P9-1 Indirect HoldingsIncome Allocation Schedule The affiliation structure of Polly Ltd. and its subsidiaries is as follows:
Question:
P9-1 Indirect Holdings—Income Allocation Schedule The affiliation structure of Polly Ltd. and its subsidiaries is as follows:
70%
50%
80%
30%
10%
Jolly Sally Wally Polly The incomes and dividends of the affiliates in 2014 are as follows (in thousands):
Polly Sally Jolly Wally Separate income $450 $250 $100 $50 Separate dividends $80 $40 $20 $10 ADDITIONAL INFORMATION 1. Ending balance of inventory at Jolly included a $10,000 profit from Sally.
2. Ending balance of inventory at Polly included a $10,000 profit from Wally.
3. Sally sold land at a gain of $15,000 in 2014 to Polly, who still held the land.
4. Sally sold land at a gain of $10,000 in 2014 to Wally, who sold it to a third party at the end of the year at a gain of $5,000.
REQuIRED: Prepare the income allocation schedule for Polly Ltd. and its affiliates.
Step by Step Answer:
Advanced Accounting
ISBN: 9781292214597
13th Global Edition
Authors: Joseph H. Anthony, Bruce Bettinghaus, Floyd A. Beams, Kenneth Smith