Consolidation Practice Question –Wholly Owned Subsidiary
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
when the subsidiary is less-than-wholly owned and there is a differential, how does the consolidation process...
when the subsidiary is less-than-wholly owned and there is a differential, how does the consolidation process differ?
Chapter 4 Consolidation of Wholly Owned Subsidiaries Acquired ar More than Book Value 179 -12 Consolidation...
Chapter 4 Consolidation of Wholly Owned Subsidiaries Acquired ar More than Book Value 179 -12 Consolidation Entries with Differential On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Sum- marized balance sheet data for the two companies immediately after the stock acquisition are as follows: Tower Corp. Item $ 15,000 30,000 80,000 120,000 100,000 $345,000 Brown Company Book Value Fair Value $ 5,000 $ 5,000 10,000 10,000 20,000 25,000 50,000 70,000 Cash Accounts Receivable Inventory...
pter 5 Consolidation of Less-than-Wholly-Owned Subsidiaries Acquired at More than Bool Vatue E5-3 Consolidation Entries with...
pter 5 Consolidation of Less-than-Wholly-Owned Subsidiaries Acquired at More than Bool Vatue E5-3 Consolidation Entries with Differential On June 10, 20X8 , Private Corporation acquired 60 percent of Secret Company's common stock. The fair value of the noncontrolling interest was $32,800 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows: Secret Company Private Corp. Fair Value Book Value Book Value dvanced udyGuide Item $ 5,000 10,000 5,000 10,000 $ 25,800...
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...
6-The separate income statements Hartford Corporation and its wholly owned subsidiary, Sacramento Co., for 2020 are...
6-The separate income statements Hartford Corporation and its wholly owned subsidiary, Sacramento Co., for 2020 are presented below: Hartford Sacramento Sales Revenue $390,000 $68,250 Cost of Goods Sold 160,000 38,000 Gross Profit 230,000 30,250 Operating Expenses 80,000 16,000 Sacramento's net income $ 14,250 Hartford's net income from its own $150,000 operations Note that Hartford's income statement includes no investment-related accounting or adjustments for Sacramento. During 2020, Hartford sold merchandise costing $6,750 to Sacramento for $15,000. At the end of 2020,...
A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000....
A parent company sells land to its wholly-owned subsidiary in 2015, reporting a gain of $35,000. In 2020, the subsidiary sells the land to an outside developer and reports a gain of $60,000. In the 2020 consolidation working paper, the elimination of this transaction will result in: A. A $95,000 decrease in land B. A $60,000 increase in investment in subsidiary C. A $35,000 increase in gain on sale of land D. A $35,000 decrease in beginning retained earnings
On January 1, 2019, Purple Inc. acquired Yellow Company as a wholly-owned subsidiary in Canada for...
On January 1, 2019, Purple Inc. acquired Yellow Company as a wholly-owned subsidiary in Canada for $51,000 (US$). Yellow’s Dec 31, 2019 pre-closing Trial Balance in Canadian dollar (CAN$) is as follows: (in CAN$) Accounts Debit Credit Current assets 57,000 PP&E, net 90,000 Liabilities 62,000 Common stock 60,000 Retained earnings 0 Sales 150,000 COGS and Expenses 110,000 Dividends 15,000 Total 272,000 272,000 Additional information: a) Canadian dollar is the functional currency for Yellow Company. b) Dividends were declared and paid...
On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for...
On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. Assume Republic...
On April 1, 2016, Mumford Company sold equipment to its wholly owned subsidiary, Stapp Corporation, for...
On April 1, 2016, Mumford Company sold equipment to its wholly owned subsidiary, Stapp Corporation, for $306,000. At the time of the transfer, the asset had an original cost (to Mumford) of $350,000 and accumulated depreciation of $110,000. The equipment has a ten-year estimated remaining life. Stapp reported net income of $500,000, $580,000 and $620,000 in 2016, 2017, and 2018, respectively. Mumford received dividends from Stapp of $180,000, $210,000 and $240,000 for 2016, 2017, and 2018, respectively. Assume Mumford uses...
