On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan,...
On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of $500,000 and retained earnings of $185,000. James attributed the excess of acquisition-date fair value over Nolan’s book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan.
During the next two years, Nolan reported the following:
|
Income |
Dividends |
Inventory Transfers to |
|
|
2017 |
$78,000 |
$25,000 |
$190,000 |
|
2018 |
85,000 |
27,000 |
210,000 |
Nolan sells inventory to James after a markup based on a gross profit rate. At the end of 2017 and 2018, 30 percent of the current year purchases remain in James’s inventory.
Required
Create an Excel spreadsheet that computes the following:
-
Equity method balance in James’ Investment in Nolan, Inc., account as of December 31, 2018.
-
Worksheet adjustments for the December 31, 2018, consolidation of James and Nolan.
Formulate your solution so that Nolan’s gross profit rate on sales to James is treated as a variable.
Homework Answers
Add Answer to:
On January 1, 2017, James Company purchased 100 percent of the
outstanding voting stock of Nolan,...
Your Skills SE On January 1, 2017, James Company purchased 100 percent of the outstanding voting...
Your Skills SE On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of N Inc, for $1,000,000 in cash and other consideration. At the purchase date, Nolan had comm $500,000 and retained olan, on stock of and retained earnings of $185,000. James attributed the excess of acquisition-date fair over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan....
On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing,...
On January 1, 2017, Corgan Company acquired 70 percent of the
outstanding voting stock of Smashing, Inc., for a total of $805,000
in cash and other consideration. At the acquisition date, Smashing
had common stock of $740,000, retained earnings of $290,000, and a
noncontrolling interest fair value of $345,000. Corgan attributed
the excess of fair value over Smashing's book value to various
covenants with a 20-year remaining life. Corgan uses the equity
method to account for its investment in Smashing....
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing,...
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,080,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $780,000, retained earnings of $330,000, and a noncontrolling interest fair value of $270,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing....
On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing,...
On January 1, 2017, Corgan Company acquired 70 percent of the outstanding voting stock of Smashing, Inc., for a total of $700,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $710,000, retained earnings of $260,000, and a noncontrolling interest fair value of $300,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing....
Check my work On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting...
Check my work On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $840,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $720,000, retained earnings of $270,000, and a noncontrolling interest fair value of $210,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its...
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing Inc., for a total of $980,000 in cash and other consideration
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $700,000, retained earnings of $250,000, and a noncontrolling interest fair value of $245,000. Corvan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing.During...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,152,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,210,000 and Retained Earnings of $60,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $128,000. QuickPort attributed the $9,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,107,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,150,000 and Retained Earnings of $57,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $123,000. QuickPort attributed the $22,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed,...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $999,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,050,000 and Retained Earnings of $52,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $111,000. QuickPort attributed the $7,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
Your Skills SE On January 1, 2017, James Company purchased 100 percent of the outstanding voting stock of N Inc, for $1,000,000 in cash and other consideration. At the purchase date, Nolan had comm $500,000 and retained olan, on stock of and retained earnings of $185,000. James attributed the excess of acquisition-date fair over Nolan's book value to a trade name with an estimated 25-year remaining useful life. James uses the equity method to account for its investment in Nolan....
On January 1, 2017, Corgan Company acquired 70 percent of the
outstanding voting stock of Smashing, Inc., for a total of $805,000
in cash and other consideration. At the acquisition date, Smashing
had common stock of $740,000, retained earnings of $290,000, and a
noncontrolling interest fair value of $345,000. Corgan attributed
the excess of fair value over Smashing's book value to various
covenants with a 20-year remaining life. Corgan uses the equity
method to account for its investment in Smashing....
On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,080,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $780,000, retained earnings of $330,000, and a noncontrolling interest fair value of $270,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its investment in Smashing....
Check my work On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $840,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $720,000, retained earnings of $270,000, and a noncontrolling interest fair value of $210,000. Corgan attributed the excess of fair value over Smashing's book value to various covenants with a 20-year remaining life. Corgan uses the equity method to account for its...
On January 1, 2017, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $1,152,000 in cash and stock options. At the acquisition date, NetSpeed had common stock of $1,210,000 and Retained Earnings of $60,500. The acquisition-date fair value of the 10 percent noncontrolling interest was $128,000. QuickPort attributed the $9,500 excess of NetSpeed's fair value over book value to a database with a five-year remaining life. During the next two years, NetSpeed reported the following:...
Most questions answered within 3 hours.
-
In this assignment you will implement software for your local
library. The user of the software...
asked 45 seconds ago -
Create a bottom-up solution to
the minimum
falling path sum problem. By bottom-up, I mean you should not
use...
asked 1 minute ago -
Suppose that the supply of barley is given by the supply
function : Qs= 500+5p+2r
where...
asked 15 seconds ago -
A chemist dilutes 82.1 ml of 4.07 M sodium chloride to make a
1.7 M solution....
asked 4 minutes ago -
A cell biologist interested in the transport of calcium ions
(Ca2+) across the plasma membrane of...
asked 9 minutes ago -
Suppose the average time it takes to drive from SFSU to Redwood
City is 41 minutes,...
asked 16 minutes ago -
The more formal name for a balance sheet is:
A) statement of net worth
B) statement...
asked 12 minutes ago -
In
stable industries, such as retailers, the gross profit is generally
volatile from year to year?
asked 15 minutes ago -
Two identical positive point charges (q1 = q2 = +2.00 nC) are
placed at the bottom...
asked 16 minutes ago -
1. When you a place a rubber loose rubber band in contact with
your lip, you...
asked 17 minutes ago -
In 500 words or more, explain PCI compliance to the
database administrator at a large retailer....
asked 29 minutes ago -
Find
z0
such that
P(−z0 < z < z0) = 0.6.
(Round your answer to two...
asked 34 minutes ago