Homework Answers
| The correct option is LAST | |||||||||||
| Sales and cost of goods sold should be reduced by the amount of intra entity sales. | |||||||||||
| Explanation: | |||||||||||
| Im the consolidated financial statement the intra sales purchases should be eliminated by way fo following entry | |||||||||||
| Sales …........ Debit | |||||||||||
| Cost Of Goods sold …......... Credit | |||||||||||
| Since all goods were sold during 2018, there is no requirement of adjustment regarding unreserve profit in the stock. | |||||||||||
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Perez, Inc., applies the equity method for its 25 percent investment in Senior, Inc. During 2018,...
8 to 11? could you also write a solution The Equity Method of Accounting for Investments...
8 to 11? could you also write a solution
The Equity Method of Accounting for Investments 29 8. Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although did not use it, this acquisition gave Franklin the ability to apply sinificant influence to Johnson operating and financing policies. Johnson reports assets on that date of $1.400,000 with lat of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books $140,000. Also, Johnson's book value...
This is all the information provided: Milani, Inc., acquired 10 percent of Seida Corporation on January...
This is all the information provided:
Milani, Inc., acquired 10 percent of Seida Corporation on
January 1, 2017, for $190,000 and appropriately accounted for the
investment using the fair-value method. On January 1, 2018, Milani
purchased an additional 30 percent of Seida for $600,000 which
resulted in significant influence over Seida. On that date, the
fair value of Seida’s common stock was $2,000,000 in total. Seida’s
January 1, 2018, book value equaled $1,850,000, although land was
undervalued by $120,000. Any...
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year,...
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $93,100 and then sells it to Watkins for $133,000. At the end of the year, Watkins still holds only $21,400 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice o $10,026. • $1,926. O $4,926. o $12,726.
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year,...
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end of the year, Watkins still holds only $25,300 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice $1,518. 0 $8,418. 0 $6,318. 0 $11,118.
Panner, Inc., owns 25 percent of Watkins and applies the equity method. During the current year,...
Panner, Inc., owns 25 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $133,600 and then sells it to Watkins for $167,000. At the end of the year, Watkins still holds only $27,000 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method?
BuyCo Inc. holds 25 percent of the outstanding shares of Marqueen company and appropriately applies the...
BuyCo Inc. holds 25 percent of the outstanding shares of Marqueen company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2017, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2017, BuyCo continued to hold merchandise with a transfer price of...
BuyCo Inc. holds 25 percent of the outstanding shares of Marqueen company and appropriately applies the...
BuyCo Inc. holds 25 percent of the outstanding shares of Marqueen company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2017, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2017, BuyCo continued to hold merchandise with a transfer price of...
Grand Teton Inc. own 25% of Grand Canyon Inc. and applies the equity method. During the...
Grand Teton Inc. own 25% of Grand Canyon Inc. and applies the equity method. During the current Year, Grand Teton sold merchandise with a cost of $120,000 to Grand Canyon for $180,000. At the end of the year Grand Canyon still hold half of that merchandise. What amount of gross profit should Grand Teton defer to next year? a. 7,500 b. 15,000 c. 30,000 d. 60,000 e. all answers incorrect
Up and its 80 percent-owned subsidiary (Down) reported the following figures for the year ending December...
Up and its 80 percent-owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $39,000 during this period Up $(780,000) 390,000 226,200 (31,200) Down Sales Cost of goods sold $(390,00e) 182,308 78,000 operating expme31,209, 780) Dividend income Net income $ (195,000) $(129,700) In 2017, intra-entity gross profits of $39,000 on upstream transfers of $117,000 were deferred into 2018. In 2018, intra-entity gross profits of $51,700 on upstream transfers of $142,400 were deferred...
Perez Corporation’s balance sheet indicates that the company has $610,000 invested in operating assets. During 2018,...
Perez Corporation’s balance sheet indicates that the company has $610,000 invested in operating assets. During 2018, Perez earned operating income of $74,420 on $1,220,000 of sales. Required Compute Perez’s profit margin for 2018. Compute Perez’s turnover for 2018. Compute Perez’s return on investment for 2018. Recompute Perez’s ROI under each of the following independent assumptions: (1) Sales increase from $1,220,000 to $1,464,000, thereby resulting in an increase in operating income from $74,420 to $87,840. (2) Sales remain constant, but Perez...
8 to 11? could you also write a solution
The Equity Method of Accounting for Investments 29 8. Franklin purchases 40 percent of Johnson Company on January 1 for $500,000. Although did not use it, this acquisition gave Franklin the ability to apply sinificant influence to Johnson operating and financing policies. Johnson reports assets on that date of $1.400,000 with lat of $500,000. One building with a seven-year remaining life is undervalued on Johnson's books $140,000. Also, Johnson's book value...
This is all the information provided:
Milani, Inc., acquired 10 percent of Seida Corporation on
January 1, 2017, for $190,000 and appropriately accounted for the
investment using the fair-value method. On January 1, 2018, Milani
purchased an additional 30 percent of Seida for $600,000 which
resulted in significant influence over Seida. On that date, the
fair value of Seida’s common stock was $2,000,000 in total. Seida’s
January 1, 2018, book value equaled $1,850,000, although land was
undervalued by $120,000. Any...
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $93,100 and then sells it to Watkins for $133,000. At the end of the year, Watkins still holds only $21,400 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice o $10,026. • $1,926. O $4,926. o $12,726.
Panner, Inc., owns 30 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $110,400 and then sells it to Watkins for $138,000. At the end of the year, Watkins still holds only $25,300 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method? Multiple Choice $1,518. 0 $8,418. 0 $6,318. 0 $11,118.
Panner, Inc., owns 25 percent of Watkins and applies the equity method. During the current year, Panner buys inventory costing $133,600 and then sells it to Watkins for $167,000. At the end of the year, Watkins still holds only $27,000 of merchandise. What amount of gross profit must Panner defer in reporting this investment using the equity method?
BuyCo Inc. holds 25 percent of the outstanding shares of Marqueen company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2017, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2017, BuyCo continued to hold merchandise with a transfer price of...
BuyCo Inc. holds 25 percent of the outstanding shares of Marqueen company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2017, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2017, BuyCo continued to hold merchandise with a transfer price of...
Up and its 80 percent-owned subsidiary (Down) reported the following figures for the year ending December 31, 2018. Down paid dividends of $39,000 during this period Up $(780,000) 390,000 226,200 (31,200) Down Sales Cost of goods sold $(390,00e) 182,308 78,000 operating expme31,209, 780) Dividend income Net income $ (195,000) $(129,700) In 2017, intra-entity gross profits of $39,000 on upstream transfers of $117,000 were deferred into 2018. In 2018, intra-entity gross profits of $51,700 on upstream transfers of $142,400 were deferred...
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