Palmer Corporation acquired 70 percent of Krown Corporation’s ownership on January 1, 20X8, for $148,400. At...
|
Palmer Corporation acquired 70 percent of Krown Corporation’s ownership on January 1, 20X8, for $148,400. At that date, Krown reported capital stock outstanding of $126,000 and retained earnings of $86,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Krown. During 20X8, Krown reported net income of $33,600 and comprehensive income of $39,600 and paid dividends of $28,600. |
| Required: | |
| a. |
Present all equity-method entries that Palmer would have recorded in accounting for its investment in Krown during 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1.Record the initial investment in Krown Corp 2. Record Palmer Corp.'s 70% share of Krown Corp.'s 20X8 income. 3. Record Palmer Corp.'s 70% share of Krown Corp.'s 20X8 dividend. 4. Record Palmer Corp.'s proportionate share of OCI from Krown Corp. |
| b. |
Present all consolidation entries needed at December 31, 20X8, to prepare a complete set of consolidated financial statements for Palmer Corporation and its subsidiary. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the basic consolidation entry. 2. Record the Other Comprehensive Income entry. |
|||
Homework Answers
Add Answer to:
Palmer Corporation acquired 70 percent of Krown Corporation’s
ownership on January 1, 20X8, for $148,400. At...
A. Purse Corporation acquired 70 percent of Scarf Corporation's ownership on January 1, 20X8, for $148,400....
A. Purse Corporation acquired 70 percent of Scarf Corporation's ownership on January 1, 20X8, for $148,400. At that date, Scarf reported capital stock outstanding of $126,000 and retained earnings of $86,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Scarf. During 20X8, Scarf reported net income of $33,600 and comprehensive income of $39,600 and paid dividends of $28,600. Required: a. Present all equity-method entries that Purse would have recorded in...
Purse Corporation acquired 70 percent of Scarf Corporation’s ownership on January 1, 20X8, for $145,600. At...
Purse Corporation acquired 70 percent of Scarf Corporation’s ownership on January 1, 20X8, for $145,600. At that date, Scarf reported capital stock outstanding of $124,000 and retained earnings of $84,000, and the fair value of the noncontrolling interest was equal to 30 percent of the book value of Scarf. During 20X8, Scarf reported net income of $32,400 and comprehensive income of $38,400 and paid dividends of $27,400. Required: 1. Present all equity-method entries that Purse would have recorded in accounting...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20x8, for $158,000. At...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20x8, for $158,000. At that date, the fair value of Saver's buildings and equipment was $32,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20x8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $5,500. Trial balance data for Price and Saver...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $122,400. At...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $122,400. At that date, the fair value of Saver's buildings and equipment was $16,000 more than the book value. Accumulated depreciation on this date was $19,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500....
Callas Corporation paid $380,000 to acquire 40 percent ownership of Thinbill Company on January 1, 20X9....
Callas Corporation paid $380,000 to acquire 40 percent ownership
of Thinbill Company on January 1, 20X9. The amount paid was equal
to Thinbill’s underlying book value. During 20X9, Thinbill reported
operating income of $45,000 and income of $20,000 from gains on
derivative contracts that were designated as cash flow hedges, so
these gains were reported in Other Comprehensive Income (OCI).
Thinbill paid dividends of $9,000 on December 10, 20X9.
Required:
a. Give all journal entries that Callas Corporation recorded in...
Ravine Corporation purchased 40 percent ownership of Valley Industries for $116,400 on January 1, 20X6, when...
Ravine Corporation purchased 40 percent ownership of Valley Industries for $116,400 on January 1, 20X6, when Valley had capital stock of $246,000 and retained earnings of $45,000. The following data were reported by the companies for the years 20X6 through 20X9: Dividends Declared Operating Income, Net Income, Valley Year Ravine Corporation Valley Industries Ravine 20X6 20X7 20X8 20X9 $149,000 94,000 224,000 169,000 $41,000 61,000 10,000 51,000 $ 74,000 $31,000 74,000 94,000 104,000 51,000 40,000 31,000 Required: a. What net income...
please help! On 1 November 20X8, Porter Company acquired the following FVTPL investments: • Minto Corp.-2,600...
please help!
On 1 November 20X8, Porter Company acquired the following FVTPL investments: • Minto Corp.-2,600 common shares at $20 cash per share • Pugwash Corp.-600 preferred shares at $30 cash per share The annual reporting period ends 31 December. Quoted fair values on 31 December 20X8 were as follows: • Minto Corporation common, $17 • Pugwash Corporation preferred, $34 The following information relates to 20X9: 2 March 1 October 31 December Received cash dividends per share as follows: Minto...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $109,600. At...
Price Corporation acquired 100 percent ownership of Saver
Company on January 1, 20X8, for $109,600. At that date, the fair
value of Saver's buildings and equipment was $15,000 more than the
book value. Accumulated depreciation on this date was $15,000.
Buildings and equipment are depreciated on a 10-year basis.
Although goodwill is not amortized, Price’s management concluded at
December 31, 20X8, that goodwill involved in its acquisition of
Saver shares had been impaired and the correct carrying value was
$2,600....
Please show formulas!! The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned...
Please show formulas!!
The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company contained the following summarized amounts: PINT CORPORATION AND SALOON COMPANY Balance Sheets December 31, 20x8 Pint Saloon Corporation Company Assets Cash & Receivables $113,000 $ 48,000 Inventory 166,000 109,000 Buildings & Equipment (net) 312,000 289,000 Investment in Saloon Company 224,500 Total Assets $815,500 $446,000 Liabilities & Equity Accounts Payable $117,500 $ 67,000 Common Stock 182,000 142,000 Retained Earnings 516,000 237,000 Total...
Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $60,000, at...
Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $60,000, at which time Scope Products reported retained earnings of $12,000 and capital stock outstanding of $29,000. The differential was attributable to patents with a life of four years. Income and dividends of Scope Products were Year 20x6 20x7 20X8 Net Income $23,000 31,000 39,000 Dividends $ 8,000 10,000 10,000 Required: 1. Prepare the equity method entries that Pistol should record to account for this investment...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20x8, for $158,000. At that date, the fair value of Saver's buildings and equipment was $32,000 more than the book value. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20x8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $5,500. Trial balance data for Price and Saver...
Price Corporation acquired 100 percent ownership of Saver Company on January 1, 20X8, for $122,400. At that date, the fair value of Saver's buildings and equipment was $16,000 more than the book value. Accumulated depreciation on this date was $19,000. Buildings and equipment are depreciated on a 10-year basis. Although goodwill is not amortized, Price's management concluded at December 31, 20X8, that goodwill involved in its acquisition of Saver shares had been impaired and the correct carrying value was $2,500....
Callas Corporation paid $380,000 to acquire 40 percent ownership
of Thinbill Company on January 1, 20X9. The amount paid was equal
to Thinbill’s underlying book value. During 20X9, Thinbill reported
operating income of $45,000 and income of $20,000 from gains on
derivative contracts that were designated as cash flow hedges, so
these gains were reported in Other Comprehensive Income (OCI).
Thinbill paid dividends of $9,000 on December 10, 20X9.
Required:
a. Give all journal entries that Callas Corporation recorded in...
Ravine Corporation purchased 40 percent ownership of Valley Industries for $116,400 on January 1, 20X6, when Valley had capital stock of $246,000 and retained earnings of $45,000. The following data were reported by the companies for the years 20X6 through 20X9: Dividends Declared Operating Income, Net Income, Valley Year Ravine Corporation Valley Industries Ravine 20X6 20X7 20X8 20X9 $149,000 94,000 224,000 169,000 $41,000 61,000 10,000 51,000 $ 74,000 $31,000 74,000 94,000 104,000 51,000 40,000 31,000 Required: a. What net income...
please help!
On 1 November 20X8, Porter Company acquired the following FVTPL investments: • Minto Corp.-2,600 common shares at $20 cash per share • Pugwash Corp.-600 preferred shares at $30 cash per share The annual reporting period ends 31 December. Quoted fair values on 31 December 20X8 were as follows: • Minto Corporation common, $17 • Pugwash Corporation preferred, $34 The following information relates to 20X9: 2 March 1 October 31 December Received cash dividends per share as follows: Minto...
Price Corporation acquired 100 percent ownership of Saver
Company on January 1, 20X8, for $109,600. At that date, the fair
value of Saver's buildings and equipment was $15,000 more than the
book value. Accumulated depreciation on this date was $15,000.
Buildings and equipment are depreciated on a 10-year basis.
Although goodwill is not amortized, Price’s management concluded at
December 31, 20X8, that goodwill involved in its acquisition of
Saver shares had been impaired and the correct carrying value was
$2,600....
Please show formulas!!
The December 31, 20X8, balance sheets for Pint Corporation and its 70 percent-owned subsidiary Saloon Company contained the following summarized amounts: PINT CORPORATION AND SALOON COMPANY Balance Sheets December 31, 20x8 Pint Saloon Corporation Company Assets Cash & Receivables $113,000 $ 48,000 Inventory 166,000 109,000 Buildings & Equipment (net) 312,000 289,000 Investment in Saloon Company 224,500 Total Assets $815,500 $446,000 Liabilities & Equity Accounts Payable $117,500 $ 67,000 Common Stock 182,000 142,000 Retained Earnings 516,000 237,000 Total...
Pistol Corporation purchased 100 percent ownership of Scope Products on January 1, 20X6, for $60,000, at which time Scope Products reported retained earnings of $12,000 and capital stock outstanding of $29,000. The differential was attributable to patents with a life of four years. Income and dividends of Scope Products were Year 20x6 20x7 20X8 Net Income $23,000 31,000 39,000 Dividends $ 8,000 10,000 10,000 Required: 1. Prepare the equity method entries that Pistol should record to account for this investment...
Most questions answered within 3 hours.
-
Would You expect the analysis produced by the Legislative
Analyst’s Office to be more or less...
asked 8 minutes ago -
How configuring websites to use a common NFS share could
strengthen business continuity efforts
asked 9 minutes ago -
Arrange the following aqueous solutions in order of increasing
boiling point: 0.25 m NaCl (sodium chloride)...
asked 9 minutes ago -
calculate the mass of forsterite (Mg2SiO4) that contains a
million (1.00•10^6) oxygen
asked 33 minutes ago -
A heat engine has an efficiency of 0.48. Initially,
the engine performs net work W per...
asked 22 minutes ago -
identify the effect on the financial statement on the
following senarios:
b) the clients business mainly...
asked 19 minutes ago -
Whenever two Apollo astronauts were on the surface of the Moon,
a third astronaut orbited the...
asked 29 minutes ago -
Suppose that Marriott’s production process is characterized by
constant returns to scale at all output levels....
asked 29 minutes ago -
If a customer places a buy order for one millisecond only on an
electronic limit order...
asked 37 minutes ago -
An aqueous solution of perchloric acid is
standardized by titration with a 0.101 M solution
of...
asked 47 minutes ago -
Huckster Corporation purchased land on January 1, 20X1, for
$24,000. On June 10, 20X4, it sold...
asked 44 minutes ago -
A 2400-kg airplane pulls two gliders, the first of mass 330 kg
and the second of...
asked 56 minutes ago