Please answer retained earnings
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Please answer retained earnings
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- Determining ending consolidated balances in the second year following the acquisition—Cost methodAssume a parent company acquired a subsidiary on January 1, 2015, for $2,236,000. The purchase price was $1,116,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $652,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows:Preparing the consolidation journal entries for sale of depreciable assets-Equity method Assume that on January 1, 2011, a wholly owned subsidiary sells to its parent, for a sale price of $132,000, equipment that originally cost $156,000 The subsidiary originally purchased the equipment on January 1, 2007, and depreciated the equipment assuming a 10-year useful life (straight-line with no salvage value. The parent has adopted the subsidiary's depreciation policy and depreciates the equipment over the remaining useful life of 6 years. The parent uses the full equity method to account for its Equity Investment a. Compute the annual depreciation expense for the subsidiary (pre-intercompany sale) and the parent (poss-intercompany sale) Annual depreciation expense-subsidiary $156,000 Annual depreciation expense-parent $ 122,000x b. Compute the pre-consolidation Gain on Sale recognized by the subsidiary during 2011. $ 62,400 x c. Prepare the required consolidation journal entry in 2011…i just need the answer PLZ Determining ending consolidated balances in the second year following the acquisition—Cost method Assume a parent company acquired a subsidiary on January 1, 2015, for $2,086,000. The purchase price was $966,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $502,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows: Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales $8,318,750 $1,890,000 Assets Cost of goods sold (5,989,500) (1,089,000) Cash $1,567,280…
- Preparing the consolidation entries for sale of depreciable assets-Equity method Assume that on January 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price of $243,000, equipment that originally cost $276,000. The parent originally purchased the equipment on January 1, 2012, and depreciated the equipment assuming a 10-year useful life (straight-line with no salvage value). The subsidiary has adopted the parent's depreciation policy and depreciates the equipment over the remaining useful life of 6 years. The parent uses the equity method to account for its Equity Investment. a. Compute the annual pre-consolidation depreciation expense for the subsidiary (postintercompany sale) and the parent (pre-intercompany sale). Subsidiary-depreciation $ 40,500 Parent-depreciations 27,600 b. Compute the pre-consolidation Gain on Sale recognized by the parent during 2016. $ 77,400 c. Prepare the required consolidation entry in 2016 (assume a full year of depreciation) Debit…SUBSEQUENT TO DATE OF ACQUISITION CHAPTER 3: CONSOLIDATION- 21. Patriotism Company purchased 70% of Strength Company on January 2, 2022 for P420,000. At that date Strength had inventory and plant assets with market values greater than book values in the amount of P50,000 and P90,000, respectively. The inventory and plant assets were assigned to have a remaining life of six months and five years, respectively. Strength Company has 2022 income and dividends of P160,000 and P60,000, respectively and 2023 income and dividends of P210,000 and P80,000, respectively. The balance of non-controlling interest account on December 31. 180,000 NU beg (420K 787. x30%.) 2023 must be: a. P223,200 b. P276,000 P169,200 с. d. P136,800 22. Jenny Company acquired 80% of the equity share capital of SmithConsolidation spreadsheet for continuous sale of inventory - Equity methodAssume that a parent company acquired a subsidiary on January 1, 2013. The purchase price was $500,000 million 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: AAP Asset OriginalAmount Original UsefulLife (years) Property, plant and equipment (PPE), net $100,000 20 Customer list 175,000 10 Royalty agreement 125,000 10 Goodwill 100,000 indefinite $500,000 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 be impaired. Assume that the parent company sells inventory to its wholly owned subsidiary. The subsidiary, ultimately, sells the inventory to customers outside of the consolidated group. You have compiled the following data for the years ending…
