Do not give image format The financial statements of Post Company and Stamp Company on December 31, Year 5, were as follows:AssetsBALANCE SHEETSCashAccounts receivableInventoriesEquipment (net)Buildings (net)Investment in Stamp (at cost)Liabilities and Shareholders' EquityCurrent liabilitiesLong-term liabilitiesCommon sharesRetained earningsSales revenueOther revenuesCost of goods soldSelling and administrative expensesOther expensesIncome tax expenseNet incomeRetained earnings, beginning balance$Dividends declaredRetained earnings, ending balancePost50,000250,000STATEMENTS OF INCOME AND RETAINED EARNINGSPost$3,500,000 $300,0003,800,0001,700,000300,000200,000300,0004,000,0003,000,0005,600,000$12,900,000$3,000,0006,150,000 2,500,0002,600,000500,000850,000$12,900,000Stamp10,000100,000520,000$300,000 $ 170,0001,100,000500,0001,860,000$3,630,000-$3,630,000Stamp900,00030,000930,000330,000100,000150,00070,000$2,500,000650,0001,300,000280,000$4,500,000 $ 1,600,0005,800,00018,800,000200,000$5,600,00020,000$ 1,860,000 Additional InformationPost owns 70 percent of Stamp and carries its investment in Stamp on its books by the cost method.During Year 4, Post sold Stamp $100,000 worth of merchandise, of which $60,000 was resold by Stamp in the year. During Year 5, Post had sales of $200,000 to Stamp, ofwhich 40 percent was resold by Stamp. Intercompany sales are priced to provide Post with a gross profit of 30 percent of the sales price.On December 31, Year 4, Post had in its inventories $150,000 of merchandise purchased from Stamp during Year 4. On December 31, Year 5, Post had in its ending inventories$100,000 of merchandise that had resulted from purchases of $350,000 from Stamp during Year 5. Intercompany sales are priced to provide Stamp with a gross profit of 60percent of the sale price.Both companies are taxed at 25 percent.Which of the following would appear on Post's consolidated balance sheet on December 31, Year 5, for non-controlling interest?Multiple Choice$721,500$714,750$694,500$708,000

The term minority interest, or non-controlling interest, describes the part of equity ownership in a…

The financial statements of Post Company and Stamp Company on December 31, Year 5, were as foll Assets BALANCE SHEETS Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) $ Post 50,000 250,000 $ Stamp 10,000 100,000 520,000 3,000,000 6,150,000 2,500,000 2,600,000 500,000 850,000

The financial statements of Post Company and Stamp Company on December 31, Year 5, were as foll Assets BALANCE SHEETS Cash Accounts receivable Inventories Equipment (net) Buildings (net) Investment in Stamp (at cost) $ Post 50,000 250,000 $ Stamp 10,000 100,000 520,000 3,000,000 6,150,000 2,500,000 2,600,000 500,000 850,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 2MC: A prior period adjustment should be reflected, net of applicable income taxes, in the financial...

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