2. Bryan acquires 100% of the shares of Ruland on January 1, 2020 for 52110. The book value of Benis on that date was $70Additional information with out on January 1, 2020: 100 Book value Land 560 Buildings (10 year remaining life) 280 Copyright (5 year remaining life) Following are consolidation worksheet balances as of December 31, 2019 Eliminations Account Bryan Ruland Dr. Cr. Corp Corp Sales (5360) (749) Cost of Goods Sold 1700 S 0S Depreciation and Amort. 260 48 Interest Expense 5 Income from Ruland (157) Income (3513) (191) Beginning Retained Earnings Income (brought forward) Less Dividends Ending Retained Earnings Current Assets Investment in Ruland Corp. Land Buildings net Copyright 3326 2207 292 876 goodwill Total 6701 1139 (00 Accounts Payable Notes Payable Capital Stock APIC Retained Earnings (forward) Total (183) (1250) (300) (550) (4418) (6701) (200) (130) (671) (1139) Required: A.Using the above information, derive the investment in Rul 12/31/20(employ the full equity method . Also derive income from on, derive the investment in Ruland on the parents books at B. Prepare the journal entries for the consolidation and put on worksheet. C. What is consolidated retained earnings? (Do not complete on and put on worksheet. Don't complete nings? (Do not complete worksheet) On January 1, 2020, Ben Company purchased Company for $1,800,000, which approximated ben company purchased 30% of the voting common stock of Rach 1,800,000, which approximated book value. During 2020, Rach paid all shareholders dividends of $600,000 and reported o vidends of $600,000 and reported on the income statement a net loss of $280,000. PART A What is the balance in Ben's investment account e oalance in Ben's investment account on December 31, 2020 using the equity method? What is reported in Ben's income statement? Part B. Under the fair value method, what is reported in the income statement and balance sheet of Ben assuming the investment is now worth $1,600,000 2. Bryan acquires 100% of the shares of Ruland on January 1, 2020 for 52110. The book value of Benis on that date was $70Additional information with out on January 1, 2020: 100 Book value Land 560 Buildings (10 year remaining life) 280 Copyright (5 year remaining life) Following are consolidation worksheet balances as of December 31, 2019 Eliminations Account Bryan Ruland Dr. Cr. Corp Corp Sales (5360) (749) Cost of Goods Sold 1700 S 0S Depreciation and Amort. 260 48 Interest Expense 5 Income from Ruland (157) Income (3513) (191) Beginning Retained Earnings Income (brought forward) Less Dividends Ending Retained Earnings Current Assets Investment in Ruland Corp. Land Buildings net Copyright 3326 2207 292 876 goodwill Total 6701 1139 (00 Accounts Payable Notes Payable Capital Stock APIC Retained Earnings (forward) Total (183) (1250) (300) (550) (4418) (6701) (200) (130) (671) (1139) Required: A.Using the above information, derive the investment in Rul 12/31/20(employ the full equity method . Also derive income from on, derive the investment in Ruland on the parents books at B. Prepare the journal entries for the consolidation and put on worksheet. C. What is consolidated retained earnings? (Do not complete on and put on worksheet. Don't complete nings? (Do not complete worksheet) On January 1, 2020, Ben Company purchased Company for $1,800,000, which approximated ben company purchased 30% of the voting common stock of Rach 1,800,000, which approximated book value. During 2020, Rach paid all shareholders dividends of $600,000 and reported o vidends of $600,000 and reported on the income statement a net loss of $280,000. PART A What is the balance in Ben's investment account e oalance in Ben's investment account on December 31, 2020 using the equity method? What is reported in Ben's income statement? Part B. Under the fair value method, what is reported in the income statement and balance sheet of Ben assuming the investment is now worth $1,600,000
