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Advanced Accounting, 13e (Beams et al.)
Chapter 9 Indirect and Mutual Holdings
9.1 Multiple Choice Questions
1) Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc. Which of the
following is correct?
A) Bajo should not be consolidated because noncontrolling interests hold 52%.
B) Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure.
C) Pallet has 8% indirect ownership of Bajo.
D) Pallet has 80% indirect ownership of Bajo.
Answer: B
Objective: LO9.1 Prepare consolidated statements when a parent company controls a subsidiary company through
indirect holdings.
Difficulty: Moderate
AACSB: Analytical thinking
2) Page Corporation acquired a 60% interest in Ace Corporation at a price $40,000 in excess of book value
and fair value on January 1, 2013. On the same date, Ace acquired a 70% interest in Bader Corporation at
a price $30,000 in excess of book value and fair value. The excess purchase cost paid by Page and Ace was
attributed to goodwill. Separate net incomes (excluding investment income) for the three affiliates for
2013 are as follows: Page, $500,000, Ace, $300,000, and Bader, $400,000.
Page's controlling interest share of consolidated net income for 2013 is

A) $808,000.
B) $848,000.
C) $920,000.
D) $960,000.
Answer: B
indirect holdings.
AACSB: Application of knowledge
1
Copyright © 2018 Pearson Education, Inc.
Use the following information to answer the question(s) below.
Paint Corporation owns 82% of Achille Corporation and Achille Corporation owns 80% of Badrack
Corporation. For the current year, the separate net incomes (excluding investment income) of Paint,
Achille, and Badrack are $120,000, $100,000, and $50,000, respectively. The cost of each investment was
equal to the book value of the investment, which was also equal to the fair value.
3) Noncontrolling interest share for Badrack is

A) $9,000.
B) $10,000.
C) $20,000.
D) $40,000.
Answer: B
Explanation: B) (0.20 × $50,000 = $10,000)
indirect holdings.
4) Noncontrolling interest share for Achille is

A) $18,000.
B) $25,200.
C) $36,200.
D) $72,000.
Answer: B
Explanation: B) [$100,000 + (0.80) × ($50,000)] × 18% = $25,200
indirect holdings.
5) Controlling interest share of consolidated net income for Paint Corporation and Subsidiaries is:
A) $234,800.
B) $244,800.
C) $260,000.
D) $270,000.
Answer: A
Explanation: A) Paint Achille Badrack
Separate incomes $120,000 $100,000 $50,000
Allocate 80% of Badrack to Achille _______ 40,000 (40,000)
Subtotal 120,000 140,000 10,000
Allocate 82% of Achille to Paint 114,800 (114,800)
Controlling interest share of cons. net income $234,800 _______ _______
Noncontrolling interest share $25,200 $10,000
indirect holdings.
2
6) Pabari Corporation owns an 80% interest in Alders Corporation and Alders owns a 60% interest in
Babao Corporation. Both interests were acquired at a cost equal to book value equal to fair value. During
2013, Alders sells land to Babao at a profit of $12,000. Babao still holds the land at December 31, 2013. Net
income (loss) of the three companies (excluding investment income) for 2013 are:
Pabari Corporation $180,000

Alders Corporation 72,000
Babao Corporation (30,000)
Controlling interest share of consolidated net income and noncontrolling interest share, respectively, for
2013 are
A) $211,200 and ($1,200).
B) $211,200 and ($3,600).
C) $213,600 and ($1,200).
D) $213,600 and ($3,600).
Answer: D
Explanation: D) Noncont. interest share: $8,400 Profit + ($12,000) Loss
Pabari Alders Babao

Separate incomes $180,000 $72,000 $(30,000)
Less: Unrealized profit on land _______ (12,000) _______
Subtotal $180,000 $60,000 (30,000)
Allocate Babao's net loss to
Alders ($30,000) × 60% _______ (18,000) 18,000
Subtotal 180,000 42,000 (12,000)
Allocate 80% of Alders
income to Pabari 33,600 (33,600)
Controlling interest share of consolidated
net income $213,600 _______ _______
Noncontrolling interest share $8,400 $(12,000)
indirect holdings.
3
7) Pablo Corporation acquired 60% of Abagia Corporation on January 1, 2013, at a cost of $20,000 in
excess of book value. Also, on July 1, 2013, Pablo acquired 60% of Babin Corporation at book value. On
January 1, 2014, Abagia acquired a 20% interest in Babin at a cost of $10,000 in excess of book value. The
excess purchase costs paid by Pablo and Abagia were attributed to goodwill.
On July 1, 2014, Pablo sold land with a book value of $20,000 to Abagia for $40,000. The $20,000
unrealized gain is included in Pablo's separate income. Separate net incomes for the affiliated companies
(excluding investment income) for 2014 are:
Pablo $250,000
Abagia 70,000
Babin 100,000
Controlling interest share of consolidated net income for 2014 is

A) $304,000.
B) $324,000.
C) $344,000.
D) $364,000.
Answer: C
Explanation: C) Pablo Abagia Babin

Less: Unrealized profit on land (20,000) ________ ________
Separate realized incomes $230,000 $70,000 $100,000
Allocate Babin's income:
60% to Pablo 60,000 (60,000)
20% to Abagia ________ 20,000 (20,000)
Subtotal 290,000 90,000 20,000
Allocate Abagia's net income
60% to Pablo 54,000 (54,000)
Controlling interest share
of consolidated net income $344,000 ________ ________
indirect holdings.
4
8) Paglia Corporation owns 80% of Aburn Corporation and has separate net income of $200,000 for 2013.
Aburn Corporation has separate net income of $100,000 and owns 70% of the outstanding stock of Badley
Corporation. Badley Corporation has separate net income of $80,000. (Separate net incomes exclude
investment income.) The cost of each investment was equal to book value and fair value. The controlling
interest share of consolidated net income for 2013 is
A) $324,800.
B) $328,800.
C) $344,800.
D) $348,800.
Answer: A
Explanation: A) Paglia Aburn Badley
Allocate Badley's income:
70% to Aburn _______ 56,000 (56,000)
Subtotal $200,000 $156,000 $24,000
Allocate Aburn's income:
80% to Paglia 124,800 (124,800) _______
of consolidated net income $324,800
indirect holdings.
5
Pace Corporation owns 70% of Abaza Corporation and 60% of Babon Corporation. Abaza Corporation
owns 20% of Babon Corporation. Pace's investment in Abaza was consummated in one transaction at a
purchase price $20,000 in excess of the book value. Pace's purchase of Babon was made in one transaction
at a price $30,000 above book value. Abaza's investment in Babon was completed in one transaction at a
purchase price $10,000 in excess of the book value. The purchase price differential for all three
investments was attributable to goodwill. (There were no fair value/book value differences in assets and
liabilities for each investment.) Pace's separate net income for the current year is $100,000. Abaza's
separate net income is $190,000, which includes a $10,000 unrealized loss on the sale of land to Pace.
Babon's separate net income is $150,000. Separate net incomes exclude investment income.
9) The controlling interest share of consolidated net income for the current year is
A) $341,000.
B) $348,400.
C) $351,000.
D) $355,000.
Answer: C
Explanation: C) Pace Abaza Babon

