Nama: Alya Sufi Ikrima

NIM: 041911333248
Kelas: A1-SP
Tugas Pertemuan 13 - Subsidiary Preferred Stock, Consolidated EPS, & Consolidated
Income Taxation

E 10-2 Preferred stocks not held by parent

Required:
1. Calculate the purchase price of Berlian TBK by Permata TBK on January 1, 2013.
Common stockholders' equity $380,000
Goodwill $75,000
Implied fair value $455,000
Purchase price (80% * implied fair value = 455,000) $364,000
2. Calculate the total amount of stockholders’ equity at the time of the purchase.
Common stockholders' equity $380,000
Preferred stockholders' equity (1,000 share at 102 call price) $102,000
Total stockholders' equity $482,000
3. Calculate the total amount of noncontrolling interest share.
Income from subsidiary $36,000
Common stock portion of income (Income from subsidiary /80%) $45,000
Net income $60,000
Preferred stock portion of income $15,000

NCI interest share – common (20% * common stock portion of income) $9,000
NCI interest share - preferred (100%* preferred stock portion of income) $15,000
Total noncontrolling interest share $24,000
E 10-5 [Preferred stock] Parent owns both common and preferred stock of subsidiary
Required:
Calculate the following:
1. The value of preferred stock from Roditeli’s investment in Dhocerneye
→ Arrearage: 10% x 100,000 = 10,000
→ BV of Preferred Stock: (100 +10) x (1,000,000, / 100) = 1,100,000
→ Value of Preferred Stock: 1,100,000 x 60% = 660,000
2. Goodwill from Roditeli’s acquisition
→ The implied total fair value is = $3,000,000 / 90% = $3,333,333
→ Common stockholder’s equity (BV):
= Stockholders’ equity of Dhocerneye’s – Preferred stockholders’ equity
= $4,100,000 - $1,100,000 = $3,000,000
→ Goodwill = FV – BV = $3,333,333 - $3,000,000 = $333,000
3. Roditeli’s income from Dhoceryene for 2017, both common and preferred
→ Dhoceryene Net Income: 500,000
→ Preferred Stock Portion of Income: 1,000,000 x 10% = 100,000
→ Common Stock Portion of Income: 500,000 - 100,000 = 400,000
→ Roditeli's Income from Preferred Stock: 100,000 x 60% = 60,000
→ Roditeli's Income from Common Stock: 400,000 x 90% = 360,000
→ Income from Dhoceryene: 60,000 + 360,000 = 420,000
4. Total noncontrolling interest in Dhoceryene that will appear on Roditeli and Subsidiary’s
balance sheet at December 31, 2017
→ NCL, Beginning: (1,100,000 x 40% + 3,100,000 x 10%) = 420,000
→ NCI Share: (100,000 x 40% + 400,000 x 10%) = 80,000
→ Dividends - Preferred: 100,000
→ Dividends - Common: 150,000 – 100,000 = 50,000
→ NCI Dividend - Preferred: 100,000 x 40% = 40,000
→ NCI Dividend - Common: 50,000 x 10% = 5,000
→ NCI, Ending: 420,000 + 80,000 – 40,000 – 5,000 = 455,000
E 10-6 [Preferred stock] Journal entries, fair value/book value differentials
Required:
1. Prepare journal entries to record Penang’s 50 percent investment in Minang’s preferred
stock.
Investment in Minang’s - preferred $700,000
Cash $700,000
To adjust other paid-in capital for the constructive retirement of 50% of Minang's preferred
shares.
Additional paid-in capital $225,000
Investment in Minang - preferred $225.000
2. Determine the fair value/book value differentials from Penang’s investment in Minang.
Cost of common stock $5,600,000
Implied total fair value ($5,600,000 / 80%) $4,480,000
Book value of common stocks $6,450,000
($7,600,000 total equity - $1,150,000 preferred equity)
Excess fair value over book value of common ($1,970,000)