On January 1, 2000 Tiger Company acquired all of the stock of Rebel Company at book...
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On January 1, 2000 Tiger Company acquired all of the stock of Rebel Company at book value |
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Tiger Company accounts for its investment of Rebel Company using the initial value method and Rebel pays no dividends |
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On December 1, 2018 Tiger Company sold merchandise (inventory) to Rebel Company on credit |
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Tiger had purchased the merchandise for $400,000 and sold it to Rebel for $800,000. |
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at the end of the year, Rebel had not sold any of the Tiger merchandise and did not pay off their receivable |
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In 2019 Rebel sold 75% of the merchandise acquired from Tiger to Lion Company for $1,000,000 |
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In 2020 Rebel sold the remaining merchandise for $400,000 |
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REQUIRED: |
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A) MAKE THE JOURNAL ENTRY FOR TIGER WHEN IT SELLS THE MERCHANDISE TO REBEL |
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TIGER USES PERPETUAL INVENTORY METHOD |
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B) MAKE THE JOURNAL ENTRY REBEL MAKES WHEN IT BUYS THE MERCHANDISE FROM TIGER |
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REBEL ALSO USES PERPETUAL INVENTORY |
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C) MAKE THE NECESSARY WORKSHEET ENTRIES IN 2018 |
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d) in 2018 Tiger reported unconsolidated income of $400,000 and Rebel reported income of $80,000 what |
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is consolidated income? |
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e) make the necessary worksheet entry in 2019 |
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f) in 2019 Tiger reported unconsolidated income of $400,000 and Rebel reported income of $80,000 what |
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is consolidated income? |
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g) make the necessary worksheet entry in 2020 |
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h) in 2020 Tiger reported unconsolidated income of $400,000 and Rebel reported income of $80,000 what |
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is consolidated income? |
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Homework Answers
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