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Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2018 follow: Parson Syber Consolidated Company Company Totals Sales $ (970,000) $ (770,000) $ (1,586,000) Cost of goods sold 585,000 485,000 930,000 Operating expenses 134,000 151,000 287,000 Income of Syber (100, 300) @ Separate company net income (351,300) $ (134,000) Consolidated net income (369,000) Net income attributable to noncontrolling interest 17,700 Net income attributable to Parson Company $ (351,380) Retained earnings, 1/1/18 (637,100) $ (324,000) (637,100) Net Income (above) (351, 300) (134,000) (351,300) Dividends declared 66,000 47,200 66,000 Retained earnings, 12/31/18 $ (922,400) $ (411,000) (922,400) Cash and receivables 468,000 97, eee 539,600 Inventory 207.000 Investnent in Syber Company 194,000 383,000 440,400 Land, buildings, and equipment 414,000 311,000 Trademarks 725,000 32,500 Total assets $ 1,529,400 $ 602,000 $ 1,680, 100 Liabilities Common stock (355,880) $ 115,000 $ (412.600 (205,000) Additional paid-in capital (76,000) (205,000) Noncontrolling interest in Syber (47.000) (47, 000) Retained earnings (above) (93, 100) (922,400) Total liabilities and equities (411,000) (922,400) $ (1,529,400) $ (602,000) $ (1,680, 180) $ s $ $ $ S @ I a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventorv gross profit deferred at the end of the current period? a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? I. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? J. With a tax rate of 40 percent, what income tax journal entry is recorded if thee two companies prepare separate tax returns? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A to H Req 1 and ) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity Inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity Inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less Partial equity method b Method that Parson use to account for its investment Balance of the intra-entity inventory gross profit Amount allocated to trademarks $ 18,000 30.000 $ Req A to H Req I and ) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? 9. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less a. b. Partial equity c. method $ d Method that Parson use to account for its investment Balance of the intra-entity Inventory gross profit Amount allocated to trademarks Current year intra-ently inventory sales Intra-entity inventory sales made Balance of the intra-entity liability Intra-entity gross profit was deferred from the preceding period Ending non controlling interest $ 18,000 30.000 154,000 e. $ t 19 Upstream $ $ h 57.400 34.900 31.000 Ragland Complete this question by entering your answers in the tabs below. Req A to H Req I and 1. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? 1. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet 1 2 3 Record the income tax expense. Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet > Record the income tax expense for Parson. Note: Enter debits before credits Transaction General Journal 2 ebit Credit Journal entry worksheet Record the income tax expense for Syber. Note: Enter debits before credits Transaction General Journal Debit Credit Parson Company acquired an 80 percent interest in Syber Company on January 1, 2017. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2018 follow: Parson Syber Consolidated Company Company Totals Sales $ (970,000) $ (770,000) $ (1,586,000) Cost of goods sold 585,000 485,000 930,000 Operating expenses 134,000 151,000 287,000 Income of Syber (100, 300) @ Separate company net income (351,300) $ (134,000) Consolidated net income (369,000) Net income attributable to noncontrolling interest 17,700 Net income attributable to Parson Company $ (351,380) Retained earnings, 1/1/18 (637,100) $ (324,000) (637,100) Net Income (above) (351, 300) (134,000) (351,300) Dividends declared 66,000 47,200 66,000 Retained earnings, 12/31/18 $ (922,400) $ (411,000) (922,400) Cash and receivables 468,000 97, eee 539,600 Inventory 207.000 Investnent in Syber Company 194,000 383,000 440,400 Land, buildings, and equipment 414,000 311,000 Trademarks 725,000 32,500 Total assets $ 1,529,400 $ 602,000 $ 1,680, 100 Liabilities Common stock (355,880) $ 115,000 $ (412.600 (205,000) Additional paid-in capital (76,000) (205,000) Noncontrolling interest in Syber (47.000) (47, 000) Retained earnings (above) (93, 100) (922,400) Total liabilities and equities (411,000) (922,400) $ (1,529,400) $ (602,000) $ (1,680, 180) $ s $ $ $ S @ I a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventorv gross profit deferred at the end of the current period? a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? I. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? J. With a tax rate of 40 percent, what income tax journal entry is recorded if thee two companies prepare separate tax returns? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A to H Req 1 and ) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity Inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity Inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less Partial equity method b Method that Parson use to account for its investment Balance of the intra-entity inventory gross profit Amount allocated to trademarks $ 18,000 30.000 $ Req A to H Req I and ) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? 9. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber Company computed? Show less a. b. Partial equity c. method $ d Method that Parson use to account for its investment Balance of the intra-entity Inventory gross profit Amount allocated to trademarks Current year intra-ently inventory sales Intra-entity inventory sales made Balance of the intra-entity liability Intra-entity gross profit was deferred from the preceding period Ending non controlling interest $ 18,000 30.000 154,000 e. $ t 19 Upstream $ $ h 57.400 34.900 31.000 Ragland Complete this question by entering your answers in the tabs below. Req A to H Req I and 1. With a tax rate of 40 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? 1. With a tax rate of 40 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less View transaction list Journal entry worksheet 1 2 3 Record the income tax expense. Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet > Record the income tax expense for Parson. Note: Enter debits before credits Transaction General Journal 2 ebit Credit Journal entry worksheet Record the income tax expense for Syber. Note: Enter debits before credits Transaction General Journal Debit Credit