Plus: Unrealized loss on
land sale to Pace ________ 10,000 ________
Separate realized incomes $100,000 $200,000 $150,000
Allocate Babon's income:
60% to Pace 90,000 (90,000)
20% to Abaza ________ 30,000 (30,000)
Subtotal 190,000 230,000 30,000
Allocate Abaza's net income
to Pace $230,000 × 70% 161,000 (161,000)
indirect holdings.
10) The amount of noncontrolling interest share for the current year is
A) $69,000.
B) $85,000.
C) $95,000.
D) $99,000.
Answer: D
Explanation: D) ($69,000 + 30,000 = $99,000)
indirect holdings.
6
Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was
purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill.
Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation, which was
purchased at book value. The separate net incomes of Pahm, Abussi, and Badock (excluding investment
income) for the year are $200,000, $240,000, and $260,000, respectively. There were no fair value/book
value differences in the assets and liabilities of Pahm, Abussi and Badock.
11) Controlling interest share of consolidated net income for the current year is
A) $504,800.
B) $516,800.
C) $545,200.
D) $557,200.
Answer: B
Explanation: B) ($200,000 + (80%) × [$240,000 + (60%) × (260,000)] = $516,800)
indirect holdings.
12) The amount of income for the current year assigned to the noncontrolling shareholders of Badock
Corporation is
A) $100,000.
B) $104,000.
C) $120,000.
D) $140,000.
Answer: B
Explanation: B) (40% × $260,000 = $104,000)
indirect holdings.
7
13) The amount of income for the current year assigned to the noncontrolling shareholders of Abussi
Corporation is
A) $48,000.
B) $53,200.
C) $74,000.
D) $79,200.
Answer: D
Explanation: D) (20% × $240,000) + (20% × $156,000) = $79,200
Pahm Abussi Badock

Allocate Badock's income:
60% to Abussi ________ 156,000 (156,000)
Subtotal $200,000 $396,000 $104,000
Allocate Abussi's net income to
Pahm $396,000 × 80% 316,800 (316,800)
Objective: LO9.2 Apply consolidation procedures to the special case of mutual holdings.
14) The net income reported for Pahm Corporation for the current year is
A) $504,800.
B) $516,800.
C) $545,200.
D) $557,200.
Answer: B
Explanation: B) Pahm's net income is the same as the controlling interest share of consolidated net
income.
8
Paiva Corporation owns 80% of Ackroyd Corporation's outstanding common stock and Ackroyd owns
80% of the outstanding common stock of Bailey Corporation. Bailey Corporation owns 10% of the
outstanding common stock of Ackroyd Corporation. The cost of the investments was equal to book value
and there were not fair value/book value differences for the investments. The separate net incomes for the
three affiliated companies for the year ended December 31, 2014 (excluding investment income) are as
follows: Paiva Corporation, $100,000, Ackroyd Corporation, $50,000, and Bailey Corporation, $30,000. Use
the conventional approach.
Symbols used:
P = Income of Paiva on a consolidated basis
A = Income of Ackroyd on a consolidated basis
B = Income of Bailey on a consolidated basis
15) The equation, in a set of simultaneous equations, that computes Paiva Corporation income on a
consolidated basis is
A) P = $50,000 + 0.8B.
B) P = $30,000 + 0.2A.
C) P = $100,000 + 0.2A.
D) P = $100,000 + 0.8A.
Answer: D
indirect holdings.
16) Ackroyd's noncontrolling interest share for 2014 is

A) $7,609.
B) $8,044.
C) $15,652.
D) $23,696.
Answer: B
Explanation: B) P = $100,000 + 0.8A
A = $50,000 + 0.8B
B = $30,000 + 0.1A
A = $50,000 + 0.8 × ($30,000 + 0.1A)

A = $50,000 + $24,000 + 0.08A
0.92A = $74,000
A = $80,435 (rounded)
Noncontrolling interest share

Ackroyd: $80,435 × 10% outside interest $8,044
indirect holdings.
9
17) Bailey's noncontrolling interest share for 2014 is
A) $7,609.
B) $8,044.
C) $15,652.
D) $23,696.
Answer: A
Explanation: A) (20% × $38,044)
indirect holdings.
18) When mutually-held stock involves subsidiaries holding the stock of each other, the ________ method
is not used.
A) equity
B) cost
C) conventional
D) treasury stock
Answer: D
19) Raymond Company owns 90% of Rachel Company. Rachel Company owns 10% of Raymond
Company. The treasury stock method is used. On the books of Rachel Company, we maintain the
Investment in Raymond using the ________ method. The ending balance in Investment in Raymond is
________ stockholders' equity in the consolidated balance sheet.
A) equity; deducted from
B) cost; deducted from
C) treasury stock; deducted from
D) conventional; added to
Answer: B
10
20) On January 1, 2014, Pauline Company acquired 90% of Stephen Company at a cost of $90,000. On
January 1, 2014, Stephen Company acquired 10% of Pauline Company at a cost of $10,000.
On January 1, 2014, the following data is available:
Stephen Company Pauline Company

Common Stock $50,000 Common Stock $50,000
Retained Earnings $50,000 Retained Earnings $50,000
Assets fair value $100,000 Assets fair value $100,000
Assets book value $100,000 Assets book value $100,000
Liabilities $0 Liabilities $0
At December 31, 2014, the following data is available:
January 1, 2014 December 31, 2014

On Pauline Books:
Investment in Stephen $90,000 $105,000
On Stephen Books:
Investment in Pauline $10,000 $10,000
Assuming the treasury stock method is used, what elimination entry is needed for the Investment in
Pauline at December 31, 2014?
A)
Retained earnings 5,000
Common stock 5,000
Investment in Pauline 10,000
B)
Investment in Stephen 10,000
C)
Income from Pauline 10,000
D)
Treasury stock 10,000
Answer: D
11
9.2 Exercises
1) Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of
the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of
Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes
(excluding investment income) of these affiliated companies for 2014 are:
Paice $300,000
Accardi 160,000
Badger 120,000
Required:
Calculate controlling interest share of consolidated net income and noncontrolling interest shares for
Paice Corporation and Subsidiaries for 2014.
Answer:
Paice Corporation and Subsidiaries
Income Allocation Schedule
For the year 2014
Paice Accardi Badger

Separate earnings $300,000 $160,000 $120,000
Allocate Badger's income:
60% to Paice 72,000 (72,000)
20% to Accardi ________ 24,000 (24,000)
Subtotal $372,000 $184,000 $24,000
Allocate Accardi's income:
80% to Paice 147,200 (147,200)
indirect holdings.
12
2) Pacini Corporation owns an 80% interest in Abdoo Corporation, acquired on January 1, 2013 for
$700,000 when Abdoo's stockholders' equity consisted of $600,000 of Capital Stock and $200,000 of
Retained Earnings.
Abdoo Corporation acquired a 60% interest in Bach Corporation on July 1, 2013 for $180,000 when Bach
had Capital Stock of $200,000 and Retained Earnings of $50,000. On January 1, 2014, Abdoo acquired a
70% interest in Cabo Corporation for $270,000 when Cabo had Capital Stock of $250,000 and Retained
Earnings of $100,000.
No change in outstanding stock of any of the affiliated companies has occurred since the investments
were made. All cost-book value differentials are goodwill. There are no fair value/book value
differentials. The stockholders' equity section of the separate balance sheets of Abdoo, Bach, and Cabo at
December 31, 2014 are as follows:
Abdoo Bach Cabo

Capital Stock $600,000 $200,000 $250,000
Retained Earnings 280,000 140,000 130,000
Total stockholders' equity $880,000 $340,000 $380,000
Required:
1. Compute the amount at which goodwill should be shown in the consolidated balance sheet of Pacini
Corporation and Subsidiaries at December 31, 2014.
2. Pacini and Abdoo have applied the equity method correctly. Determine the balances of the three
investment accounts at December 31, 2014.
13
Answer:
Requirement 1
Pacini's investment in Abdoo:
Implied fair value ($700,000/0.8) $875,000
Total stockholders' equity 800,000
Goodwill $75,000
Abdoo's investment in Bach:

Goodwill $50,000
Abdoo's investment in Cabo:

