Math Snap

STEP 1

1. Passerby International owns 80% of Standaround Company.
2. The fair value of Standaround's net assets equals the book value.
3. Consolidated financial statements combine the parent and subsidiary as a single entity.
4. Non-controlling interest (NCI) needs to be calculated for the remaining 20% of Standaround.
5. Goodwill is not present since the fair value of net assets equals book value.

STEP 2

1. Calculate the consolidated assets.
2. Calculate the consolidated liabilities.
3. Calculate the consolidated capital stock.
4. Calculate the consolidated retained earnings.
5. Calculate the non-controlling interest.

STEP 3

Calculate consolidated assets:
$$\text{Consolidated Assets} = \text{Passerby Assets} + \text{Standaround Assets}$$ $$= \$1,600,000 + \$470,000 = \$2,070,000$$

STEP 4

Calculate consolidated liabilities:
$$\text{Consolidated Liabilities} = \text{Passerby Liabilities} + \text{Standaround Liabilities}$$ $$= \$840,000 + \$230,000 = \$1,070,000$$

STEP 5

Calculate consolidated capital stock:
$$\text{Consolidated Capital Stock} = \text{Passerby Capital Stock}$$ $$= \$360,000$$

STEP 6

Calculate consolidated retained earnings:
$$\text{Consolidated Retained Earnings} = \text{Passerby Retained Earnings}$$ $$= \$400,000$$

Calculate non-controlling interest (NCI):
$$\text{NCI} = \text{Standaround Net Assets} \times \text{NCI Percentage}$$ $$= (\text{Standaround Assets} - \text{Standaround Liabilities}) \times 20\%$$ $$= (\$470,000 - \$230,000) \times 0.20 = \$48,000$$ The consolidated balances as of January 2, 2014, are:
- Consolidated Assets: $2,070,000
- Consolidated Liabilities: $1,070,000
- Consolidated Capital Stock: $360,000
- Consolidated Retained Earnings: $400,000
- Non-Controlling Interest: $48,000