated comprehensive income for 20X8 and 20X9.
b.Compute comprehensive income attributable to the controlling interest for 20X8 and 20X9.
Problem 58 (continued):

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Definitions:

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including their contexts and associated emotions.

Encephalitis

An inflammation of the brain, often caused by viral infection, leading to fever, headache, confusion, and in severe cases, seizures or coma.

Hippocampus

A region of the brain that is associated with memory formatting, navigation, and the emotional response.

Procedural Memory

The aspect of long-term memory that is responsible for knowing how to perform tasks and actions, such as riding a bike or typing.