Homework Answers
Ans. 14: Preparation of the consolidated income statement is as follows:
* Inter company loans to be recorded.
* overheads should be allocated based on applicable factor.
* proper allocation of payroll expenses to be made to subsidiary.
* Inter company transactions should be eliminated.
* Minority interest should be calculated.
Add Answer to:
question 14
aueTCntal. 34 14. A subsidiary was acquired in the middle of the fiscal year...
Inferring consolidation entries from consolidated financial statements—Cost method Assume a parent company acquired a subsidiary on...
Inferring consolidation entries from consolidated financial statements—Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,312,000 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: [A] Asset Original Amount Original Useful Life Property, plant and equipment (PPE), net $300,000 20 years Patent 432,000 12 years Goodwill 580,000 Indefinite $1,312,000 The parent company uses the cost method of...
Parent acquired Subsidiary on January 1, 2020 at a price $450,000 in excess of book value....
Parent acquired Subsidiary on January 1, 2020 at a price $450,000 in excess of book value. Of that excess, $350,000 was allocated to an unrecorded patent with a 10-year life, with the remainder to goodwill. The Subsidiary’s retained earnings balance on the date of acquisition was $1,379,650. The Parent uses the cost method to account for its investment in the Subsidiary. In 2021, Subsidiary sold to Parent land having a book value of $90,000 for a total price of $244,000....
Assume that on January 1, 2018, a parent company acquired an 85% interest in a subsidiary's...
Assume that on January 1, 2018, a parent company acquired an 85% interest in a subsidiary's voting common stock. On the date of acquisition, the fair-value of the subsidiary's net assets equaled their reported book values except for machinery and equipment, which had a fair value of $780,000 and a reported book value of $325,000. the machinery and equipment had a 5-year remaining useful life and no salvage value. The following are the highly summarized pre-consolidation income statements of the...
Please show your work if possible Parent acquired 100% of Subsidiary on December 31, 20X0, when...
Please show your work if possible
Parent acquired 100% of Subsidiary on December 31, 20X0, when its net book values and fair values were as follows. Note Note Receivable Payable Term Interest rate 4.20% 4.50% 7 7 Excess Remaining useful life of equipment 10 Remaining useful life of patent 5 December 31, 20X0 Book Value Fair Value Cash $ 98,000 $ 98,000 $ Other assets 405,000 405,000 Equipment 969,000 870,000 Accumulated depreciation (300,000) Note receivable 66,000 62,000 Patent 89,000 107,000...
17. A parent company consolidates its 80%-owned subsidiary. It is now December 31, 2021. The following...
17. A parent company consolidates its 80%-owned subsidiary. It is now December 31, 2021. The following information is available: • The subsidiary's reported net income for 2021 is $30,000. • The subsidiary sells merchandise to the parent at a markup of 15% on cost. The parent's 2021 ending inventory balance contains $1,725 in merchandise purchased from the subsidiary. The parent's 2021 beginning inventory contains $2,300 in merchandise purchased from the subsidiary. Total sales price of merchandise transferred between the subsidiary...
Additional Information for 2018 The parent issued bonds during the year for cash. Amortization of...
We were unable to transcribe this imageAdditional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a paren...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 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 [A] Asset Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
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 2 (10 marks) The Parent company acquires all issued capital of the subsidiary company for...
Question 2 (10 marks) The Parent company acquires all issued capital of the subsidiary company for a consideration of $1000000 cash and 800000 shares each valued at $1.25. The summary statement of financial position of the subsidiary company immediately following the acquisition is: Fair value of assets acquired Fair value of liabilities acquired Total shareholders’ equity of the subsidiary company Retained earnings of the subsidiary company Required: $2640000 $720000 $800000 $1120000 (i) Pass the necessary journal entry to record the...
Consolidation several years subsequent to date of acquisition—Equity method Assume a parent company acquired a subsidiary...
Consolidation several years subsequent to date of acquisition—Equity method Assume a parent company acquired a subsidiary on January 1, 2017. The purchase price was $820,000 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: [A] Asset Original Amount Original Useful Life Property, plant and equipment (PPE), net $240,000 12 years Patent 240,000 8 years License 160,000 10 years Goodwill 180,000 Indefinite $820,000 The [A] assets...
Please show your work if possible
Parent acquired 100% of Subsidiary on December 31, 20X0, when its net book values and fair values were as follows. Note Note Receivable Payable Term Interest rate 4.20% 4.50% 7 7 Excess Remaining useful life of equipment 10 Remaining useful life of patent 5 December 31, 20X0 Book Value Fair Value Cash $ 98,000 $ 98,000 $ Other assets 405,000 405,000 Equipment 969,000 870,000 Accumulated depreciation (300,000) Note receivable 66,000 62,000 Patent 89,000 107,000...
17. A parent company consolidates its 80%-owned subsidiary. It is now December 31, 2021. The following information is available: • The subsidiary's reported net income for 2021 is $30,000. • The subsidiary sells merchandise to the parent at a markup of 15% on cost. The parent's 2021 ending inventory balance contains $1,725 in merchandise purchased from the subsidiary. The parent's 2021 beginning inventory contains $2,300 in merchandise purchased from the subsidiary. Total sales price of merchandise transferred between the subsidiary...
We were unable to transcribe this imageAdditional Information for 2018 The parent issued bonds during the year for cash. Amortization of databases amounts to $26,000 per year. The parent sold a building with a cost of $102,000 but a $51,000 book value for cash on May 11 . The subsidiary purchased equipment on July 23 for $249,000 in cash .Late in November, the parent issued stock for cash During the year, the subsidiary paid dividends of $52,000. Both parent and...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 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 [A] Asset Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
Most questions answered within 3 hours.
-
Merchandise inventory includes: (You may select more
than one answer. Single click the box with the...
asked 3 minutes ago -
A 12.2 g sample of an aqueous solution of
perchloric acid contains an unknown amount of...
asked 2 minutes ago -
A student remembered that the side toward the window in the
classroom was the debit side...
asked 9 minutes ago -
(A) For the following reaction, 0.447 moles of
sulfur dioxide are mixed with
0.403 moles of...
asked 17 minutes ago -
When a hacker causes problems, potentially even harming people,
obviously the hacker is legally responsible. But...
asked 20 minutes ago -
Suppose that y1,...,yn|β are iid Exponential with mean 1/β and
that β is marginally Exponential with...
asked 35 minutes ago -
In the figure below, a block of mass m=5 kg is pulled along a
horizontal frictionless...
asked 34 minutes ago -
The power of a statistical test is defined as the probability
of:
A. retaining a true...
asked 59 minutes ago -
QUESTIONS:
Is the mechanical energy remaining the same
(conserved) with time?
Is the decrease in the...
asked 46 minutes ago -
ABC Co. is financed 100% by common stock and has outstanding 20
million shares with a...
asked 57 minutes ago -
Please show work
Phosgene (COCl2) is a toxic substance that forms readily from
carbon monoxide and...
asked 49 minutes ago -
_____________are processes that run software for network clients
and thus enable clients to share processing power...
asked 50 minutes ago