Homework Answers
12.The Consolidated cost of sales of Parker = 6,00,000+3,50,000-2,50,000=7,00,000
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We were unable to transcribe this image16. On June 30, year 1....
Company acquired a 70% interest in the Star Company in year 1. For the year ended...
Company acquired a 70% interest in the Star Company in year 1. For the year ended 91. year 2, Star reported net income of $80,000. During year 2, Star Co. sold to Planet Co. for $10,000 at a profit of $2.000. The merchandise remained in Star's 23. Planet Company acquired a 70% interest in the Star December 31, year 2, Star reported net income o merchandise to Planet Co. for $10,000 at a profit of S2 at the end, of...
Pole Company sold inventory to South Ltd., an English subsidiary. The goods cost Pole $9,800 and...
Pole Company sold inventory to South Ltd., an English subsidiary. The goods cost Pole $9,800 and were sold to South for $13,200 on November 27, payable in British pounds. The goods are still on hand at the end of the year on December 31. The British pound (£) is the functional currency of the English subsidiary. The exchange rates follow: November 27 December 31 € 1 = 1.60 1=1.70 Required: a. At what dollar amount is the ending inventory shown...
Computing the amount of investment income and preparing [U] consolidation entries-Cost method Assume that a wholly...
Computing the amount of investment income and preparing [U] consolidation entries-Cost method Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2018 and 2019: % Inventory Subsidiary Net Intercompany Remaining at Receivable Income Inventory Sales Gross Profit % End of Year (Payable) 2019 $900,000 $135,000 3096 2096 $45,000 2018 $720,000 $108,000 3596 1596...
Peat Company owns a 90% interest in Seaton Company. The consolidated income statement drafted by the...
Peat Company owns a 90% interest in Seaton Company. The
consolidated income statement drafted by the controller of Peat
Company appeared as follows:
Peat
Company and Subsidiary
Consolidated Income Statement
for Year Ended December 31, 2015
Sales
$14,098,400
Cost of Sales
9,191,200
Operating Expense
1,784,000
10,975,200
Consolidated Income
3,123,200
Less Noncontrolling Interest
in Consolidated Income
212,320
Controlling Interest in
Consolidated Net Income
$2,910,880
During your audit you discover that intercompany sales transactions
were not reflected in the controller’s draft of...
CH 6 - Comprehension check questions Name 2. Whether inter-company inventory sales are upstream or downstream...
CH 6 - Comprehension check questions Name 2. Whether inter-company inventory sales are upstream or downstream has no et feet on consolidation procedures when : a. A perpetual inventory system is used b. The goods are immediately resold to outsiders C. The subsidiary is 100% owned d. The goods are sold at cost One of the effects of eliminating intercompany profit from ending inventory is to: a. Reduce cost of goods sold b. Increase cost of goods sold c. Reduce...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory...
Preparing a consolidated income statement-Cost 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 $300,000 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 $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
what is the growth profit for plan A and plan B We were unable to transcribe...
what is the growth profit for plan A and plan B
We were unable to transcribe this imageMYour answer is correct. Compute the production cost per unit under each plan. (Round answ Plan A Plan B Production cost per unit 5.62 5.37 SHOW SOLUTION LINK TO TEXT By accessing this question Prepare a production budget for 2017 under each plan. RIVERBED INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 837,000 1,039,000...
Preparing a consolidated income statement—Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory...
Preparing a consolidated income statement—Cost 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 $300,000 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 $180,000 and to an unrecorded Trademark valued at
$120,000. The building asset...
On January 1, 2013, Price Company acquired an 80% interest in the common stock of Smith...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
Answers provided. Please explain how it is solved. The following information applies to Questions 21-25. On...
Answers provided. Please explain how it is solved. The following information applies to Questions 21-25. On January 1, 2020, Adamson, Inc. acquired the outstanding voting common stock of Skyview Corp. for $600,000. Of this payment, $85,000 was allocated to undervalued equipment (with a five-year life). Any remaining excess was attributable to goodwill. During 2020, Adamson bought inventory for $44,000 and sold it to Skyview for $98,500. 60% of these goods were still in the company's possession on December 31. The...
Company acquired a 70% interest in the Star Company in year 1. For the year ended 91. year 2, Star reported net income of $80,000. During year 2, Star Co. sold to Planet Co. for $10,000 at a profit of $2.000. The merchandise remained in Star's 23. Planet Company acquired a 70% interest in the Star December 31, year 2, Star reported net income o merchandise to Planet Co. for $10,000 at a profit of S2 at the end, of...
Pole Company sold inventory to South Ltd., an English subsidiary. The goods cost Pole $9,800 and were sold to South for $13,200 on November 27, payable in British pounds. The goods are still on hand at the end of the year on December 31. The British pound (£) is the functional currency of the English subsidiary. The exchange rates follow: November 27 December 31 € 1 = 1.60 1=1.70 Required: a. At what dollar amount is the ending inventory shown...
Computing the amount of investment income and preparing [U] consolidation entries-Cost method Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2018 and 2019: % Inventory Subsidiary Net Intercompany Remaining at Receivable Income Inventory Sales Gross Profit % End of Year (Payable) 2019 $900,000 $135,000 3096 2096 $45,000 2018 $720,000 $108,000 3596 1596...
Peat Company owns a 90% interest in Seaton Company. The
consolidated income statement drafted by the controller of Peat
Company appeared as follows:
Peat
Company and Subsidiary
Consolidated Income Statement
for Year Ended December 31, 2015
Sales
$14,098,400
Cost of Sales
9,191,200
Operating Expense
1,784,000
10,975,200
Consolidated Income
3,123,200
Less Noncontrolling Interest
in Consolidated Income
212,320
Controlling Interest in
Consolidated Net Income
$2,910,880
During your audit you discover that intercompany sales transactions
were not reflected in the controller’s draft of...
CH 6 - Comprehension check questions Name 2. Whether inter-company inventory sales are upstream or downstream has no et feet on consolidation procedures when : a. A perpetual inventory system is used b. The goods are immediately resold to outsiders C. The subsidiary is 100% owned d. The goods are sold at cost One of the effects of eliminating intercompany profit from ending inventory is to: a. Reduce cost of goods sold b. Increase cost of goods sold c. Reduce...
Preparing a consolidated income statement-Cost 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 $300,000 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 $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
what is the growth profit for plan A and plan B
We were unable to transcribe this imageMYour answer is correct. Compute the production cost per unit under each plan. (Round answ Plan A Plan B Production cost per unit 5.62 5.37 SHOW SOLUTION LINK TO TEXT By accessing this question Prepare a production budget for 2017 under each plan. RIVERBED INDUSTRIES Production Budget For the Year Ending December 31, 2017 Plan A Plan B Expected Unit Sales 837,000 1,039,000...
Preparing a consolidated income statement—Cost 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 $300,000 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 $180,000 and to an unrecorded Trademark valued at
$120,000. The building asset...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
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