Goodwill $35,714
Total Goodwill ($35,714 + $75,000 + $50,000) $160,714
Requirement 2
Pacini Abdoo's books
Equity Equity Equity
in Abdoo in Bach in Cabo
Investment cost $700,000 $180,000 $270,000
Investors' share of equity
since acquisition:
Abdoo: ($80,000 × 80%) 64,000
Bach: ($90,000 × 60%) 54,000
Cabo: ($30,000 × 70%) 21,000
Investment account balance $764,000 $234,000 $291,000
indirect holdings.
14
3) Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation. Acdol Corporation
owns 10% of Ben Corporation. All subsidiary investments were acquired at book value. There are no fair
value/book value differentials associated with each investment. Separate net incomes (excluding
investment income) of the affiliated companies for 2014 are:
Paik: $600,000 which includes $60,000 unrealized losses on inventory items sold to Ben
Acdol: $360,000
Ben: $340,000 which includes $100,000 unrealized profit on land sold to Acdol
Required:
Determine controlling interest share of consolidated net income and noncontrolling interest shares for
Paik Corporation and Subsidiaries for 2014.
Answer: Paik Acdol Ben
Plus: Unrealized loss on
inventory sales to Ben 60,000
Less: Unrealized profits
on land sold to Acdol ________ ________ (100,000)
Separate realized incomes 660,000 360,000 240,000
Allocate Ben:
60% to Paik 144,000 (144,000)
10% to Acdol ________ 24,000 (24,000)
Subtotal $804,000 $384,000 $72,000
Allocate Acdol:
80% to Paik 307,200 (307,200) ________
of consolidated net income $1,111,200
indirect holdings.
15
4) Packer Corporation owns 100% of Abel Corporation, Abel Corporation owns 95% of Bacon
Corporation and Bacon Corporation owns 80% of Cab Corporation. The separate net incomes (excluding
investment income) of Packer, Abel, Bacon, and Cab are $300,000, $100,000, $200,000, and $300,000,
respectively. All of the investments were made at times when the investee's book values were equal to
their fair values. There were no cost/book value differentials for each investment.
Required:
Determine the controlling interest share of consolidated net income and noncontrolling interest shares for
Packer Corporation and Subsidiaries for the current year.
Answer: Packer Abel Bacon Cab
Separate incomes $300,000 $100,000 $200,000 $300,000
Allocate Cab's income:
80% to Bacon ________ ________ 240,000 (240,000)
Subtotal 300,000 100,000 440,000 60,000
Allocate Bacon's income:
95% to Abel ________ 418,000 (418,000)
Subtotal 300,000 518,000 22,000 60,000
Allocate Abel's income:
100% to Packer 518,000 (518,000)
Controlling interest
share of consolidated
net income $818,000 ________ ________ ________
Noncontrolling interest
share $0 $22,000 $60,000
indirect holdings.
16
5) On January 1, 2014 Paki Inc. bought 75% interest in Adam Corporation. At the time of purchase, Adam
owned 80% of Baird Company. In all acquisitions, the book value equals the fair value, which equals the
acquisition cost. Separate earnings (loss) (excluding investment income) for the three affiliates for 2014
are as follows:
Separate
Earnings (Loss) Dividends
Paki Inc. $400,000 $150,000
Adam Corporation (50,000) 90,000
Baird Company 100,000 35,000
Required:
Compute controlling interest share of consolidated net income and noncontrolling interest shares for Paki
and affiliates for 2014.
Answer: Paki Adam Baird
Separate incomes $400,000 $(50,000) $100,000
Allocate Baird 80% ________ 80,000 (80,000)
Subtotal $400,000 $30,000 $20,000
Allocate Adam 75% 22,500 (22,500)

of consolidated net
income $422,500
Noncontrolling interest share in Baird $20,000

Noncontrolling interest share in Adam 7,500
Noncontrolling interest shares $27,500
indirect holdings.
17
6) Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation,
and Back Corporation owns 5% of Aber Corporation. The separate net incomes (excluding investment
income) of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively. Assume the investments
were acquired at a cost equal to the book value of each investment, which also equals the fair value.
Required:
1. Calculate revised net incomes for Paco, Aber, and Back by using the conventional method.
2. Determine the controlling interest share of consolidated net income and the noncontrolling interest
shares.
Answer:
Requirement 1
Paco $181,541
Aber $90,601
Back $59,530
Requirement 2
Controlling interest share of consolidated net income = $181,541
Noncontrolling interest share (in Aber) $90,601 × 5% = $4,530
Noncontrolling interest share (in Back) $59,530 × 15% = $8,929
Total consolidated net income $195,000
Check: Total separate income = $100,000 + $40,000 + $55,000 = $195,000
Equations:
P = Income of Paco on a consolidated basis
A= Income of Aber on a consolidated basis
B = Income of Back on a consolidated basis
P = $100,000 + 0.90A
A = $ 40,000 + 0.85B
B = $ 55,000 + 0.05A
A = $40,000 + (0.85) × ($55,000 + 0.05A)

A = $40,000 + $46,750 + 0.0425A
A = $90,601
B = $55,000 + (0.05) × ($90,601)

B = $59,530
P = $100,000 + (0.9) × ($90,601)

P = $100,000 + $81,541
P = $181,541
18
7) Paine Corporation owns 90% of Achan Corporation, Achan Corporation owns 85% of Badge
Corporation, and Badge Corporation owns 5% of Achan Corporation. The separate net incomes
(excluding investment income) of Paine, Achan, and Badge are $400,000, $160,000, and $220,000,
respectively. Assume the investments were acquired at a cost equal to the book value of each investment,
which also equals the fair value.
Required:
1. Calculate revised net incomes for Paine, Achan, and Badge by using the conventional method.
shares.
Answer:
Equations:
P = Income of Paine on a consolidated basis
A = Income of Achan on a consolidated basis
B = Income of Badge on a consolidated basis
P = $400,000 + 0.90A
A = $160,000 + 0.85B
B = $220,000 + 0.05A
A = $160,000 + 0.85 × ($220,000 + 0.05A)

A = $160,000 + $187,000 + 0.0425A
0.9575A = $347,000
A = $362,402
B = $220,000 + 0.05 ($362,402) = $238,120
P = $400,000 + 0.9 ($362,402) = $726,162
Requirement 1
Paine $726,162
Achan $362,402
Badge $238,120
Requirement 2
Controlling interest share in consolidated net income $726,162
Noncontrolling interest share (from Achan) ($362,402 × 5%) 18,120
Noncontrolling interest share (from Badge) ($238,120 × 15%) 35,718
Check: Total separate income = $400,000 + $160,000 + $220,000 = $780,000

19
8) Separate earnings and investment percentages for three affiliates for 2014 are as follows:
Separate Percentage Interest Percentage Interest

Earnings in Acres in Bain
Palace Company $450,000 80%
Acres Inc 200,000 70%
Bain Corporation 160,000 10%
Assume the investments were acquired at a cost equal to the book value of each investment, which also
equals the fair value. Separate earnings do not include investment income.
Required:
1. Calculate revised net incomes for Palace, Acres, and Bain by using the conventional method.
shares.
20
Answer:
Requirement 1
Equations:
P = Income of Palace on a consolidated basis
A = Income of Acres on a consolidated basis
B = Income of Bain on a consolidated basis
P = $450,000 + 0.8A
A = $200,000 + 0.7B
B = $160,000 + 0.1A
Computations:
A = $200,000 + 0.7($160,000 + 0.1A)
A = $200,000 + $112,000 + 0.07A
0.93A = $312,000
A = $335,484
P = $450,000 + 0.8 × ($335,484)
P = $450,000 + $268,387
P = $718,387
B = $160,000 + 0.1($335,484)
B = $193,548
Palace = $718,387
Acres = $335,484
Bain = $193,548
Requirement 2
Controlling interest share of consolidated net income $718,387
Noncontrolling interest share (in Acres) (10% × $335,484) 33,548
Noncontrolling interest share (in Bain) (30% × $193,548) 58,064
Check:
Total separate net income ($450,000 + $200,000 + $160,000) $810,000
indirect holdings.
21
9) Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud
Corporation, and Bacud Corporation owns 10% of Abrams Corporation. The separate net incomes
(excluding investment income) of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000,
respectively. Assume the investments were acquired at a cost equal to the book value of each investment,
which also equals the fair value.
Required:
1. Calculate revised net incomes for Padhy, Abrams and Bacud by using the conventional method.
2. Calculate the controlling interest share of consolidated net income and the noncontrolling interest
shares for Padhy Corporation and its subsidiaries. Use the conventional method for your solution.
Answer:
Requirement 1
Equations:
P = Income of Padhy on a consolidated basis
A = Income of Abrams on a consolidated basis
B = Income of Bacud on a consolidated basis
P = $300,000 + 0.8A
A = $100,000 + 0.6B
B = $ 80,000 + 0.1A
Computations:
A = $100,000 + 0.6 ($80,000 + 0.1A)
A = $100,000 + $48,000 + 0.06A
0.94A = $148,000
A = $157,447
B = $80,000 + 0.1 ($157,447) = $95,745
P = $300,000 + 0.8 ($157,447) = $425,958
Padhy $425,958
Abrams $157,447
Bacud $95,745
Requirement 2
Controlling interest share of consolidated net income $425,958
Noncontrolling interest share (for Abrams) (10% × $157,447) 15,745
Noncontrolling interest share (for Bacud) (40% × $95,745) 38,298
Check:
Total separate net income ($300,000 + $100,000 + $80,000) $480,000
22
10) On January 1, 2014, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000.
On January 1, 2014, Sally's total stockholders' equity was $300,000. The fair value and book value of
Sally's individual assets and liabilities were equal.
On January 2, 2014, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On
January 2, 2014, Wrobel's total stockholders' equity was $700,000. The fair value and book value of
Wrobel's individual assets and liabilities were equal.
For the year ending December 31, 2014, the following data is available:
Net income Dividends

