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Question: Kelly Company acquired 75 percent of Helton


Kelly Company acquired 75 percent of Helton Company’s outstanding voting shares on January 1, 2019, in exchange for $285,000 in cash. The subsidiary’s stockholders’ equity accounts totaled $326,000, and the noncontrolling interest had a fair value of $95,000 on that day. However, a building (with a 12-year remaining life) in Helton’s accounting records was undervalued by $18,000. Kelly assigned the remaining excess fair over book value to Helton’s patented technology (three- year remaining life).
Helton sold inventory to Kelly as follows:



Kelly Company acquired 75 percent of Helton Company’s outstanding voting shares on -1

Following are selected separate account balances for these two companies for the year ended December 31, 2021. Credit balances are indicated by parentheses.



Kelly Company acquired 75 percent of Helton Company’s outstanding voting shares on -2

Prepare a consolidated income statement for Kelly Company and its subsidiary Helton for the year ended December 31, 2021. Include a proper title and line items allocating consolidated net income to the controlling and noncontrolling interests. Omit per share amounts.

2.99

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