Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

80% of B was purchased by A for $600k in year 1. The book value of B is $500k. The excess of cost of book

80% of B was purchased by A for $600k in year 1. The book value of B is $500k. The excess of cost of book value was from goodwill. B's income included sales to A for $40k that cost B $25k. 30% of this inventory is still available as of year 3. Inventory sold for profit of $5k was in A inventory in year 2. Complete the worksheet for year 3. THE IMAGE IS COMPLETE DO NOT TELL ME THE QUESTION IS INCOMPLETE ALL NECESSARY INFO IS PROVIDED.

image text in transcribed

Consolidated Bal. 11 Consolidation Entries 12 B Dr. . 13 Sales $50,000 $250,000 14 Expenses $30,000 $150,000 15 Income from S. 16 Income $100,000 17 NCI 18 Controlling Interest 19 Retained Earnings Jan 1, 10 $700,000 $190,000 20 Dividends 100,000 0 21 Retained Earnings Dec 31, 10 $290,000 22 Cash $120,000 $30,000 23 Receivables 90,000 70,000 24 Inventory 100,000 100,000 25 Equipment (net) 100,000 350,000 26 Patents 50,000 27 Investment in Costello 796,400 28 Goodwill 29 Land 100,000 100,000 30 Building (net) 120,000 100,000 31 $1,426,400 $800,000 32 Accounts Payable $100,000 $50,000 33 Capital Stock 460,000 34 Non-Controlling Interest 35 Retained Earnings (12/31) 290.000 36 $1,426,400 $800,000 Consolidated Bal. 11 Consolidation Entries 12 B Dr. . 13 Sales $50,000 $250,000 14 Expenses $30,000 $150,000 15 Income from S. 16 Income $100,000 17 NCI 18 Controlling Interest 19 Retained Earnings Jan 1, 10 $700,000 $190,000 20 Dividends 100,000 0 21 Retained Earnings Dec 31, 10 $290,000 22 Cash $120,000 $30,000 23 Receivables 90,000 70,000 24 Inventory 100,000 100,000 25 Equipment (net) 100,000 350,000 26 Patents 50,000 27 Investment in Costello 796,400 28 Goodwill 29 Land 100,000 100,000 30 Building (net) 120,000 100,000 31 $1,426,400 $800,000 32 Accounts Payable $100,000 $50,000 33 Capital Stock 460,000 34 Non-Controlling Interest 35 Retained Earnings (12/31) 290.000 36 $1,426,400 $800,000

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_2

Step: 3

blur-text-image_3

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

International Business Finance

Authors: Michael Connolly

1st Edition

0415701538, 9780415701532

More Books

Students also viewed these Finance questions

Question

What are the advantages and disadvantages of an MBO program?

Answered: 1 week ago