Wrobel Company $50,000 $0
Sally Company $30,000 $0
The treasury stock method is used to account for the mutual stock holdings between Wrobel and Sally.
The separate net incomes do not include investment income.
Required:
1. What is Sally's income from Wrobel for 2014?
2. What is Wrobel's income from Sally for 2014?
3. What is the noncontrolling interest share associated with Sally Company for 2014?
4. Prepare the elimination entry for Sally's Investment in Wrobel Company.
Answer:
Requirement 1
No income from Wrobel because Sally uses the cost method for the Investment in Wrobel and dividends
are $0 in 2014.
Requirement 2
$30,000 × 90% = $27,000
Requirement 3
$30,000 × 10% = $3,000
Requirement 4
Investment in Wrobel Co. 70,000
23
11) On January 1, 2014, Singh Company acquired an 80 percent interest in Gonzalez Company for
$300,000. On January 1, 2014, Gonzalez's total stockholders' equity was $375,000. The fair value and book
value of Gonzalez's individual assets and liabilities were equal.
On January 2, 2014, Gonzalez Company acquired a 10 percent interest in Singh Company for $50,000. On
January 2, 2014, Singh's total stockholders' equity was $500,000. The fair value and book value of Singh's
individual assets and liabilities were equal.

Singh Company $40,000 $0
Gonzalez Company $10,000 $0
The treasury stock method is used to account for the mutual stock holdings between Singh and Gonzalez.
Required:
1. What is Gonzalez's income from Singh for 2014?
2. What is Singh's income from Gonzalez for 2014?
3. What is the noncontrolling interest share associated with Gonzalez Company for 2014?
4. Prepare the elimination entry for Gonzalez's Investment in Singh Company.
Answer:
Requirement 1
No income from Singh because Gonzalez uses the cost method for the Investment in Singh, and
dividends are $0 in 2014.
Requirement 2
$10,000 × 80% = $8,000
Requirement 3
$10,000 × 20% = $2,000
Requirement 4
Investment in Singh Co. 50,000
24
12) On January 1, 2014, Wrobel Company acquired a 90 percent interest in Sally Company for $270,000.
On January 1, 2014, Sally's total stockholders' equity was $300,000. The fair value and book value of
Sally's individual assets and liabilities were equal.
On January 2, 2014, Sally Company acquired a 10 percent interest in Wrobel Company for $70,000. On
January 2, 2014, Wrobel's total stockholders' equity was $700,000. The fair value and book value of
Wrobel's individual assets and liabilities were equal.

Wrobel Company $50,000 $0
Sally Company $30,000 $0
The treasury stock method is used to account for the mutual stock holdings between Wrobel and Sally.
A partial working paper is available for the year ending December 31, 2014.
Required:
Prepare the elimination entries for the year ending December 31, 2014.
Do not enter them onto the worksheet. Instead, list them below.
25
Answer: Debit Credit
Income from Sally 27,000

Investment in Sally 27,000
Noncontrolling interest share 3,000

Noncontrolling interest 3,000

Investment in Wrobel 70,000

Capital stock 200,000
Investment in Sally 270,000
26
13) On January 1, 2014, Singh Company acquired an 80 percent interest in Gonzalez Company for
$300,000. On January 1, 2014, Gonzalez's total stockholders' equity was $375,000. The fair value and book
value of Gonzalez's individual assets and liabilities were equal.
On January 2, 2014, Gonzalez Company acquired a 10 percent interest in Singh Company for $50,000. On
January 2, 2014, Singh's total stockholders' equity was $500,000. The fair value and book value of Singh's
individual assets and liabilities were equal.

Singh Company $40,000 $0
Gonzalez Company $10,000 $0
The treasury stock method is used to account for the mutual stock holdings between Singh and Gonzalez.
The separate net incomes do not include investment income. A partial consolidating worksheet is below.
Required:
Prepare the elimination entries for the year ending December 31, 2014.
Do not enter them onto the worksheet. Instead, list them below.
27
Answer: Debit Credit
Income from Gonzalez 8,000

Investment in Gonzalez 8,000
Noncontrolling interest share 2,000


Investment in Singh 50,000

Capital stock 300,000
Investment in Gonzalez 300,000
28
14) On January 1, 2014, Peabody Corporation acquired a 90% interest in Salisbury Company for $270,000
when Salisbury's stockholders' equity was $300,000; with Common stock $200,000 and Retained earnings
$100,000.
On January 1, 2014, Salisbury purchased a 10% interest in Peabody for $70,000 when Peabody's total
stockholders' equity was $700,000; with Common stock $500,000 and Retained earnings $200,000.
The following data was available for the year ending December 31, 2014:
Peabody Company Salisbury Company

Net income $50,000 $30,000
Dividends 0 0
Use the conventional approach to account for the mutually-held stock. Assume there were no book
value/fair value differentials for each investment. The separate net incomes do not include investment
income.
Required:
1. Prepare the journal entry for Peabody on January 1, 2014.
2. Prepare the journal entry for Salisbury on January 1, 2014.
3. Prepare the journal entry to record the constructive retirement of 10% of Peabody's outstanding stock
due to Salisbury's purchase of Peabody's stock.
4. Determine the incomes of Peabody and Salisbury on a consolidated basis with mutual income for 2014
using simultaneous equations.
5. What is controlling interest share of consolidated net income and noncontrolling interest shares for
2014?
29
Answer:
Requirement 1
Debit Credit
Investment in Salisbury Co. 270,000
Cash 270,000
Requirement 2
Investment in Peabody Co. 70,000
Cash 70,000
Requirement 3
Common stock 50,000
Investment in Salisbury Co. 70,000
Requirement 4
P = the income of Peabody on a consolidated basis
S = the income of Salisbury on a consolidated basis
P = $50,000 + 0.90S
S = $30,000 + 0.10P
P = $50,000 + 0.9 ($30,000 + 0.10P)
P = $50,000 + $27,000 + 0.09P
P = $84,615
S = $30,000 + 0.1 ($84,615) = $38,462
Requirement 5
Peabody net income on an equity basis =
Controlling interest share of consolidated net income =
90% × $84,615 = $76,154
Noncontrolling interest share = 10% × $38,462 = $3,846
Check:
Separate net income = $50,000 + $30,000= $80,000
$76,154 + $3,846 = $80,000
30
15) On January 1, 2014, Klode Corporation acquired an 80% interest in Savy Company for $400,000 when
Savy's stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000.
On January 1, 2014, Savy purchased a 10% interest in Klode for $50,000 when Klode's total stockholders'
equity was $500,000; with Common stock $400,000 and Retained earnings $100,000.
Klode Company Savy Company

