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7/11 please fix Req.A On January 1, 2017, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $891,000. The 10 percent noncontrolling interest

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On January 1, 2017, Travers Company acquired 90 percent of Yarrow Company's outstanding stock for $891,000. The 10 percent noncontrolling interest had an assessed fair value of $99,000 on that date. Any acquisition-date excess fair value over book value was attributed to an unrecorded customer list developed by Yarrow with a remaining life of 15 years. On the same date, Yarrow acquired an 80 percent interest in Stookey Company for $496,000. At the acquisition date, the 20 percent noncontrolling interest fair value was $124,000. Any excess fair value was attributed to a fully amortized copyright that had a remaining life of 10 years. Although both investments are accounted for using the initial value method, neither Yarrow nor Stookey have distributed dividends since the acquisition date. Travers has a policy to declare and pay cash dividends each year equal to 40 percent of its separate company operating earnings, Reported income totals for 2017 follow: Travers Company Yarrow Company Stookey Company $490,000 255,000 196,000 es Following are the 2018 financial statements for these three companies. Stookey has transferred numerous amounts of inventory to Yarrow since the takeover amounting to $118,000 (2017) and $147,500 (2018). These transactions include the same markup applicable to Stookey's outside sales. In each year, Yarrow carried 20 percent of this inventory into the succeeding year before disposing of it. An effective tax rate of 40 percent is applicable to all companies. All dividend declarations are paid in the same period. Sales Cost of goods sold Operating expenses Net incone Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Yarrow Company Investnent in Stookey Company Land, buildings, and equipment (net) Total assets Liabilities Connon stock Travers Company $(1,090,000) 580,700 120,900 $ (388,400) $ (890,080) (388,400 155,360 $61,123,040) $ 559,900 891,000 @ 1,175, 100 $ 2,625,000 $(1,602,960) (500.000 Yarrow Company $ (746,300) 397,900 99,000 $ (249,400) $(748,200) (249, 400) @ $ (997,600) $ 473, 100 @ 496,000 874,000 $ 1,843, 100 $ (522,700) (322.00) Stookey Company $ (538,000) 322,800 107,600 (107,600) $ (471,000) (107,600) @ $(578,600) $ 382,700 @ 508,600 5 891,300 $ 112,700) (200.000 Check Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities $(1,002,960) (500,000) (1,123, 040) $(2,626,000) $ (522,700) (322,800) (997,6801 $(1,843, 100) $ (112,700) (200,000) (578,600) $ (891,300) Note: Parentheses indicate a credit balance. a. Prepare the business combination's 2018 consolidation worksheet; ignore income tax effects. 5. Determine the amount of Income tax for Travers and Yarrow on a consolidated tax return for 2018. c. Determine the amount of Stookey's income tax on a separate tax return for 2018. 1. Based on the answers to requirements (b) and (c), what journal entry does this combination make to record 2018 income tax? Complete this question by entering your answers in the tabs below. Reg A Req Band C ReqD Prepare the business combination's 2018 consolidation worksheet; ignore income tax effects. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet Amounts in the Debit and credit columns should be entered as positive. Negative amounts for the Noncontrolling Intere and Consolidated Totals columns should be entered with a minus sign. Round your answers to nearest whole dollar amount. ) Show less TRAVERS COMPANY AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Travers Yarrow Stookey Debit Company Company Company Credit (1.000.000) (746,300 (538.000 147.500 580,700 397.900 322 800 11 800 156.940 hann Accounts Sales and other rever Cost of goods sold Noncontrolling Consolidated Interest Balance (2,226.500) 1.150.200 AAN amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be ente! and Consolidated Totals columns should be entered with a minus sign. Round your answers to nearest whole dollar amount.) Noncontrolling Consolidated Accounts TRAVERS COMPANY AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet For Year Ending December 31, 2018 Consolidation Entries Travers Yarrow Stookey Debit Credit Company Company Company (1,090,000) (746,300) (638,000) 147,500 580,700 397 900 322,800 11,800 156,940 120,900 99.000 107,600 26,100 (388.400) (249,400) (107,600) Interest Balance (2,226,800) 1,156,260 353,600 (31,039) (18,148) (716,940) 31,039 18,148 (667.753) Sales and other revenue Cost of goods sold Operating expenses Separate company net income Consolidated net income Net Income attributable to NCI (Yarrow) Net Income attributable to NCI (Stookey) Net income attributable