Tommy Company owns 60% of Sally Company. Sally owes Tommy $200,000. In preparing the consolidated financial...
Tommy Company owns 60% of Sally Company. Sally owes Tommy $200,000. In preparing the consolidated financial statements, what amount of Sally’s liability should be eliminated?
|
$120,000 |
||
|
$0 |
||
|
$200,000 |
||
|
$80,000 |
||
|
$100,000 |
Homework Answers
The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.
Add Answer to:
Tommy Company owns 60% of Sally Company. Sally owes Tommy
$200,000. In preparing the consolidated financial...
Glacier Company owns 70% of Guadalupe Company. During the current year Guadalupe reported net income of...
Glacier Company owns 70% of Guadalupe Company. During the current year Guadalupe reported net income of $500,000 and paid dividends of $200,000. The tax rate is 25%. Assume dividends received are deducted at 65% for ownership between 20% and 80%. What differed income tax liability should be recognized? O $12,250 0 $49,000 O $17,500 0 $18,375 O $73,500 Sababa Company owns 60% of Basa Company. Basa owes Sababa $200,000. In preparing the consolidated financial statements, what amount of Basa's liability...
Which one of the following financial statements summarizes what a company owns and owes on a...
Which one of the following financial statements summarizes what a company owns and owes on a specific date? Multiple choice question. Statement of Cash Flows Balance Sheet Income Statement Profit and Loss Statement
In regard to preparing consolidated financial statements for a subsidiary and parent company, when considering the...
In regard to preparing consolidated financial statements for a subsidiary and parent company, when considering the amount of inventory to defer or recognize in an upstream or downstream sale, does the percentage of the amount still in inventory at the end of each period become a factor? If so, in what respect?
Homework for intra-entity transactions. Part I Paula Corporation owns all of the voting common stock of...
Homework for intra-entity transactions. Part I Paula Corporation owns all of the voting common stock of Sally Company. Sally manufactures toys and sells them to Paula. In turn, Paula sells them to customers. Neither of these companies do anything else. At the beginning of 2012 neither company had any inventory. During 2012 Sally manufactured 120,000 toys and sold 100,000 of them to Paula for $10 each and Paula sold 90,000 of these toys to customers for $16 each. These toys...
Pearl Company owns 60% of the voting shares of Jasper Inc. which it acquired on the...
Pearl Company owns 60% of the voting shares of Jasper Inc. which it acquired on the latter’s incorporation on January 1, 2012, and accounts for its investment using the cost method. The Income Statements for the two companies for the year ended December 31, 2012, are as follows: Pearl Company Jasper Inc. Sales $ 3,200,000 $ 1,200,000 Dividend income 60,000 - 3,260,000 1,200,000 Cost of sales 2,400,000 900,000 Other expenses 300,000 ...
Porch Company owns a 90% interest in the Screen Company. Porch sold Screen a milling machine...
Porch Company owns a 90% interest in the Screen Company. Porch sold Screen a milling machine on January 1, 2016, for $50,000 when the book value of the machine on Porch's books was $40,000. Porch financed the sale with Screen signing a 3-year, 8% interest, and note for the entire $50,000. The machine will be used for 10 years and depreciated using the straight-line method. Interest is accrued at year end. What will be the amounts eliminated in preparing the...
Porch Company owns a 90% interest in the Screen Company. Porch sold Screen a milling machine on January 1, 2016, for $50...
Porch Company owns a 90% interest in the Screen Company. Porch sold Screen a milling machine on January 1, 2016, for $50,000 when the book value of the machine on Porch's books was $40,000. Porch financed the sale with Screen signing a 3-year, 8% interest, and note for the entire $50,000. The machine will be used for 10 years and depreciated using the straight-line method. Interest is accrued at year end. What will be the amounts eliminated in preparing the...
River Co. owns 80% of Boat Inc. The two companies file a consolidated income tax return...
River Co. owns 80% of Boat Inc. The two companies file a consolidated income tax return and River uses the initial value method to account for the investment. The following information is available from the two companies' financial statements: River Co. Boat Inc. Separate operating income (excludes equity or dividend income from subsidiary) $600,000 $120,000 Net intra-entity gains on assets remaining in the consolidated entity in current year income (included in separate operating income above) 50,000 15,000 Dividends received from...
At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock...
At the time of liquidation, Fairchild Company reported assets of $200,000, liabilities of $120,000, common stock of $90,000 and retained earnings of ($10,000). What amount of Fairchild's assets are the shareholders entitled to receive? Multiple Choice $200,000 $80,000 $90,000 $100,000
Small-Town Retail owns 70 percent of Supplier Corporation's common stock. For the current financial year, Small-Town...
Small-Town Retail owns 70 percent of Supplier Corporation's common stock. For the current financial year, Small-Town and Supplier reported sales of $450,000 and $300,000 and expenses of $290,000 and $240,000, respectively. 16. Based on the preceding information, what is the amount of net income to be reported in the consolidated income statement for the year under the proprietary theory approach? A. $210,000 B. $202,000 C. $160,000 D. $200,000 *I know the answer is $202,000 but if you can please show...
Glacier Company owns 70% of Guadalupe Company. During the current year Guadalupe reported net income of $500,000 and paid dividends of $200,000. The tax rate is 25%. Assume dividends received are deducted at 65% for ownership between 20% and 80%. What differed income tax liability should be recognized? O $12,250 0 $49,000 O $17,500 0 $18,375 O $73,500 Sababa Company owns 60% of Basa Company. Basa owes Sababa $200,000. In preparing the consolidated financial statements, what amount of Basa's liability...
Most questions answered within 3 hours.
-
Please Identify the Term "Determinism" in Psychology
asked 52 seconds from now -
Two kg of ice at -15 °C are placed in a 2 kg bath of water...
asked 20 seconds from now -
Describe the following with suitable
examples.
1- Security Policy Heterogeneity
2-Security Model Heterogeneity
3-Security Mechanism Heterogeneity...
asked 35 seconds ago -
The table below represents the number of republicans, democrats
and independent voting on a specific issue....
asked 4 minutes ago -
List and compare different forms of passive transport and active
transport.
asked 12 minutes ago -
In Netherland Dwarf rabbits, dwarf size is determined by allele
N, and normal-size by allele n....
asked 18 minutes ago -
During Heaton Company’s first two years of operations, it
reported absorption costing net operating income as...
asked 33 minutes ago -
Consider testing the
hypotheses:
H0: p = 0.56
H1: p > 0.56
where p is
the...
asked 36 minutes ago -
In a two-factor analysis of variance a main effect is defined as
____.
a. the unique...
asked 43 minutes ago -
A bank's loan officer rates applicants for credit. The ratings
are normally distributed with a mean...
asked 44 minutes ago -
Fill in the following information for Adipic Acid: molecular
weight, g or ml, mole, melting point,...
asked 49 minutes ago -
how
to use a for loop to iterate over the string below and print each
character...
asked 51 minutes ago