Homework Answers
ANSWER:
a. Schedule to compute PONS's equity in net income of STAR
Sales = $4000000
Cost of goods sold = $2500000
Other expense = $600000
Depreciation =$ 100000 ($800000/8 = 100000 per year)
Goodwill Amortisation = $250000
Net Income = $550000
Share of PONS = $440000
NCI share = $110000
b. Condensed consolidated income statement
Add Answer to:
E6.11 Help Please!! E6.11 Consolidated Income Statement, Intercompany Transactions Condensed income state- ments for...
E6.11 Consolidated Income Statement, Intercompany Transactions Condensed income state ments for Pon and its 80 percent-owned...
E6.11 Consolidated Income Statement, Intercompany Transactions Condensed income state ments for Pon and its 80 percent-owned subsidiary, Star, appear below Condensed Income Statements Pon Star (600,000) Intercompany sales are S1,500,000. Unconfirmed intercompany profit in Pon's beginning inventory is $100,000, and unconfirmed intercompany profit in Pon's ending inventory is $120,000. Unconfirmed intercompany profit in Star's beginning inventory is $90,000, and unconfirmed intercompany profit in Star's ending inventory is $50,000. At the date of combination four years ago, previously unrecorded identifiable intangibles...
Consolidation Working Paper, Noncontrolling Interest, Intercompany Inventory Transactions Peninsula Industries and Seaport Company, an 85 percent...
Consolidation Working Paper, Noncontrolling Interest, Intercompany Inventory Transactions Peninsula Industries and Seaport Company, an 85 percent owned subsidiary, engage in extensive intercompany transactions involving raw material,component parts,and completed products. Peninsula acquired its interest in Seaport several years ago, at a cost of $24,575,000. At that time, Seaport's book value was $1,500,000 and the fair value of the noncontrolling interest in Seaport was $2,925,000. The excess of acquisition cost over book value was attributed to previously unrecorded indefinite-lived intangibles, valued at...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $300,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
Preparing a consolidated income statement—Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory...
Preparing a consolidated income statement—Cost method
with noncontrolling interest, AAP and upstream and downstream
intercompany inventory profits
A parent company purchased a 70% controlling interest in its
subsidiary several years ago. The aggregate fair value of the
controlling and noncontrolling interest was $300,000 in excess of
the subsidiary’s Stockholders’ Equity on the acquisition date. This
excess was assigned to a building that was estimated to be
undervalued by $180,000 and to an unrecorded Trademark valued at
$120,000. The building asset...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $460,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $300,000 and to an unrecorded Customer List valued at $160,000. The building...
Consolidated Net Income The following information relates to Caleres Inc. and its 51 percent-owned subsidiary, B&H...
Consolidated Net Income The following information relates to Caleres Inc. and its 51 percent-owned subsidiary, B&H Footwear, for fiscal 2019. Caleres Inc.'s net income from its own operations 50,000 B&H Footwear's net income from its own operations 20,000 Dividends paid by B&H Footwear 8,000 Acquisition date overvaluation of inventory sold in fiscal 2019 900 Reduction in depreciation expense on equipment overvalued at acquisition date 300 Amortization of discount on long-term debt created at acquisition date 100 Impairment loss on in-process...
Problem 3 On January 3, 2016, Perpetual Industries acquired 80% of Sawyer Corporations voting stock. Total goodwill of...
Problem 3 On January 3, 2016, Perpetual Industries acquired 80% of Sawyer Corporations voting stock. Total goodwill of $1,000,000 was recognized at the date of acquisition, allocated $850,000 to the controlling interest and $150,000 to the noncontrolling interest. Sawyer's reported net assets and liabilities had a book value that approximated fair value at the date of acquisition, but it had previously unreported customer lists (5years life SL) valued at $500,000. It is now December 31, 2019, for years after the...
E6.14 Consolidation Working Paper Eliminations, Intercompany Merchandise Sales. Noncon- trolling Interest Paymore Shoxes cuired 80 percent...
E6.14 Consolidation Working Paper Eliminations, Intercompany Merchandise Sales. Noncon- trolling Interest Paymore Shoxes cuired 80 percent of the voting stock of Spire Footwear on Feb. ruary 1, 2017, for S21 million. The fair value of the noncontrolling interest at the acquisition date was 53 million. The excess of Spire's fair value over its S4 million book value was attributed to limited life identifiable intangible assets ($5 million, 5-year life) and goodwill Paymore's fiscal year ends January 31. As of February...
