Homework Answers
Answer is option B
Because a portion of the gain is realized in the consolidated financial statements each year
There is increase in equity investment and decrease in retained earnings in the consolidation entries due to an intercompany sale of equipment at a gain.
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Flag this Question Question 342 pts In the years after a seller makes an intercompany sale...
Question text Preparing the [I] consolidation journal entries for sale of depreciable assets - Equity method...
Question text
Preparing the
[I] consolidation journal entries for sale of depreciable
assets - Equity method
Assume that on January 1, 2011, a wholly owned subsidiary sells to
its parent, for a sale price of $132,000, equipment that originally
cost $156,000. The subsidiary originally purchased the equipment on
January 1, 2007, and depreciated the equipment assuming a 10-year
useful life (straight-line with no salvage value). The parent has
adopted the subsidiary's depreciation policy and depreciates the
equipment over the remaining...
Prepare consolidation spreadsheet for intercompany sale of equipment - Equity method Assume a parent company acquired...
Prepare consolidation spreadsheet for intercompany sale
of equipment - Equity method
Assume a parent company acquired its subsidiary on January 1, 2015,
at a purchase price that was $222,000 in excess of the book value
of the subsidiary’s Stockholders’ Equity on the acquisition date.
Of that excess, $132,000 was assigned to a Customer List that is
being amortized over a 10-year period. The remaining $90,000 was
assigned to Goodwill.
In January of 2018, the wholly owned subsidiary sold Equipment
to...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its subsidiary on January 1, 2015, at a purchase price that was $222,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $132,000 was assigned to a Customer List that is being amortized over a 10-year period. The remaining $90,000 was assigned to Goodwill. In January of 2018, the wholly owned subsidiary sold Equipment to the...
50. Prepare consolidation spreadsheet for intercompany sale of equipment-Equity method Assume a parent company acquired its...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $460,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $300,000 and to an unrecorded Customer List valued at $160,000. The building...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired i...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2014, at a purchase price that was $300,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $200,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity...
Company A and Company B are related companies subject to consolidation. During the year, Company A...
Company A and Company B are related companies subject to consolidation. During the year, Company A sold office equipment to Company B for $50,000 on a note receivable / payable that had an original purchase price of $100,000 and accumulated depreciation at the time of sale of $10,000. The portion of the elimination entry at the time of consolidation to reverse out the gain or loss booked on this transaction would be: Question 13 options: a) Debit Gain on Sale...
Question: 1. An economic advantage of a business combination includes Acquiring duplicative assets Creating redundant management...
Question: 1. An economic advantage of a business combination includes Acquiring duplicative assets Creating redundant management teams Coordinating marketing campaigns Duplicating integrative marketing chains QUESTION 2 The consolidation process is performed each year since the entries are recorded in the journal and ledger only by the parent company each year since the entries are recorded in the journal and ledger only by the subsidiary company each year since the entries are recorded in the journal and ledger by both the...
CLICK HERE TO REVIEW LEARNING OBJECTMES QUESTION 5 Not complete Marked out of 9.00 Flag question...
CLICK HERE TO REVIEW LEARNING OBJECTMES QUESTION 5 Not complete Marked out of 9.00 Flag question Determining ending consolidated balances in the second year following the acquisitio Assume a parent company acquired a subsidiary on January 1, 2015. The purchase price wa $745,000 in excess of the subsidiary's book value of Stockholders Equity on the acquisition date, and that excess was assigned to the following [A] assets: Original Original Useful Life Amount (years) [AJ Asset Property, plent and equipment (PPE),...
Question 2Partially correctMark 5.00 out of 15.00 Not flaggedFlag question Question text Preparing a consolidated income...
Question 2Partially correctMark 5.00 out of 15.00 Not flaggedFlag question Question text Preparing a consolidated income statement—Equity method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $350,000 in excess of the subsidiary’s Stockholders’ Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by...
Question text
Preparing the
[I] consolidation journal entries for sale of depreciable
assets - Equity method
Assume that on January 1, 2011, a wholly owned subsidiary sells to
its parent, for a sale price of $132,000, equipment that originally
cost $156,000. The subsidiary originally purchased the equipment on
January 1, 2007, and depreciated the equipment assuming a 10-year
useful life (straight-line with no salvage value). The parent has
adopted the subsidiary's depreciation policy and depreciates the
equipment over the remaining...
Prepare consolidation spreadsheet for intercompany sale
of equipment - Equity method
Assume a parent company acquired its subsidiary on January 1, 2015,
at a purchase price that was $222,000 in excess of the book value
of the subsidiary’s Stockholders’ Equity on the acquisition date.
Of that excess, $132,000 was assigned to a Customer List that is
being amortized over a 10-year period. The remaining $90,000 was
assigned to Goodwill.
In January of 2018, the wholly owned subsidiary sold Equipment
to...
50. Prepare consolidation spreadsheet for intercompany sale of
equipment-Equity method Assume a parent company acquired its
subsidiary on January 1, 2015, at a purchase price that was
$222,000 in excess of the book value of the subsidiary's
Stockholders' Equity on the acquisition date. Of that excess,
$132,000 was assigned to a Customer List that is being amortized
over a 10-year period. The remaining $90,000 was assigned to
Goodwill. In January of 2018, the wholly owned subsidiary sold
Equipment to the...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $460,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $300,000 and to an unrecorded Customer List valued at $160,000. The building...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2014, at a purchase price that was $300,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $200,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity...
CLICK HERE TO REVIEW LEARNING OBJECTMES QUESTION 5 Not complete Marked out of 9.00 Flag question Determining ending consolidated balances in the second year following the acquisitio Assume a parent company acquired a subsidiary on January 1, 2015. The purchase price wa $745,000 in excess of the subsidiary's book value of Stockholders Equity on the acquisition date, and that excess was assigned to the following [A] assets: Original Original Useful Life Amount (years) [AJ Asset Property, plent and equipment (PPE),...
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