Net income $70,000 $50,000
Dividends 0 0
income.
Required:
1. Prepare the journal entry for Klode on January 1, 2014.
2. Prepare the journal entry for Savy on January 1, 2014.
3. Prepare the journal entry to record the constructive retirement of 10% of Klode's outstanding stock due
to Savy's purchase of Klode's stock.
4. Determine the incomes of Klode and Savy on a consolidated basis with mutual income for 2014 using
simultaneous equations.
2014?
31
Answer:
Requirement 1
Debit Credit
Investment in Savy Co. 400,000
Cash 400,000
Requirement 2
Investment in Klode Co. 50,000
Cash 50,000
Requirement 3
Common stock 40,000
Investment in Savy Co. 50,000
Requirement 4
K = the income of Klode on a consolidated basis
S = the income of Savy on a consolidated basis
K= $70,000 + 0.80S
S= $50,000 + 0.10K
K= $70,000 + 0.8 ($50,000 + 0.10K)
K= $70,000 + $40,000 + 0.08K
K= $119,565
S= $61,957
Requirement 5
Klode net income on an equity basis =
90% × $119,565 = $107,609
Check:
Separate net income = $50,000 + $70,000 = $120,000
$107,609 + $12,391 = $120,000
32
16) On January 1, 2014, Paul Corporation acquired a 90% interest in Satorius Company for $360,000 when
Satorius' stockholders' equity was $400,000; with Common stock of $200,000 and Retained earnings of
$200,000.
On January 1, 2014, Satorius Company purchased a 10% interest in Paul Company for $90,000 when
Paul's total stockholders' equity was $900,000; with Common stock of $500,000 and Retained earnings of
$400,000.
Paul Company Satorius Company

Net income $150,000 $130,000
Dividends 0 0
income.
Required:
1. Prepare the journal entry for Paul on January 1, 2014.
2. Prepare the journal entry for Satorius on January 1, 2014.
3. Prepare the journal entry to record the constructive retirement of 10% of Paul's outstanding stock due
to Satorius' purchase of Paul's stock.
4. Determine the incomes of Paul and Satorius on a consolidated basis with mutual income for 2014 using
simultaneous equations.
2014?
6. What is consolidated net income?
33
Answer:
Requirement 1
Debit Credit
Investment in Satorius Co. 360,000
Cash 360,000
Requirement 2
Investment in Paul Co. 90,000
Cash 90,000
Requirement 3
Common stock 50,000
Investment in Satorius Co. 90,000
Requirement 4
P = the income of Paul on a consolidated basis
S = the income of Satorius on a consolidated basis
P = $150,000 + 0.90S
S = $130,000 + 0.10P
P = $150,000 + 0.9 ($130,000 + 0.10P)
P = $150,000 + $117,000 + 0.09P
0.91P = $267,000
P = $293,407
S = $130,000 + 0.1 ($293,407) = $159,341
Requirement 5
Paul's net income on an equity basis =
90% × $293,407 = $264,066
Check:
Separate net income = $150,000 + $130,000 = $280,000
$264,066 + $15,934 = $280,000
Requirement 6
Consolidated net income = $264,066 + $15,934 = $280,000
34
17) On January 1, 2014, Adam Corporation purchased a 90% interest in Rodney Corporation. On January
1, 2014, Rodney Corporation purchased an 80% interest in Ben Corporation.
In all investment acquisitions, the cost of the interest was equal to the book value of the interest and the
fair value of the interest. The following information is available for 2014:
Purchase Cost Net Income (Net Loss) for 2014

Adam $1,000,000 $200,000
Rodney $10,000 ($10,000)
Ben $15,000 $50,000
Required:
1. What is controlling interest share of consolidated net income for 2014?
2. What is noncontrolling interest shares of consolidated net income for 2014?
Answer: Adam Rodney Ben
Separate incomes (loss) $200,000 $(10,000) $50,000
Allocate Ben 80% ________ 40,000 (40,000)
Subtotal $200,000 $30,000 $10,000
Allocate Rodney 90% 27,000 (27,000)
________ ________ ________
Controlling interest
share of consolidated net
income $227,000
Noncontrolling interest share in Rodney $3,000

Noncontrolling interest share in Ben 10,000
Noncontrolling interest shares $13,000
indirect holdings.
35
9.3 True/False
1) Direct holdings result from direct investments in the voting stock of one or more investees.
Answer: TRUE
indirect holdings.
Difficulty: Easy
2) Indirect holdings are investments that enable the investor to control or significantly influence the
decisions of an investee not directly owned through an investee that is indirectly owned.
Answer: FALSE
indirect holdings.
Difficulty: Easy
3) Consolidation procedures for direct and indirect holdings are the same.
Answer: FALSE
indirect holdings.
4) Mutual holdings occur when affiliates hold ownership interests in each other.
Answer: TRUE
Difficulty: Easy
5) Parent stock that is held by the subsidiary is considered outstanding stock and should be reflected as
such on the consolidated balance sheet.
Answer: FALSE
6) The treasury stock approach to account for parent stock held by subsidiary accounts for the stock as
treasury stock for the consolidated entity.
Answer: TRUE
7) Mutually held stock is subsidiaries holding the stock of each other.

