Born Company December 31, Consolidated December 31, 2016 2017 $ 300,000 220,000 Cash $ 199,000 ... Inventory Property, plant, and equipment (net) Goodwill .. Current liabilities . 454,000 800,000 1,230,000 325,000 (284,000) (300,000) (174,000) (250,000) (600,000) (600,000) (160,000) (200,000) Bonds payable .... Noncontrolling interest ... Controlling common stock ($10 par). Controlling paid-in capital in excess of par. Retained earnings. Totals ... (200,000) (300,000) (460,000) ... .. $ $
Born Company acquires an 80% interest in Roland Company for $660,000 cash on January 1, 2017. The NCI has a fair value of $165,000. Any excess of cost over book value is attributed to
| Assets | Liabilities and Equity |
|
Cash . . . . . . . . . . . . . . . . . . . . $ 20,000 Inventory . . . . . . . . . . . . . . . . 140,000 Property, plant, and Total assets . . . . . . . . . . . . . $710,000 |
Current liabilities . . . . . . . $110,000 Bonds payable . . . . . . . . . 100,000 Common stock ($10 par) . . 200,000 Total liabilities and equity $710,000 |
Controlling share of net income for 2017 is $150,000, net of the noncontrolling interest of $10,000. Born declares and pays dividends of $10,000, and Roland declares and pays dividends of $5,000. There are no purchases or sales of property, plant, or equipment during the year. Based on the following information, prepare a statement of
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