Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 (2 points) Jans Inc. acquired all of the outstanding common stock of Tysk Corp. on January 1, 2016, for $372,000. Equipment with a ten-year

5 (2 points) Jans Inc. acquired all of the outstanding common stock of Tysk Corp. on January 1, 2016, for $372,000. Equipment with a ten-year life was undervalued on Tysk's financial records by $46,000. Tysk also owned an unrecorded customer list with an assessed fair value of $67,000 and an estimated remaining life of ten years. Tysk earned reported net income of $180,000 in 2016 and $216,000 in 2017. Dividends of $70,000 were paid in each of these two years. Selected account balances as of December 31, 2018, for the two companies follow. Revenues Jans $1,080,000 Tysk $840,000 Expenses 480,000 700,000 Investment income Not given 0 Retained earnings, 840,000 600,000 1/1/18 Dividends paid 132,000 70,000 If the partial equity method had been applied, what was 2018 consolidated net income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cima Learning System Management Accounting Performance Evaluation Edition

Authors: Robert Scarlett

4th Edition

0750684305, 978-0750684309

More Books

Students also viewed these Accounting questions