Computing the amount of investment income and preparing [U] consolidation entries-Cost method Assume that a wholly...
Computing the amount of investment income and preparing [U] consolidation entries-Cost method Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2018 and 2019: % Inventory Subsidiary Net Intercompany Remaining at Receivable Income Inventory Sales Gross Profit % End of Year (Payable) 2019 $900,000 $135,000 3096 2096 $45,000 2018 $720,000 $108,000 3596 1596...
Chapter 4 Consolidation of Wholly Owned Subsidiaries Acquired ar More than Book Value 179 -12 Consolidation Entries with Differential On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Sum- marized balance sheet data for the two companies immediately after the stock acquisition are as follows: Tower Corp. Item $ 15,000 30,000 80,000 120,000 100,000 $345,000 Brown Company Book Value Fair Value $ 5,000 $ 5,000 10,000 10,000 20,000 25,000 50,000 70,000 Cash Accounts Receivable Inventory...
pter 5 Consolidation of Less-than-Wholly-Owned Subsidiaries Acquired at More than Bool Vatue E5-3 Consolidation Entries with Differential On June 10, 20X8 , Private Corporation acquired 60 percent of Secret Company's common stock. The fair value of the noncontrolling interest was $32,800 on that date. Summarized balance sheet data for the two companies immediately after the stock purchase are as follows: Secret Company Private Corp. Fair Value Book Value Book Value dvanced udyGuide Item $ 5,000 10,000 5,000 10,000 $ 25,800...
6-The separate income statements Hartford Corporation and its wholly owned subsidiary, Sacramento Co., for 2020 are presented below: Hartford Sacramento Sales Revenue $390,000 $68,250 Cost of Goods Sold 160,000 38,000 Gross Profit 230,000 30,250 Operating Expenses 80,000 16,000 Sacramento's net income $ 14,250 Hartford's net income from its own $150,000 operations Note that Hartford's income statement includes no investment-related accounting or adjustments for Sacramento. During 2020, Hartford sold merchandise costing $6,750 to Sacramento for $15,000. At the end of 2020,...
Computing the amount of investment income and preparing [U] consolidation entries-Cost method Assume that a wholly owned subsidiary sells inventory to the parent company. The parent company, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending 2018 and 2019: % Inventory Subsidiary Net Intercompany Remaining at Receivable Income Inventory Sales Gross Profit % End of Year (Payable) 2019 $900,000 $135,000 3096 2096 $45,000 2018 $720,000 $108,000 3596 1596...
Most questions answered within 3 hours.
-
Scenario:
Anytown FD is a combination department with one station. Its
district is surrounded by four...
asked 2 minutes ago -
5. Ethics deals with the moral quality, fitness, or propriety of
a course of action that...
asked 4 minutes ago -
Single Plantwide Factory Overhead Rate
Kennedy Appliance Inc.’s Machining Department incurred $102,900
of factory overhead cost...
asked 6 minutes ago -
Two particles with charges +4e and -7e are
initially very far apart (effectively an infinite distance...
asked 17 minutes ago -
Holding all else constant, when teams face a binding roster
limit, the salary of players is...
asked 22 minutes ago -
1. When can parametric and non-parametric statistical tests be
used?
A. Parametric?
The independent variable is...
asked 30 minutes ago -
How can bacteria resist killing from cationic antimicrobial
peptides (CAMPs)? Choose all that apply. a. Use...
asked 37 minutes ago -
As an economic term, what is the definition of :Technological
Trends? Please try and keep the...
asked 38 minutes ago -
Labor demand will be less elastic in those labor markets in
which:
A.
the price elasticity...
asked 39 minutes ago -
5 situations are listed below and 8 reduction chemicals are
listed A-H below, match the letters...
asked 45 minutes ago -
1. If more spouses decide to quit their jobs to stay home with
their young children...
asked 48 minutes ago -
Please use algebraic manipulation to prove the following
statement:
x'y'z' + x'yz' + x'yz + xyz'...
asked 49 minutes ago