Question 3 - part c - NCI

[Helene Lapierre]

Hi everyone - first of thanks for your help... missing pages

This is what I am getting for NIC for Year 3....

Let me know what you have --- I think that mine is wrong... too hot to think straight... seriously next year getting some air conditioning in the house.

 

Calculation of Non Controlling Interest to Year 3
Year 1	Common Shares			350,000
thanks Helene ( Lenny )
	Retained Earnings			300,000
	Book Value			650,000
	Non Controlling Interest @ 30%			195,000
Year 2	Common Shares			350,000
	Retained Earnings			300,000
	Add Net Income			50,000
	Book Value			700,000
Year 2	Unamortized PPD			243,000
				943,000
Jan 1 Yr 3	Non Controlling Interest @ 30%			282,900
Year 3	Common Shares			350,000
	Retained Earnings			300,000
	Add Net Income			70,000
	Less Dividends			-35,000
	Book Value			685,000
	Unamortized PPD			216,000
				901,000
Year 3	Non Controlling Interest @ 30%			270,300

[jason huang]

my calculation for you reference   The calculation of amt shown for NCI at Dec 31, Year 3, is:
Common stock - S			350,000
Retained earnings - S			385,000		300000+50000+70000-35000
			735,000
			30%
			220,500
Plus: unamortized purchase discrepancy			64,800
			285,300
Changes in NCI
Balance, Jan 1, Year 3			282,900
Allocated income of entity			12,900		(70000-27000)*0.3
			295,800
Dividend to non-controlling shareholders			(10,500)		35000*0.3
Balance, Dec 31, Year 3			285,300

--
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Jason Huang
457 Dalmuir Mews, Mississauga, ON   L4Z 3W2
(905) 507-1888   yanshe...@gmail.com

[lenny.l...@gmail.com]

Thank you jason - I will look at that in the morning

Sent from my BlackBerry® wireless device

---

From: jason huang <yanshe...@gmail.com>

Sender: fa4-sum...@googlegroups.com

Date: Tue, 12 Jul 2011 21:55:35 -0400

To: <fa4-sum...@googlegroups.com>

ReplyTo: fa4-sum...@googlegroups.com

Subject: Re: Question 3 - part c - NCI

[KevinM]

I am getting 285,300 for NCI

You are missing 50,000 x .30 = 15,000


Tax question
Are you getting 216,520 for net income for question 2 part 4
or is it 224,460

[Leah K.]

I have 224,460

[KevinM]

thanks - I think I am ready to send

> > > PPD 216,000   901,000 Year 3 Non Controlling Interest @ 30% 270,300- Hide quoted text -
>
> - Show quoted text -

[Helene Lapierre]

thank you Jason.... I get it now... thank you

2011/7/12 jason huang <yanshe...@gmail.com>