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Posted on Jul 22, 2024

7. Poursused an interest in Son 12/31/2010 for $100.000. On that date S's inventory had a IV of $30,000 and RV of S10.000 other assets

7. Poursused an interest in Son 12/31/2010 for $100.000. On that date S's inventory had a IV of $30,000 and RV of S10.000 other assets and liabilities had V's which approximated their BV's. The book value of S's equity at acquisition was S50,000 Compute the amounts as they would appear in the consolidated balance sheet Goodwill S Inventory NCU Synergy Acquisition Premium 8. Powns 100% of S. S sold 250 units of inventory, which had cost 55 each to P in 2010 at a price of $8.50 were resold to unrelated customers during 2010 and the rest in 2011. S net income for 2010 and 2011 was SI0,000 and $12.000), respectively, Enter the consolidating entry needed to eliminate the intercompany sale, plugging COGS is OK here: ACCOUNT DEBIT CREDIT But also show direct calculations for COGS adjustments, in other words, not Sales Inventory-COGS 2010 Equity Income: 2011 Equity Income 8. Pacquired 100% of Son 12/31/10 for $5,000 at which time Shad common stock of $1.000 and Retained Earnings of $2,000. Information about assets and liabilities whose FVs and BVs differ appear below. P'S COST CSRE BVSE AAP YRS 2011 2014 ACCOUNT INVENTORY EQUIPMENT PATENT NOTES PAY TOTAL GOODWILL FMV 600 700 1,000 (800) BV 400 1.100 500 - 10 (900) 5 Complete the allocation schedule and calculate the balance in P's investment account assuming full-equity method and SNIE $500 in 2011. dividends S0. If the Investment account has a balance of $2,500 @ 12/31/14, and there has been no change in common stock, what is the balance in S's retained earnings at that date? If P had paid $3,200 for S, what would be the value assigned to S's Inventory in the consolidated statements? What would be the effect on income for 2010 9. Psells to Sequipment costing $4.000 with accumulate depreciation of 2.500 on 1/1/15 for $300. Remaining life Make all required consolidating entries for 2015 3 years ACCOUNT DEBIT CREDIT If SNI = $1,000 in 2016, what will be equity income? Hint: $1,400 or $600. 10. Record the journal entries on P's books necessitated by the following: Pestablished a subsidiary called Foreign in the country of Zed whose currency is the Z. P invested Z200 when the ZS rate was 2:1. During 2015 Zed earned Z80 (average rate 2.5:1). paid a dividend of Z55 (spot rate = 2.75:1). The year-end rate was 3:1. In 2016 Foreign's income was Z100,(2.4:51), dividends =50 (Z2:51). year end rate (Z1.87:51) 7. Poursused an interest in Son 12/31/2010 for $100.000. On that date S's inventory had a IV of $30,000 and RV of S10.000 other assets and liabilities had V's which approximated their BV's. The book value of S's equity at acquisition was S50,000 Compute the amounts as they would appear in the consolidated balance sheet Goodwill S Inventory NCU Synergy Acquisition Premium 8. Powns 100% of S. S sold 250 units of inventory, which had cost 55 each to P in 2010 at a price of $8.50 were resold to unrelated customers during 2010 and the rest in 2011. S net income for 2010 and 2011 was SI0,000 and $12.000), respectively, Enter the consolidating entry needed to eliminate the intercompany sale, plugging COGS is OK here: ACCOUNT DEBIT CREDIT But also show direct calculations for COGS adjustments, in other words, not Sales Inventory-COGS 2010 Equity Income: 2011 Equity Income 8. Pacquired 100% of Son 12/31/10 for $5,000 at which time Shad common stock of $1.000 and Retained Earnings of $2,000. Information about assets and liabilities whose FVs and BVs differ appear below. P'S COST CSRE BVSE AAP YRS 2011 2014 ACCOUNT INVENTORY EQUIPMENT PATENT NOTES PAY TOTAL GOODWILL FMV 600 700 1,000 (800) BV 400 1.100 500 - 10 (900) 5 Complete the allocation schedule and calculate the balance in P's investment account assuming full-equity method and SNIE $500 in 2011. dividends S0. If the Investment account has a balance of $2,500 @ 12/31/14, and there has been no change in common stock, what is the balance in S's retained earnings at that date? If P had paid $3,200 for S, what would be the value assigned to S's Inventory in the consolidated statements? What would be the effect on income for 2010 9. Psells to Sequipment costing $4.000 with accumulate depreciation of 2.500 on 1/1/15 for $300. Remaining life Make all required consolidating entries for 2015 3 years ACCOUNT DEBIT CREDIT If SNI = $1,000 in 2016, what will be equity income? Hint: $1,400 or $600. 10. Record the journal entries on P's books necessitated by the following: Pestablished a subsidiary called Foreign in the country of Zed whose currency is the Z. P invested Z200 when the ZS rate was 2:1. During 2015 Zed earned Z80 (average rate 2.5:1). paid a dividend of Z55 (spot rate = 2.75:1). The year-end rate was 3:1. In 2016 Foreign's income was Z100,(2.4:51), dividends =50 (Z2:51). year end rate (Z1.87:51)