113) ATCO Ltd. is a diversified company. What activities are included in their portfolio?
114) Barking Power Corporation acquired 80% of the voting common shares of Brighton Beach Corporation on December 31, 2010. During the year ended December 31, 2011, Barking Power Corporation and Brighton Beach Corporation reported net income of $110,000 and $75,000 from their own operations, respectively.
a.How much income will be reported on the consolidated income statement for the year ended December 31, 2011?
b.Discuss the way in which non-controlling interests in the subsidiary might be presented on consolidated financial statements. What exactly does non-controlling interest represent?
115) An investor owns 80% of the stock in another company. How should the investor account for the investment?
116) What are consolidated financial statements? What are some of the benefits and limitations of them for ATCO Ltd.?
117) Calculate the amount of consolidated net income reported by the parent company in 2011 given the following information:
Investment% OwnershipNet Income — Year
Act Five60$500,0002010
Act One80830,0002011
Act Six70360,0002011
Act Nine62400,0002011
Act Ten10225,0002011
In 2011 the parent company's net income was $940,000.