Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent c...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2014, at a purchase price that was $300,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $200,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity...
c. Complete the consolidating entries according to the C-E-A-D-I sequence and complete the consolidation worksheet. Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses and Dividends. Consolidation Worksheet Income statement Parent Subsidiary Debit Credit Consolidated Sales $3,045,000 $560,000 [Isales] Answer Answer Cost of goods sold (2,135,000) (336,000) [Icogs] Answer Answer [Icogs] Answer Answer [Isales] Gross profit 910,000 224,000 Answer Equity income 10,500 - [C] Answer Answer Operating expenses (581,000) (140,000) [D] Answer Answer...
Consolidation spreadsheet for continuous sale of inventory-Equity method Assume a parent company acquired a subsidiary on January 1. 2016. The purchase price was S600,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, and that excess was assigned to the following AAP assets: The AAP assets with a definite useful life have been amortized as part of the parent's equity method accounting. The Goodwill asset has been tested annually for impairment, and has not been found to...
Prepare consolidation spreadsheet for intercompany sale of equipment - Equity method Assume a parent company acquired its subsidiary on January 1, 2015, at a purchase price that was $222,000 in excess of the book value of the subsidiary’s Stockholders’ Equity on the acquisition date. Of that excess, $132,000 was assigned to a Customer List that is being amortized over a 10-year period. The remaining $90,000 was assigned to Goodwill. In January of 2018, the wholly owned subsidiary sold Equipment to...
Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary’s Stockholders’ Equity on the acquisition date. The parent assigned the excess to the following [A] assets: [A] Asset Initial Fair Value Useful Life (years) [A] Asset Initial Fair Value Useful Life...
Prepare consolidation spreadsheet for intercompany sale of land - Equity Method Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $180,000 was assigned to an unrecorded patent owned by the subsidiary that is being amortized over a 10 year period. The [A] Patent asset has been amortized as part of the parent's equity...
Use negative signs with answers in the Consolidated column for Cost of goods sold, Operating expenses and Dividends. Parent Subsidiary Subsidiary Balance sheet $800,000 Assets (480,000) Cash 320,000 Accounts receivable Parent Income statement Sales $4,350,000 Cost of goods sold (3,050,000) Gross profit 1,300,000 Income (loss) from subsidiary 15,000 Operating expenses (830,000) Net income $485,000 Statement of retained earnings BOY retained earnings | $2,000,000 Net income 485,000 Dividends (125,000) Ending retained earnings $2,360,000 - Inventory (200,000) Equity investment $120,000 Property, plant...
200 Chapter 41 Consolidated PROBLEMS base price was date, and that was LO 19. Consolidation spreadsheet for continuous cale of inventory-Equity method Assume a parent company acquired a subsidiary on January 1, 2016. The purchas i n excess of the subsidiary's book value of Stockholders' Equity on the acquisition was assigned to the following AAP assets: X Original Amount Original Use Line . $120.000 210.000 150.000 120,000 $600,000 AAP Asset Property, plant and equipment (PPE), net . Customer list... Royalty...
Inferring consolidation entries from consolidated financial statements—Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,312,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original Amount Original Useful Life Property, plant and equipment (PPE), net $300,000 20 years Patent 432,000 12 years Goodwill 580,000 Indefinite $1,312,000 The parent company uses the cost method of...
Prepare consolidation spreadsheet for intercompany sale of equipment- Equity Method Assume a parent company acquired its subsidiary on January 1, 2015, at a purchase price that was $222,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $132,000 was assigned to a Customer List that is being amortized over a 10-year period. The remaining $90,000 was assigned to Goodwill. In January of 2018, the wholly owned subsidiary sold Equipment to the...