Question
1. Matador Co. obtained all of the common stock of Tampa Co. on January 1, 2021. As of that date, Tampa had the following trial
1. Matador Co. obtained all of the common stock of Tampa Co. on January 1, 2021. As of that date, Tampa had the following trial balance: Debit Credit Accounts payable $ 60,000Accounts receivable $ 50,000Additional paid-in capital 60,000Buildings net (10-year life) 140,000Cash and short-term investments 70,000Common stock 300,000Equipment net (8-year life) 240,000Inventory 110,000Land 90,000Long-term liabilities (mature 12/31/25) 180,000Retained earnings, 1/1/21 120,000Supplies 20,000 Totals 20,000 300,000 During 2021, Tampa reported net income of $96,000 while paying dividends of $12,000. During 2022, Tampa reported net income of $132,000 while paying dividends of $36,000. Assume that Matador Co. acquired the common stock of Tampa Co. for $588,000 in cash. As of January 1, 2021, Tampas land had a fair market value of $102,000, its buildings were valued at $188,000, and its equipment was appraised at $216,000. Any additional excess cost was attributable to a trademark with a ten-year life. Matador decided to use the equity method for this investment. Required: A. Prepare ALL consolidation worksheet entries for December 31, 2021. B. Prepare ALL consolidation worksheet entries for December 31, 2022. Answer: Calculation:
why do you Amortize the building over 20 year whereas it says 10 year .please explain , also is this answer all the questions from part A & B
Prepare ALL consolidation worksheet entries for December 31, 2021.
Prepare ALL consolidation worksheet entries for December 31, 2022.
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