Emron Company owns a 100% interest in the common stock of the Dietz Company. On January...
Emron Company owns a 100% interest in the common stock of the Dietz Company. On January 1, 2016, Emron sold Dietz a fixed asset that Dietz will use over a 5-year period. The asset was sold at a $5,000 profit. In the consolidated statements, this profit will a. not be recorded. b. be recognized over 5 years. c. be recognized in the year of sale. d. be recognized when the asset is resold to outside parties at the end of its period of use.
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Emron Company owns a 100% interest in the common stock of the
Dietz Company. On January...
P Company owns 90% of the outstanding common stock of S Company. On January 1, 2015,...
P Company owns 90% of the outstanding common stock of S Company.
On January 1, 2015, S Company sold land to P Company for $566,500.
S Company originally purchased the land for $414,900.
On January 1, 2016, P Company sold the land purchased from S
Company to a company outside the affiliated group for $666,100.
Calculate the amount of gain on the sale of the land that is
recognized on the books of P Company in 2016.
EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common...
EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1, 2021, P Company sold the land purchased from S Company to a company outside the affiliated group for $700,000. Required: A. Calculate the amount of gain on the sale of the land that is recognized on...
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...
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...
Calculate controlling interest share and noncontrolling interest share of consolidated net income Pet Company owns 90 p...
Calculate controlling interest share and noncontrolling interest share of consolidated net income Pet Company owns 90 percent of the stock of Man Corporation and 70 percent of the stock of Nun Company. Man owns 70 percent of the stock of Oak Corporation and 10 percent of the stock of Nun Company. Nun Company owns 20 percent of the stock of Oak Corporation Separate incomes for the year ended December 31, 2016, are as follows: $130,000 $ 36,000 $ 56,000 18,000...
Facts: Assume that on January 1, Parent Company ("Parent Co") acquires 100% of the common stock...
Facts: Assume that on January 1, Parent Company ("Parent Co") acquires 100% of the common stock of Subsidiary Company ("Sub Co") for $800,000. On the acquisition date, Sub Co reports a book value of Stockholders' Equity of $320,000. Parent Co is willing to pay the purchase price because the subsidiary owns property, plant and equipment that are worth $150,000 more than the amount at which they are reported on Sub Co's books. In addition, Sub Co owns a customer list...
Problem 5-8 (LO 5-7) Dunn Corporation owns 100 percent of Grey Corporation's common stock. On January...
Problem 5-8 (LO 5-7) Dunn Corporation owns 100 percent of Grey Corporation's common stock. On January 2, 2017, Dunn sold to Grey $63,600 of machinery with a carrying amount of $47,750. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2017 and 2018 consolidated net income would be an increase (decrease) of Multiple Choice 2018 2017 $(12,680) 2017 $(15,850) 2018 $3,170 2017 $(12,680) 2018 $3,170 2018 2017 $ (15,850)
Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,...
Harper, Inc., acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2020, for $259,200 in cash. The book value of Kinman's net assets on that date was $465,000, although one of the company's buildings, with a $72,200 carrying amount, was actually worth $129,700. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $125,500. Kinman sold inventory with an original cost of $109,200 to...
On January 1, 2013, Price Company acquired an 80% interest in the common stock of Smith...
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1,...
Harper, Inc. acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2017, for $365,700 in cash. The book value of Kinman's net assets on that date was $760,000, although one of the company's buildings, with a $71,200 carrying amount, was actually worth $111,450. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $114,000. Kinman sold inventory with an original cost of $65,100 to...
P Company owns 90% of the outstanding common stock of S Company.
On January 1, 2015, S Company sold land to P Company for $566,500.
S Company originally purchased the land for $414,900.
On January 1, 2016, P Company sold the land purchased from S
Company to a company outside the affiliated group for $666,100.
Calculate the amount of gain on the sale of the land that is
recognized on the books of P Company in 2016.
EXERCISE 7-6 Calculating Gain on Sale LO 9 P Company owns 90% of the outstanding common stock of S Company. On January 1, 2020, S Company sold land to P Company for $600,000. S Company originally purchased the land for $400,000. On January 1, 2021, P Company sold the land purchased from S Company to a company outside the affiliated group for $700,000. Required: A. Calculate the amount of gain on the sale of the land that is recognized on...
Calculate controlling interest share and noncontrolling interest share of consolidated net income Pet Company owns 90 percent of the stock of Man Corporation and 70 percent of the stock of Nun Company. Man owns 70 percent of the stock of Oak Corporation and 10 percent of the stock of Nun Company. Nun Company owns 20 percent of the stock of Oak Corporation Separate incomes for the year ended December 31, 2016, are as follows: $130,000 $ 36,000 $ 56,000 18,000...
Facts: Assume that on January 1, Parent Company ("Parent Co") acquires 100% of the common stock of Subsidiary Company ("Sub Co") for $800,000. On the acquisition date, Sub Co reports a book value of Stockholders' Equity of $320,000. Parent Co is willing to pay the purchase price because the subsidiary owns property, plant and equipment that are worth $150,000 more than the amount at which they are reported on Sub Co's books. In addition, Sub Co owns a customer list...
Problem 5-8 (LO 5-7) Dunn Corporation owns 100 percent of Grey Corporation's common stock. On January 2, 2017, Dunn sold to Grey $63,600 of machinery with a carrying amount of $47,750. Grey is depreciating the acquired machinery over a five-year remaining life by the straight-line method. The net adjustments to compute 2017 and 2018 consolidated net income would be an increase (decrease) of Multiple Choice 2018 2017 $(12,680) 2017 $(15,850) 2018 $3,170 2017 $(12,680) 2018 $3,170 2018 2017 $ (15,850)
On January 1, 2013, Price Company acquired an 80% interest in
the common stock of Smith Company on the open market for $811,500,
the book value at that date.
On January 1, 2014, Price Company purchased new equipment for
$15,000 from Smith Company. The equipment cost $9,700 and had an
estimated life of five years as of January 1, 2014.
During 2015, Price Company had merchandise sales to Smith Company
of $96,200; the merchandise was priced at 25% above Price...
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