Peel Company owns 90% of the common stock of Seacore Company. Seacore Company sells merchandise to...
Peel Company owns 90% of the common stock of Seacore Company. Seacore Company sells merchandise to Peel Company at 20% above cost. During 2014 and 2015, such sales amounted to $451,400 and $482,600, respectively. At the end of each year, Peel Company had in its inventory one-fourth of the goods purchased from Seacore Company during that year. Peel Company reported $309,400 in net income from its independent operations in 2014 and 2015. Seacore Company reported net income of $117,600 in...
Question 2Partially correctMark 5.00 out of 15.00 Not flaggedFlag question Question text Preparing a consolidated income...
Question 2Partially correctMark 5.00 out of 15.00 Not flaggedFlag question Question text Preparing a consolidated income statement—Equity method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $350,000 in excess of the subsidiary’s Stockholders’ Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by...
E6.11 Consolidated Income Statement, Intercompany Transactions Condensed income state ments for Pon and its 80 percent-owned subsidiary, Star, appear below Condensed Income Statements Pon Star (600,000) Intercompany sales are S1,500,000. Unconfirmed intercompany profit in Pon's beginning inventory is $100,000, and unconfirmed intercompany profit in Pon's ending inventory is $120,000. Unconfirmed intercompany profit in Star's beginning inventory is $90,000, and unconfirmed intercompany profit in Star's ending inventory is $50,000. At the date of combination four years ago, previously unrecorded identifiable intangibles...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $300,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
Preparing a consolidated income statement—Cost method
with noncontrolling interest, AAP and upstream and downstream
intercompany inventory profits
A parent company purchased a 70% controlling interest in its
subsidiary several years ago. The aggregate fair value of the
controlling and noncontrolling interest was $300,000 in excess of
the subsidiary’s Stockholders’ Equity on the acquisition date. This
excess was assigned to a building that was estimated to be
undervalued by $180,000 and to an unrecorded Trademark valued at
$120,000. The building asset...
Preparing a consolidated income statement Equity method with noncontrolling interest, AAP and upstream intercompany depreciable asset profits A parent company purchased an 80% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $460,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $300,000 and to an unrecorded Customer List valued at $160,000. The building...
Problem 3 On January 3, 2016, Perpetual Industries acquired 80% of Sawyer Corporations voting stock. Total goodwill of $1,000,000 was recognized at the date of acquisition, allocated $850,000 to the controlling interest and $150,000 to the noncontrolling interest. Sawyer's reported net assets and liabilities had a book value that approximated fair value at the date of acquisition, but it had previously unreported customer lists (5years life SL) valued at $500,000. It is now December 31, 2019, for years after the...
E6.14 Consolidation Working Paper Eliminations, Intercompany Merchandise Sales. Noncon- trolling Interest Paymore Shoxes cuired 80 percent of the voting stock of Spire Footwear on Feb. ruary 1, 2017, for S21 million. The fair value of the noncontrolling interest at the acquisition date was 53 million. The excess of Spire's fair value over its S4 million book value was attributed to limited life identifiable intangible assets ($5 million, 5-year life) and goodwill Paymore's fiscal year ends January 31. As of February...
Peel Company owns 90% of the common stock of Seacore Company. Seacore Company sells merchandise to Peel Company at 20% above cost. During 2014 and 2015, such sales amounted to $451,400 and $482,600, respectively. At the end of each year, Peel Company had in its inventory one-fourth of the goods purchased from Seacore Company during that year. Peel Company reported $309,400 in net income from its independent operations in 2014 and 2015. Seacore Company reported net income of $117,600 in...
Most questions answered within 3 hours.
-
1-The Electrons in a beam are moving at 2.7×108 m/s in an
electric field of 15000...
asked 4 minutes ago -
A gas tank is a vertical cylinder. It has a radius of 1m, a
height of...
asked 31 minutes ago -
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 1 hour ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 1 hour ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 2 hours ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 3 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 3 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 3 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 4 hours ago -
If Canada suffered from "fundamental disequilibrium," and its
government choose not to devalue its currency, a...
asked 4 hours ago -
4. How many input & output Key Value Pairs are passed into,
and emitted out of...
asked 4 hours ago -
Why would your heart not function well if constructed of
skeletal muscle? What is the particular...
asked 4 hours ago