REFERENCE: Ref.06_14 Thomas Inc.had the Following Stockholders' Equity Accounts as of January

question 6

Essay

REFERENCE: Ref.06_14
Thomas Inc.had the following stockholders' equity accounts as of January 1,2009: Kuried Co.acquired all of the voting common stock of Thomas on January 1,2009,for $20,656,000.The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000.A database valued at $656,000 was recognized and amortized over five years.
During 2009,Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends.Kuried decided used the equity method to account for this investment.
-What was the noncontrolling interest's share of consolidated net income for this period?

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Year 2

A term that could refer to the second year of a specific time period, project, or study.

Equity Multiplier

A financial ratio that measures the amount of a company's assets that are financed by its shareholders' equity.

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to a share of the corporation's profits and assets.