- Preparing the [I] consolidation entries for sale of depreciable assets-Equity method Assume that on January 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price of $243,000, equipment that originally cost $276,000. The parent originally purchased the equipment on January 1, 2012, and depreciated the equipment assuming a 10-year useful life (straight-line with no salvage value). The subsidiary has adopted the parent's depreciation policy and depreciates the equipment over the remaining useful life of 6 years. The parent uses the equity method to account for its Equity Investment. a. Compute the annual pre-consolidation depreciation expense for the subsidiary (postintercompany sale) and the parent (pre-intercompany sale). Subsidiary-depreciation $ 0 Parent depreciation $ 0 b. Compute the pre-consolidation Gain on Sale recognized by the parent during 2016. $ 0 c. Prepare the required [I] consolidation entry in 2016 (assume a full year of depreciation). Description…Preparing the [I] consolidation journal entries for sale of depreciable assets - Equity methodAssume that on January 1, 2011, a wholly owned subsidiary sells to its parent, for a sale price of $126,000, equipment that originally cost $148,000. The subsidiary originally purchased the equipment on January 1, 2007, and depreciated the equipment assuming a 10-year useful life (straight-line with no salvage value). The parent has adopted the subsidiary's depreciation policy and depreciates the equipment over the remaining useful life of 6 years. The parent uses the full equity method to account for its Equity Investment. a. Compute the annual depreciation expense for the subsidiary (pre-intercompany sale) and the parent (post-intercompany sale). Annual depreciation expense-subsidiary Answer Annual depreciation expense-parent Answer b. Compute the pre-consolidation Gain on Sale recognized by the subsidiary during 2011. $Answer c. Prepare the required [I] consolidation journal…Pre-consolidation bookkeeping, downstream intercompany sales, profits in ending inventory-Equity method Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parent's and subsidiary's "stand alone" pre-consolidation income statements for the year ending December 31, 2013, prior to any investment bookkeeping or intercompany adjustments: Parent Subsidiary Revenues $4,200,000 $2,850,000 Cost of goods sold (2,730,000) (1,710,000) Gross profit 1,470,000 1,140,000 Selling general & administrative expenses (975,000) (757,500) Net income $495,000 $382,500 On January 1, 2013, neither company held any inventories purchased from the other affiliate. All of the sales made by either company have the same gross margin regardless of whether they are made to affiliates or non-affiliates. Assume that during the year ended December 31, 2013, the parent sold to the subsidiary $250,000 of merchandise. At December 31, 2013, the…
- Parent company acquired a subsidiary on January 1, 2015, for $1,936,000. The Purchase price was $816,200 in excess of the subsidiary's $1,119,800 book value of Stockholders' Equity. $352,000 was assigned to PPE with a remaining useful life of 10 years. $464,200 was assigned to Goodwill. On acquisition date, subsidiary reported retained earnings of $847,550. The parent uses the Cost Method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016. List the consolidated balances.FC en gle om XY Preparing the [I] consolidation journal entries for sale of depreciable assets - Equity method Assume on january 1, 2020, a wholly owned subsidiary sells to its parent, for a sale price of $88.000, equipment that originally cost $120,000. The subsidiary originally purchased the equipment on January 1, 2016, and depreciated the equipment assuming a 12-year useful life (straight-line with no salvage value). The parent has adopted the subsidiary's depreciation policy and depreciates the equipment over the remaining useful life of 8 years. The parent uses the equity method to account for its Equity Investment. a. Compute the annual pre-consolidation depreciation expense for the subsidiary (pre-intercompany sale) and the parent (post-intercompany sale). Annual depreciation expense-subsidiary 5 Annual depreciation expense-parent 5 b. Compute the pre-consolidation Gain on Sale recognized by the subsidiary during 2020. $0 x 0x 0x c. Prepare the required [ consolidation journal…Pre-consolidation bookkeeping, upstream intercompany sales, profits in ending inventory - Cost method Assume a parent company owns a 100% controlling interest in its long-held subsidiary. The following excerpts are from the parent’s and subsidiary’s “stand alone” pre-consolidation income statements for the year ending December 31, 2019, prior to any investment bookkeeping or intercompany adjustments: Parent Subsidiary Revenues $4,000,000 $2,500,000 Cost of goods sold (2,800,000) (1,500,000) Gross profit 1,200,000 1,000,000 Selling general & administrative expenses (780,000) (606,000) Net income $420,000 $394,000 On January 1, 2019, neither company held any inventories purchased from the other affiliate. All of the sales made by either company have the same gross margin regardless of whether they are made to affiliates or non-affiliates. The subsidiary declared and paid $200,000 of dividends during 2019. Assume during the year ended December 31, 2019, the subsidiary sold…