Answer: TRUE
Difficulty: Easy
36
8) The conventional approach is appropriate for recording mutually held stock by subsidiaries.
Answer: TRUE
9) The effect of mutually held parent stock is eliminated from consolidated financial statements by either
the treasury stock approach or the conventional approach.
Answer: TRUE
indirect holdings.
10) The conventional approach for eliminating parent stock treats the investment as constructively
retired.
Answer: TRUE
indirect holdings.
Difficulty: Easy
11) For consolidated statements, indirect holding affiliation and mutual holding affiliation structures are
treated the same.
Answer: FALSE
12) Consolidated statements are appropriate when one corporation directly or indirectly owns a majority
of the outstanding voting stock of another.
Answer: TRUE
indirect holdings.
Difficulty: Easy
13) Indirect holdings called connecting affiliates involves a parent and two subsidiaries.
Answer: TRUE
indirect holdings.
Difficulty: Easy
37
Another random document with
no related content on Scribd:
tener entendido lo mal que le
succedia, siendo de otra manera:
y a mí Dios sabe si me costaba
lagrimas, porque fueron tantas las
que yo delante de Çelia derramé,
suplicandole no tratasse mal a
quien tanto le queria, que bastara
esto para que don Felis me
tuuiera la maior obligaçion, que
nunca hombre tuuo a muger. A
Çelia le llegauan al alma mis
lagrimas, assi porque yo las
derramaua, como por parescelle
que si yo la quisiera lo que a su
amor deuia, no sollicitara con
tanta diligençia fauores para otro:
y assi lo dezia ella muchas ueces
con una ansia, que parescia que
el alma se le queria despedir. Yo
biuia en la mayor confusion del
mundo porque tenía entendido
que sino mostraua quererla como
a mí me ponia a riesgo que Çelia
boluiesse a los amores de don
Felis; y que boluiendo a ellos, los
mios no podrian auer buen fin: y
si tambien fingia estar perdida por
ella, sería causa que ella
desfauoresciesse al mi don Felis,
de manera que a fuerça de
disfauores perdiesse el
contentamiento, y tras él la uida.
Y por estoruar la menor cosa
destas, diera yo cien mil de las
mias, si tantas tuuiera. Deste
modo se passaron muchos dias,
que le seruia de tercera, a
grandissima costa de mi
contentamiento, al cabo de los
quales los amores de los dos
yuan de mal en peor, porque era
tanto lo que Çelia me queria, que
la gran fuerça de amor la hizo que
perdiesse algo de aquello que
deuia a sí misma. Y un dia
despues de auer lleuado y traydo
muchos recaudos, y de auerle yo
fingido algunos, por no uer triste a
quien tanto queria, estando
supplicando a la señora Çelia con
todo el acatamiento possible, que
se doliesse de tan triste uida,
como don Felis a causa suya
passaua, y que mirasse que en
fauorescelle, yua contra lo que a
si misma deuia, lo qual yo hazia
por uerle tal que no se esperaua
otra cosa sino la muerte, del gran
mal que su pensamiento le hazia
sentir. Ella con lagrimas en los
ojos, y con muchos sospiros me
respondio: Desdichada de mí, o
Valerio, que en fin acabo de
entender quan engañada biuo
contigo. No creya yo hasta agora,
que me pedias fauores para tu
señor, sino por gozar de mi uista
el tiempo que gastauas en
pedirmelos. Mas ya conozco, que
los pides de ueras, y que pues
gustas de que yo agora le trate
bien, sin duda no deues
quererme. O quán mal me pagas,
lo que yo te quiero, y lo que por ti
dexo de querer. Plega a Dios, que
el tiempo me uengue de ti, pues
el amor no ha sido parte para ello.
Que no puedo yo creer que la
fortuna me sea tan contraria, que
no te dé el pago de no auella
conoçido. E di a tu señor don
Felis, que si biua me quiere uer,
que no me uea, y tú, traydor
enemigo de mi descanso, no
parezcas más delante destos
cansados ojos: pues sus lagrimas
no han sido parte para darte a
entender lo mucho que me deues.
Y con esto se me quitó delante
con tantas lagrimas, que las mias
no fueron parte para detenella:
porque con grandissima priessa
se metio en un aposento, y
cerrando tras si la puerta, ni bastó
llamar, suplicandole con mis
amorosas palabras, que me
abriesse, y tomasse de mí la
satisfaçion que fuesse seruida, ni
dezille otras muchas cosas, en
que se mostraua la poca razon
que auia tenido de enojarse, para
que quisiesse abrirme. Mas antes
desde allá dentro me dixo (con
una furia estraña): ingrato y
desagradecido Valerio, el más
que mis ojos pensaron uer, no me
ueas, no me hables: que no hay
satisfaçion para tan grande
desamor, ni quiero otro remedio
para el mal que me heziste, sino
la muerte, la qual yo con mis
proprias manos tomaré, en
satisfaçion de la que tú mereçes.
Y yo uiendo esto, me uine a casa
del mi don Felis, con más tristeza
de la que pude dissimular: y le
dixe, que no auia podido hablar a
Çelia, por çierta uisita en que
estaua occupada. Mas otro dia de
mañana supimos, y aun se supo
en toda la çiudad, que aquella
noche le auia tomado un
desmayo con que auia dado el
alma, que no poco espanto puso
en toda la corte. Pues lo que don
Felis sintio su muerte y quanto
llegó al alma, no se puede dezir,
ni ay entendimiento humano que
alcançallo pueda: porque las
cosas que dezia, las lastimas, las
lagrimas, los ardientes sospiros
eran sinumero. Pues de mí no
digo nada, porque de una parte la
desastrada muerte de Çelia me
llegaua al alma, y de otra las
lachrimas de don Felis me
traspassauan el coraçon. Aunque
esto no fue nada, segun lo que
despues senti, porque como don
Felis supo su muerte, la misma
noche desparesció de casa, sin
que criado suyo ni otra persona
supiesse dél. Ya ueys, hermosas
Nimphas, lo que yo sentiria:
pluguiera a Dios que yo fuera la
muerta, y no me sucediera tan
gran desdicha, que cansada
deuia estar la fortuna de las de
hasta alli. Pues como no bastasse
la diligençia que en saber del mi
don Felis se puso (que no fue
pequeña), yo determiné ponerme
en este habito en que me ueys:
en el qual ha mas de dos años,
que he andado buscandole por
muchas partes, y mi fortuna me
ha estoruado hallarle, aunque no
le deuo poco, pues me ha traydo
a tiempo, que este pequeño
seruicio pudiesse hazeros. Y
creedme (hermosas Nimphas)
que lo tengo (despues de la vida
de aquel en quien puse toda mi
esperança) por el mayor contento
que en ella pudiera reçebir.
Quando las Nimphas acabaron de
oyr a la hermosa Felismena, y
entendieron que era muger tan
principal, y que el amor le auia
hecho dexar su habito natural, y
tomar el de pastora, quedaron tan
espantadas de su firmeza, como
del gran poder de aquel tirano,
que tan absolutamente se haze
seruir de tantas libertades. E no
pequeña lastima tuuieron de uer
las lagrimas y los ardientes
sospiros con que la hermosa
donzella solenizaua la historia de
sus amores. Pues Dorida, a quien
más auia llegado al alma el mal
de Felismena, y más affiçionada
le estaua que a persona a quien
toda su uida uuiesse conuersado,
tomó la mano de respondelle, y
començó a hablar desta manera:
¿Qué haremos, hermosa señora,
a los golpes de la fortuna qué
casa fuerte aurá adonde la
persona pueda estar segura de
las mudanças del tiempo? ¿Qué
arnes ay tan fuerte, y de tan fino
açero, que pueda a nadie
defender de las fuerças deste
tirano, que tan injustamente
llaman amor? ¿Y qué coraçon ay,
aunque más duro sea que
marmol, que un pensamiento
enamorado no le ablande? No es
por çierto essa hermosura, no es
esse ualor, no es essa discreçion,
para que merezca ser oluidada de
quien una uez pueda uerla: pero
estamos a tiempo[1246], que
merescer la cosa es principal
parte para no alcançalla. Y es el
crudo amor de condiçion tan
estraña, que reparte sus
contentamientos sin orden ni
conçierto alguno: y alli da
mayores cosas donde en menos
son estimadas: medecina podria
ser para tantos males, como son
los de que este tirano es causa, la
discreçion y ualor de la persona
que los padesce. Pero ¿a quién la
dexa tan libre, que le pueda
aprouechar para remedio? ¿o
quién podra tanto consigo en
semejante passion, que en
causas agenas sepa dar consejo,
quanto más tomalle en las suyas
proprias? Mas con todo eso,
hermosa señora, te suplico
pongas delante los ojos quién
eres, que si las personas de tanta
suerte y valor como tú no
bastaren a suffrir sus
aduersidades, ¿cómo las podrian
suffrir las que no lo son? Y demas
desto, de parte destas Nimphas, y
de la mia, te suplico en nuestra
compañia, te uayas, en casa de la
gran sabia Feliçia, que no es tan
lexos de aquí, que mañana a
estas horas no estemos alli[1247].
Adonde tengo por aueriguado,
que hallarás grandissimo remedio
para estas angustias como lo han
hallado muchas personas, que no
lo merescian. De mas su sciencia,
a la qual persona humana en
nuestros tiempos no se halla que
pueda ygualar su condiçion, y su
bondad no menos la
engrandesce, y haze que todas
las del mundo, desseen su
compañia. Felismena respondio:
No sé (hermosas Nimphas) quién
a tan graue mal puede dar
remedio, si no fuesse el proprio
que lo causa. Mas con todo esso
no dexare de hazer uuestro
mandado, que pues uuestra
compañia es para mi pena tan
gran aliuio, injusta cosa sería
desechar el consuelo en tiempo
que tanto lo he menester. No me
espanto yo, dixo Çinthia, sino
cómo don Felis, en el tiempo que
le seruias, no te conoció en esse
hermoso rostro, y en la gracia, y
el mirar de tan hermosos ojos.
Felismena entonces respondio:
tan apartada tenia la memoria de
lo que en mí auia uisto, y tan
puesto en lo que ueya en su
señora Çelia, que no auia lugar
para esse conoscimiento. Y
estando en esto, oyeron cantar
los pastores que en compañia de
la discreta Seluagia yuan por una
cuesta abaxo los mas antiguos
cantares que cada uno sabia, o
que su mal le inspiraua, y cada
qual buscaua el uillancico que
más hazia a su proposito, y el
primero que començo a cantar fue
Syluano, el qual cantó lo
siguiente:
Desdeñado soy de amor,

