Homework Answers
Depreciation = $63600 / 5 = $12,720
Income from sale = $63600 - 47750 - 12720 = $3,130
Historical depreciation = $47750 / 5 = $9550
Consolidated net income in 2017 = (3130)+(9550) = $(12680)
Consolidated net income in 2018 = 12720-9550 = $3170
Third option is correct answer.
Add Answer to:
Problem 5-8 (LO 5-7) Dunn Corporation owns 100 percent of Grey Corporation's common stock. On January...
Problem 5-9 (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1...
Problem 5-9 (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10- year life for $480,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $401,600. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2018, how...
Problem 5-9 (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated....
Problem 5-9 (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $444,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $394,400. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2018, how does...
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016,...
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $444,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $394,400. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2018, how does this transfer affect the...
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016,...
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $410,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $370,400. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial 8, how does this transfer affect the computation of...
Problem 5-24 (LO 5-7) On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned...
Problem 5-24 (LO 5-7) On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $210,000 In cash. The equipment had originally cost $189,000 but had a book value of only $115,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $310,000 In net Income in 2018 (not including any Investment Income) while Brannlgan reported $101,300. Ackerman attributed any excess acquisition date fair value...
Problem 5-24 (LO 5-7) Check my work On January 1, 2018, Ackerman sold equipment to Brannigan...
Problem 5-24 (LO 5-7) Check my work On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $260,000 in cash. The equipment had originally cost $234.000 but had a book value of only $143,000 when transferred. On that date, the equipment had a five- year remaining life. Depreciation expense is computed using the straight-line method Ackerman reported $360,000 in net income in 2018 (not including any investment income) while Brannigan reported $117,800. Ackerman attributed any excess...
Problem 5-18 (LO 5-1, 5-3, 5-4, 5-5, 5-6, 5-7) Placid Lake Corporation acquired 90 percent of...
Problem 5-18 (LO 5-1, 5-3, 5-4, 5-5, 5-6, 5-7) Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $460,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $4,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $360,000. Scenic reported net income of $170,000....
NEED ANSWERS ASAP Pan Corporation owns 65 percent of Sauce Corporation's voting shares. On January 1, 20X3, Pan Corporation sold $300,000 par value 7 percent bonds to Sauce when the market interes...
NEED ANSWERS ASAP Pan Corporation owns 65 percent of Sauce Corporation's voting shares. On January 1, 20X3, Pan Corporation sold $300,000 par value 7 percent bonds to Sauce when the market interest rate was 4 percent. The bonds mature in 15 years and pay interest semiannually on June 30 and December 31. Based on the information given above, in the preparation of the 20X3 consolidated financial statements, interest income will be: credited for $21,000 in the consolidation entries. credited for...
Problem 5-17 (LO 5-3, 5-4, 5-5) On January 1, 2017, Corgan Company acquired 80 percent of...
Problem 5-17 (LO 5-3, 5-4, 5-5) On January 1, 2017, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $1,440,000 in cash and other consideration. At the acquisition date, Smashing had common stock of $870,000, retained earnings of $420,000, and a noncontrolling interest fair value of $360,000. 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...
Problem 5-17 (LO 5-3,5-4,5-5) On January 1, 2017, Corgan Company acquired 80 percent of the outstanding...
Problem 5-17 (LO 5-3,5-4,5-5) 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...
Problem 5-9 (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10- year life for $480,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $401,600. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2018, how...
Problem 5-9 (LO 5-7) Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $444,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $394,400. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2018, how does...
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $444,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $394,400. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial statements for 2018, how does this transfer affect the...
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2016, Thomson acquired a building with a 10-year life for $410,000. Thomson depreciated the building on the straight-line basis assuming no salvage value. On January 1, 2018, Thomson sold this building to Stayer for $370,400. At that time, the building had a remaining life of eight years but still no expected salvage value. In preparing financial 8, how does this transfer affect the computation of...
Problem 5-24 (LO 5-7) On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $210,000 In cash. The equipment had originally cost $189,000 but had a book value of only $115,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $310,000 In net Income in 2018 (not including any Investment Income) while Brannlgan reported $101,300. Ackerman attributed any excess acquisition date fair value...
Problem 5-24 (LO 5-7) Check my work On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $260,000 in cash. The equipment had originally cost $234.000 but had a book value of only $143,000 when transferred. On that date, the equipment had a five- year remaining life. Depreciation expense is computed using the straight-line method Ackerman reported $360,000 in net income in 2018 (not including any investment income) while Brannigan reported $117,800. Ackerman attributed any excess...
Problem 5-17 (LO 5-3,5-4,5-5) 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...
Most questions answered within 3 hours.
-
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 10 minutes ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 1 hour ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 57 minutes ago -
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 35 minutes ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 1 hour ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 2 hours ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 2 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 2 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 2 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 3 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 3 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 3 hours ago