Thomas Inc $\$ 90$ Par Value, Nonvoting and Nonparticipating; Kuried Co Acquired All of the Voting Common Stock of Thomas

question 91

Essay

Thomas Inc. had the following stockholders' equity accounts as of January 1, 2011:
Answer: Preferred stock — $\$ 90$ par value, nonvoting and nonparticipating;
$\begin{array}{lr}9 \% \text { cumulative dividend } & \$ 2,700,000 \\\text { Common stock - } \$ 25 \text { par value } & 5,600,000 \\\text { Retained earnings } & 14,000,000\end{array}$ Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2011, 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 2011, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.
-What was the noncontrolling interest's share of consolidated net income for the year 2011?

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Definitions:

Retinal Disparity

The slight difference in images processed by each eye, which contributes to depth perception and the ability to see the world in three dimensions.

Shape Constancy

The perceptual phenomenon where the perceived shape of an object remains constant despite changes in the viewing angle or distance.

Retinal Image

The image projected onto the retina, which is the light-sensitive layer at the back of the eye.

Increasingly Larger

Describes a process or condition that grows or expands in size, volume, or quantity over time.