Protecto Corporation - indirect consolidation and cash flow statement
So, I'm confused about how I need to calculate these entries, and the book material just isn't clicking for me. Thanks in advance for any help!
Where possible, please include how you got the answer, as I would really like to be able to calculate these myself at some point.
One last request, if posting the answers as pictures, please make sure the text is readable.
Protecto Corporation purchased 70 percent of Strand Company’s outstanding shares on January 1, 20X1, for $33,600 more than book value. At that date, the fair value of the noncontrolling interest was $14,400 more than 30 percent of Strand’s book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $36,000 and later in the year sold it to Protecto for $48,000. Protecto is still holding the land as an investment. During 20X3, Protecto bonds with a value of $105,000 were exchanged for equipment valued at $105,000.
On January 1, 20X3, Protecto held inventory purchased previously from Strand for $49,200. During 20X3, Protecto purchased an additional $92,000 of goods from Strand and held $55,200 of this inventory on December 31, 20X3. Strand sells merchandise to the parent at cost plus a 20 percent markup.
Strand also purchases inventory items from Protecto. On January 1, 20X3, Strand held inventory it had previously purchased from Protecto for $14,700, and on December 31, 20X3, it held goods it had purchased from Protecto for $8,400 during 20X3. Strand’s total purchases from Protecto in 20X3 were $24,000. Protecto sells inventory to Strand at cost plus a 40 percent markup.
The consolidated balance sheet at December 31, 20X2, contained the following amounts:
Thanks again for the help!
Homework Answers
hi there, please refer to the question: https://www.homeworklib.com/question/1464311/protecto-corporation-purchased-60-percent-of
Add Answer to:
Protecto Corporation - indirect consolidation and cash flow statement
a. Prepare a worksheet for a consolidated statement of cash flows for 20X3 using the indirect...
a. Prepare a worksheet for a consolidated statement of cash
flows for 20X3 using the indirect method.
b. Prepare a consolidated statement of cash flows for 20X3.
Protecto Corporation purchased 75 percent of Strand Company's outstanding shares on January 1, 20X1, for $36,000 more than book value. At that date, the fair value of the noncontrolling interest was $16,000 more than 25 percent of Strand's book value. The full amount of the differential is considered related to patents and is...
Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $27,000...
Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $27,000 more than book value. At that date, the fair value of the noncontrolling interest was $17,000 more than 40 percent of Strand's book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $70,000 and later in the year sold it to Protecto for $84,000....
again Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for...
again
Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $40,500 more than book value. At that date, the fair value of the noncontrolling interest was $15,500 more than 40 percent of Strand's book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $64,000 and later in the year sold it to Protecto for...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets $ 116,000 $ 31,300 Noncurrent assets 107,500 49,200 Total assets $ 223,500 $ 80,500 Current liabilities $ 52,500 $ 30,500 Long-term debt 66,000 Stockholders' equity 105,000 50,000 Total liabilities and equities $ 223,500 $ 80,500 On January 2, Park borrowed $70,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate...
Consolidation of Less-Than-Wholly-Owned Subsidiaries Acquired at More than Book Value
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 and Soda reported $70,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a remaining...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets $ 110,000 $ 31,750 Noncurrent assets 102,750 47,500 Total assets $ 212,750 $ 79,250 Current liabilities $ 55,000 $ 29,250 Long-term debt 72,750 Stockholders' equity 85,000 50,000 Total liabilities and equities $ 212,750 $ 79,250 On January 2, Park borrowed $66,800 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand...
On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows: Park Strand Current assets $ 92,500 $ 31,050 Noncurrent assets 114,500 49,700 Total assets $ 207,000 $ 80,750 Current liabilities $ 44,000 $ 30,750 Long-term debt 64,000 Stockholders' equity 99,000 50,000 Total liabilities and equities $ 207,000 $ 80,750 On January 2, Park borrowed $58,400 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $109,200. At that date, the noncontrolling interest had a fair value of $46,800 and Soda reported $71,000 of common stock outstanding and retained earnings of $30,000. The differential is assigned to buildings and equipment, which had a fair value $20,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $35,000 higher than book value and a...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $118,300. At that date, the noncontrolling interest had a fair value of $50,700 and Soda reported $70,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $24,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $44,000 higher than book value and a...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for...
Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $112,700. At that date, the noncontrolling interest had a fair value of $48,300 and Soda reported $71,000 of common stock outstanding and retained earnings of $31,000. The differential is assigned to buildings and equipment, which had a fair value $28,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $31,000 higher than book value and a...
a. Prepare a worksheet for a consolidated statement of cash
flows for 20X3 using the indirect method.
b. Prepare a consolidated statement of cash flows for 20X3.
Protecto Corporation purchased 75 percent of Strand Company's outstanding shares on January 1, 20X1, for $36,000 more than book value. At that date, the fair value of the noncontrolling interest was $16,000 more than 25 percent of Strand's book value. The full amount of the differential is considered related to patents and is...
Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $27,000 more than book value. At that date, the fair value of the noncontrolling interest was $17,000 more than 40 percent of Strand's book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $70,000 and later in the year sold it to Protecto for $84,000....
again
Protecto Corporation purchased 60 percent of Strand Company's outstanding shares on January 1, 20X1, for $40,500 more than book value. At that date, the fair value of the noncontrolling interest was $15,500 more than 40 percent of Strand's book value. The full amount of the differential is considered related to patents and is being amortized over an eight-year period. In 20X1, Strand purchased a piece of land for $64,000 and later in the year sold it to Protecto for...
Most questions answered within 3 hours.
-
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 55 minutes ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 1 hour ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 2 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 3 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 3 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 4 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 6 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 6 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 6 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 6 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 6 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 6 hours ago