to Travers Company Retained earings, 1/1/18 Travers Company Yarrow Company Stookey Company Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Yarrow Company Investment in Stookey Company (890,000) 342,943 137,648 (1.232.943) (748,200) 885,848 471,000 (249,400) (471,000) (107.600) (388400) 155,360 (1.123.040) 550.900 899,000 (997.600) 473,100 (578,600) 382,700 156,360 (1.077,583) 1.403.900 11,800 342,9431,233,943 137,648 633 648 496,000 (388,400) (249,400) (107,600) (31,039) (18,148) (716,940) 31,039 18,148 (667,753) (1,282,943) (890,000) 342,943 137,648 (748,200) 885,848 471,000 (471,000) (107.600) (249,400) Separate company net income Consolidated net income Net income attributable to NCI (Yarrow) Net income attributable to NCI (Stookey) Net Income attributable to Travers Company Retained earnings, 1/1/18: Travers Company Yarrow Company Stookey Company Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Yarrow Company Investment in Stookey Company Land, buildings, & equipment (net) Copyright Customer list Total assets Uabilis Common stock Retained earnings, 12/31/18 (above) Ni interest in Stookey. 1/1/18 Noncontrolling interest in Yarrow, 1/1/18 Noncontrolling interest in subsidiaries Total abilities and equities (388,400) 155,360 (1,123,040) 559,900 891,000 (997,600) 473,100 (578,600) 382,700 155,360 (1.077,583) 1.403,900 11,800 342,943 1,233,943 137,648 633,648 496,000 874,000 1.175, 100 508,600 130,500 162.400 14,500 11,600 2,628,000 (1.002.960) (500,000) (1,123,040) 1,843,100 (522,700) (322,800) (997 600) 891,300 (112,700) (200,000) (578,600) 2,557,700 116,000 150,800 4,228.400 (1,638,360) (500,000) (1,745,336) lo o 522,800 132,312 146,965 16.240 (158,412) (137,105) (344,704) (2.626.000) (1.843.100) (891.300) 2.838.539 (344,704) (4.228.400) 2.838,530 d. Based on the answers to requirements (b) and (c), what journal entry does this combination make to record Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req Land C Reg D b. Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for 2018. c. Determine the amount of Stookey's income tax on a separate tax return for 2018. b. $ 244,680 Income tax payable Income tax payable c. $ 43,040 Complete this question by entering your answers in the tabs below. Req A Req B and C ReqD Based on the answers to requirements (b) and (c), what journal entry does this combination make to record 2018 income tax? (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Credit 1 1 General Journal Deferred income tax-Asset Income tax expense-Current Income tax payable Debit 944 286,776 287,720 (388,400) (249,400) (107,600) (31,039) (18,148) (716,940) 31,039 18,148 (667,753) (1,282,943) (890,000) 342,943 137,648 (748,200) 885,848 471,000 (471,000) (107.600) (249,400) Separate company net income Consolidated net income Net income attributable to NCI (Yarrow) Net income attributable to NCI (Stookey) Net Income attributable to Travers Company Retained earnings, 1/1/18: Travers Company Yarrow Company Stookey Company Net Income (above) Dividends declared Retained earnings, 12/31/18 Current assets Investment in Yarrow Company Investment in Stookey Company Land, buildings, & equipment (net) Copyright Customer list Total assets Uabilis Common stock Retained earnings, 12/31/18 (above) Ni interest in Stookey. 1/1/18 Noncontrolling interest in Yarrow, 1/1/18 Noncontrolling interest in subsidiaries Total abilities and equities (388,400) 155,360 (1,123,040) 559,900 891,000 (997,600) 473,100 (578,600) 382,700 155,360 (1.077,583) 1.403,900 11,800 342,943 1,233,943 137,648 633,648 496,000 874,000 1.175, 100 508,600 130,500 162.400 14,500 11,600 2,628,000 (1.002.960) (500,000) (1,123,040) 1,843,100 (522,700) (322,800) (997 600) 891,300 (112,700) (200,000) (578,600) 2,557,700 116,000 150,800 4,228.400 (1,638,360) (500,000) (1,745,336) lo o 522,800 132,312 146,965 16.240 (158,412) (137,105) (344,704) (2.626.000) (1.843.100) (891.300) 2.838.539 (344,704) (4.228.400) 2.838,530 d. Based on the answers to requirements (b) and (c), what journal entry does this combination make to record Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req Land C Reg D b. Determine the amount of income tax for Travers and Yarrow on a consolidated tax return for 2018. c. Determine the amount of Stookey's income tax on a separate tax return for 2018. b. $ 244,680 Income tax payable Income tax payable c. $ 43,040 Complete this question by entering your answers in the tabs below. Req A Req B and C ReqD Based on the answers to requirements (b) and (c), what journal entry does this combination make to record 2018 income tax? (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Credit 1 1 General Journal Deferred income tax-Asset Income tax expense-Current Income tax payable Debit 944 286,776 287,720

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