Quoton Corporation purchased 80 percent of Tempro Company's common stock on December 31, 20X5, at underlying book value. Tempro provided the following trial balance data at December 31, 20X5:
The data is attached.
(a)How much did Quoton pay to purchase its shares of Tempro?
(b)If consolidated financial statements are prepared at December 31, 20X5, what amount will be assigned to the non-controlling interest in the consolidated balance sheet?
(c)If Quoton reported income of $143,000 from its separate operations for 20X5, what amount of consolidated net income will be reported for 20X5?
(d)If Quoton had purchased its ownership of Tempro on January 1, 20X5, at underlying book value and Quoton reported income of $143,000 from its separate operations for 20X5, what amount of consolidated net income would be reported for 20X5?
This solution shows step-by-step calculations to determine price of Tempro purchased shares, reported net income and also a table format of consolidated financial statements are provided.