guardeos Dios de tal dolor.
Soy del amor desdeñado
de fortuna perseguido;
ni temo uerme perdido,
ni aun espero ser ganado:
un cuydado a otro cuydado
me añade siempre el amor,
En quexas me entretenia,
ued qué triste passatiempo:
ymaginaua que un tiempo,
tras otros tiempos uenia:
mas la desuentura mia
mudóle en otro peor,
Seluagia que no tenia menos

amor, o menos presumpçion de
tenelle al su Alanio, que Syluano
a la hermosa Diana, tan poco se
tenia por menos agrauiada, por la
mudança que en sus amores auia
hecho, que Syluano en auer tanto
perseuerado en su daño;
mudando el primero verso, a este
villançico pastoril, antiguo, lo
començó a cantar aplicandolo a
su proposito desta manera:
Di, ¿quién te ha hecho

pastora
sin gasajo y sin plazer,
que tú alegre solias ser?
Memoria del bien passado
en medio del mal presente,
ay del alma que lo siente,
si está mucho en tal estado:
despues que el tiempo ha
mudado
a vn pastor por me ofender,
jamás he visto el plazer.
A Sireno bastara la cançion de

Seluagia, para dar a entender su
mal, si ella y Syluano, se lo
consintieran: mas persuadiendole
que él tambien eligiesse alguno
de los cantares que más a su
proposito huuiese oydo, començo
a cantar lo siguiente:
Oluidastesme señora,
mucho mas os quiero agora.
Sin ventura yo oluidado
me veo, no sé por qué,
ved a quien distes la fe,
y de quien la aueys quitado,
El no os ama, siendo amado,
yo desamado, señora,
mucho más os quiero agora.
Paresceme que estoy
uiendo
los ojos en que me ui,
y uos por no uerme assi,
el rostro estays escondiendo,
y que yo os estoy diziendo:
alça los ojos, señora,
que muy mas os quiero agora.
Las Nimphas estuuieron muy

atentas a las cançiones de los
pastores, y con gran
contentamiento de oyllos: mas a
la hermosa pastora no le dexaron
los sospiros estar oçiosa en
quanto los pastores cantauan.
Llegado que fueron a la fuente, y
hecho su deuido acatamiento,
pusieron sobre la yerua la mesa,
y lo que del aldea auian traydo, y
se assentaron luego a comer,
aquellos a quien sus
pensamientos les dauan lugar, y
los que no, importunados de los
que más libres se sentian, lo
uuieron de hazer. E despues de
auer comido, Polidora dixo ansi:
Desamados pastores (si es licito
llamaros el nombre que a uuestro
pesar la fortuna os ha puesto) el
remedio de uuestro mal está en
manos de la discreta Feliçia, a la
qual dio naturaleza lo que a
nosotras ha negado. E pues ueys
lo que os importa yr a uisitarla,
pidoos de parte destas Nimphas,
a quien este dia tanto seruiçio
aueys hecho, que no rehuseys
nuestra compañia, pues no de
otra manera podeis reçebir el
premio de uuestro trabajo: que lo
mismo hará esta pastora, la qual
no menos que uosotros lo ha
menester. E tú, Sireno, que de un
tiempo tan dichoso, a otro tan
desdichado te ha traydo la
fortuna, no te desconsueles: que
si tu dama tuuiese tan çerca el
remedio de la mala uida que
tiene, como tú de lo que ella te
haze passar, no seria pequeño
aliuio para los desgustos y
desabrimientos que yo sé que
passan cada dia. Sireno
respondió: Hermosa Polidora,
ninguna cosa da la hora de agora
mayor descontento, que auerse
Diana uengado de mí, tan a costa
suya, porque amar ella a quien no
le tiene en lo que meresce, y
estar por fuerça en su compañia,
ueys lo que le deue costar; y
buscar yo remedio a mi mal,
hazerlo ía, si el tiempo, o la
fortuna, me lo permetiessen, mas
ueo que todos los caminos son
tomados y no sé por donde tú y
estas Nimphas pensays lleuarme
a buscarle[1248]. Pero sea como
fuere nosotros os seguiremos, y
creo que Syluano y Seluegia
harán lo mismo, si no son de tan
mal conoscimiento, que no
entiendan la merçed que a ellos y
a mí se nos haze. Y remitiendose
los pastores a lo que Sireno auia
respondido, y encomendando sus
ganados a otros, que no muy
lexos estauan de alli, hasta la
buelta, se fueron todos juntos por
donde las tres Nimphas los
guyauan.
Fin del segundo libro.

NOTAS:
[1235] M., pradecillo.
[1236] Falta el un en la edición de Milán.
[1237] M., acaballo.
[1238] Dellos añade la edición de Milán.
[1239] M., Hermana Cinthia.
[1240] M., quiso hablar, mas no habló.
[1241] M., apuntándole.
[1242] M. Deesas.
[1243] M., fui.
[1244] M., volvieron.
[1245] M., la avisan.
[1246] M., en tiempo.
[1247] M., allá.
LIBRO TERÇERO
DE LA DIANA DE
GEORGE DE
MONTEMAYOR
Con muy gran contentamiento

caminauan las hermosas
Nimphas con su compañia por
medio de un espesso bosque, y
ya que el sol se queria poner,
salieron a un muy hermoso ualle,
por medio del qual yua un
impetuoso arroyo, de una parte y
otra adornado de muy espessos
salces y alisos, entre los quales
auia otros muchos generos de
arboles más pequeños, que
enredandose a los mayores,
entretexendose las doradas flores
de los unos por entre las uerdes
ramas de los otros, dauan con su
uista gran contentamiento. Las
Nimphas y pastores tomaron una
senda que por entre el arroyo y la
hermosa arboleda se hazia, y no
anduuieron mucho espaçio,
quando llegaron a un uerde prado
muy espaçioso, a donde estaua
un muy hermoso estanque de
agua: del qual proçedia el arroyo
que por el ualle con gran[1249]
impetu corria. En medio del
estanque estaua una pequeña
isleta adonde auia algunos
arboles por entre los quales se
deuisaua una choça de pastores:
alrededor della andaua un rebaño
de ouejas, pasciendo la uerde
yerua. Pues como a las Nimphas
paresciesse aquel lugar
aparejado para passar la noche
que ya muy cerca venía, por unas
piedras que del prado a la isleta
estauan por medio del estanque
puestas en orden, passaron
todas, y se fueron derechas a la
choça, que en la isleta parescia. Y
como Polidora, entrando primero
dentro, se adelantasse un poco,
aun no huuo entrado, quando con
gran priessa boluio a salir, y
boluiendo el rostro a su
compañia, puso un dedo ençima
de su hermosa boca, haziendoles
señas que entrassen sin ruido.
Como aquello uiessen las
Nimphas y los pastores, con el
menes rumor que pudieron
entraron en la choça: y mirando a
una parte y a otra, uieron a un
rincon un lecho, no de otra cosa
sino de los ramos de aquellos
salces, que en torno de la choça
estauan, y de la uerde yerua, que
junto al estanque se criaua.
Ençima de la qual uieron una
pastora durmiendo, cuya
hermosura no menos admiraçion
les puso, que si la hermosa Diana
uieran delante de sus ojos. Tenia
una saya azul clara, un jubon de
una tela tan delicada, que
mostraua la perfeçion y compas
del blanco pecho, porque el
sayuelo que del mesmo color de
la saya era, le tenia suelto, de
manera que aquel graçioso buelto
se podia bien diuisar. Tenía los
cabellos, que más ruuios que el
sol parescian sueltos y sin orden
alguna. Mas nunca orden tanto
adornó hermosura, como la
desorden que ellos tenian, y con
el descuydo del sueño, el blanco
pie descalço, fuera de la saya se
le parescia, mas no tanto que a
los ojos de los que lo mirauan
paresciesse deshonesto. Y segun
parescia por muchas lagrimas,
que aun durmiendo por sus
hermosas mexillas derramaua, no
le deuia el sueño impedir sus
tristes imaginaciones. Las
Nimphas y pastores estauan tan
admirados de su hermosura y de
la tristeza que en ella conoscian,
que no sabian qué se dezir, si no
derramar lagrimas de piedad de
las que á la hermosa pastora
ueyan derramar. La qual estando
ellos mirando, se boluio hazia un
lado, diziendo con un sospiro que
del alma la salia: ¡ay desdichada
de ti, Belisa, que no está tu mal
en otra cosa, sino en ualer tan
poco tu uida, que con ella no
puedes pagar las que por causa
tuya son perdidas! Y luego con
tan grande sobresalto despertó,
que paresció tener el fin de sus
dias presente, mas como uiesse
las tres Nimphas, y las hermosas
dos pastoras, juntamente con los
dos pastores, quedó tan
espantada, que estuuo un rato sin
bolver en sí, boluiendo a mirallos,
sin dexar de derramar muchas
lagrimas, ni poner silençio a los
ardientes sospiros que del
lastimado coraçon embiaua,
començo a hablar desta manera.
Muy gran consuelo sería para tan
desconsolado coraçon como este
mio, estar segura de que nadie
con palabras, ni con obras
pretendiesse darmele, porque la
gran razon, ¡o hermosas
Nimphas! que tengo de biuir tan
embuelta en tristezas, como biuo,
ha puesto enemistad entre mí y el
consuelo de mi mal. De manera
que si pensasse en algun tiempo
tenelle, yo misma me daria la
muerte. Y no os espanteys
preuenirme yo deste remedio,
pues no ay otro para que me dexe
de agrauiar del sobresalto que
reçebi en ueros en esta choça
(lugar aparejado no para otra
cosa, sino para llorar males sin
remedio), y esto sea auiso, para
que qualquiera que a su tormento
le esperare, se salga dél: porque
infortunios de amor le tienen
cerrado, de manera que jamás
dexan entrar aqui alguna
esperança de consuelo.
Mas ¿qué uentura ha guiado tan
hermosa compañia do jamás se
uio cosa que diese contento?
¿Quién pensays que haze cresçer
la uerde yerua desta isla, y
acresçentar las aguas que la
çercan, si no mis lagrimas?
¿Quién pensays que menea los
arboles deste hermoso ualle, sino
la boz de mis sospiros tristes, que
inchando el ayre, hazen aquello
que él por sí no haria? ¿Porqué
pensays que cantan los dulçes
paxaros por entre las matas,
quando el dorado Phebo está en
toda su fuerça, sino para ayudar a
llorar mis desuenturas? ¿A qué
pensays que las temerosas fieras
salen al uerde prado, sino a oyr
mis continuas quexas? ¡Ay
hermosas Nimphas! no quiera
Dios que os aya traydo a este
lugar uuestra fortuna para lo que
yo uine a él, porque çierto
paresce (segun lo que en él
passó), no auelle hecho
naturaleza para otra cosa, sino
para que en él passen su triste
uida los incurables de amor. Por
esso si alguna de uosotras lo es,
no passe más adelante: y vayase
presto de aqui: que no sería
mucho que la naturaleza del lugar
le hiciesse fuerça. Con tantas
lagrimas dezia esto la hermosa
pastora, que no auia ninguno de
los que alli estauan, que las suyas
detener pudiesse. Todos estauan
espantados de uer el spiritu que
con el rostro y mouimientos daua
a lo que dezia, que çierto bien
pareçian sus palabras salidas del
alma: y no se suffria menos que
esto, porque el triste successo de
sus amores, quitaua la sospecha
de ser fingido lo que mostraua. Y
la hermosa Dorida le habló desta
manera: Hermosa pastora, ¿qué
causa ha sido la que tu gran
hermosura ha puesto en tal
estremo? ¿Qué mal tan estraño te
pudo hazer amor, que aya sido
parte para tantas lagrimas
acompañadas de tan triste y tan
sola uida, como en este lugar
deues hazer? Mas ¿qué pregunto
yo? Pues en uerte quexosa de
amor, me dizes más de lo que yo
preguntarte puedo. Quesiste
assegurar quando aqui entramos,
de que nadie te consolasse: no te
pongo culpa, officio es de
personas tristes, no solamente
aborrecer al consuelo, mas aun a
quien piensa que por alguna uia
pueda darsele. Dezir que yo
podria darle a tu mal, ¿que
aprouecha si él mismo no te da
liçençia que me creas? Dezir que
te aproueches de tu juyzio y
discreçion bien sé que no le
tienes tan libre, que puedas
hazello. Pues ¿qué podría yo
hazer para darte algun aliuio, si tu
determinaçion me ha de salir al
encuentro? De una cosa puedes
estar çertificada, y es que no
auria remedio en la uida, para que
la tuya no fuesse tan triste, que yo
dexase de dartele, si en mi mano
fuesse. Y si esta uoluntad alguna
cosa meresçe, yo te pido de parte
de los que presentes están, y de
la mia, la causa de tu mal nos
cuentes, porque algunos de los
que en mi compañia uienen,
estan con tan gran neçessidad de
remedio, y os tiene amor en tanto
estrecho, que si la fortuna no los
socorre, no sé que sera de sus
uidas. La pastora que de esta
manera uio hablar a Dorida,
saliendose de la choça, y
tomandola por la mano la lleuó
cerca de una fuente que en un
uerde pradezillo estaua, no muy
apartado de alli, y las Nimphas y
los pastores se fueron tras ellas, y
juntos se assentaron en torno a la
fuente, auiendo el dorado Phebo

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9.1 Multiple Choice Questions

Page's controlling interest share of consolidated net income for 2013 is

3) Noncontrolling interest share for Badrack is

4) Noncontrolling interest share for Achille is

Pabari Corporation $180,000

Explanation: D) Noncont. interest share: $8,400 Profit + ($12,000) Loss

Pabari Alders Babao

Controlling interest share of consolidated net income for 2014 is

Explanation: C) Pablo Abagia Babin

Explanation: C) Pace Abaza Babon

Pahm Abussi Badock

16) Ackroyd's noncontrolling interest share for 2014 is

A = $50,000 + 0.8 × ($30,000 + 0.1A)

Noncontrolling interest share

On January 1, 2014, the following data is available:

Stephen Company Pauline Company

At December 31, 2014, the following data is available:

January 1, 2014 December 31, 2014

Paice Accardi Badger

Abdoo Bach Cabo

Abdoo's investment in Bach:

Abdoo's investment in Cabo:

Controlling interest share

Noncontrolling interest share in Baird $20,000

Check: Total separate income = $100,000 + $40,000 + $55,000 = $195,000

A = $40,000 + (0.85) × ($55,000 + 0.05A)

B = $55,000 + (0.05) × ($90,601)

P = $100,000 + (0.9) × ($90,601)

A = $160,000 + 0.85 × ($220,000 + 0.05A)

Check: Total separate income = $400,000 + $160,000 + $220,000 = $780,000

Separate Percentage Interest Percentage Interest

Net income Dividends

Net income Dividends

Net income Dividends

Income from Sally 27,000

Noncontrolling interest share 3,000

Treasury stock 70,000

Retained earnings 100,000

Net income Dividends

Income from Gonzalez 8,000

Noncontrolling interest share 2,000

Treasury stock 50,000

Retained earnings 75,000

Peabody Company Salisbury Company

Noncontrolling interest share = 10% × $38,462 = $3,846

Klode Company Savy Company

Noncontrolling interest share = 20% × $61,957 = $12,391

Paul Company Satorius Company

Noncontrolling interest share = 10% × $159,341 = $15,934