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Accounting 405, Assignment 3 Show all computations, use Excel, and submit your solution on Canvas McDonald December 31 Debit Credit 520,000 300,000 100,000 Sales Cost
Accounting 405, Assignment 3 Show all computations, use Excel, and submit your solution on Canvas McDonald December 31 Debit Credit 520,000 300,000 100,000 Sales Cost of goods sold Operating expenses Investment income Hanycz December 31 Debit Credit 780,000 380,000 200,000 Not given 1,300,000 60,000 640,000 660,000 410,000 510,000 400,000 500,000 700,000 Retained earnings, Jan 1 Dividends declared clared Trademarks Royalty agreements Licensing agreements Liabilities Common stock - $10 par value Additional paid-in capital 20,000 200,000 300,000 400,000 200,000 100,000 600,000 Above are several account balances taken from the records of Hanycz and McDonald as of December 31, 2018. A few asset accounts have been omitted here. All revenues, expenses, and dividend declarations occurred evenly throughout the year. An annual test has indicated no goodwill impairment. On July 1, 2018, Hanycz acquired 80% of McDonald for $1,470,000 cash consideration. In addition, Hanycz agreed to pay additional cash to the former owners of McDonald if certain performance measures are achieved after three years. Hanycz assessed a $30,000 fair value for the contingent performance obligation as of the acquisition date and as of December 31, 2018. On July 1, 2018, McDonald's assets and liabilities had book values equal to their fair value except for some trademarks (with five-year remaining lives) that were undervalued by $160,000. Hanycz estimated McDonald's total fair value at $1,837,500 on July 1, 2018. For the following items, what balances would be reported on Hanyci's December 31, 2018, consolidated financial statements? Sales Expenses Non-controlling Interest in Subsidiary's Net Income Consolidated Net Income Retained Earnings, January 1 Trademarks Goodwill Accounting 405, Assignment 3 Show all computations, use Excel, and submit your solution on Canvas McDonald December 31 Debit Credit 520,000 300,000 100,000 Sales Cost of goods sold Operating expenses Investment income Hanycz December 31 Debit Credit 780,000 380,000 200,000 Not given 1,300,000 60,000 640,000 660,000 410,000 510,000 400,000 500,000 700,000 Retained earnings, Jan 1 Dividends declared clared Trademarks Royalty agreements Licensing agreements Liabilities Common stock - $10 par value Additional paid-in capital 20,000 200,000 300,000 400,000 200,000 100,000 600,000 Above are several account balances taken from the records of Hanycz and McDonald as of December 31, 2018. A few asset accounts have been omitted here. All revenues, expenses, and dividend declarations occurred evenly throughout the year. An annual test has indicated no goodwill impairment. On July 1, 2018, Hanycz acquired 80% of McDonald for $1,470,000 cash consideration. In addition, Hanycz agreed to pay additional cash to the former owners of McDonald if certain performance measures are achieved after three years. Hanycz assessed a $30,000 fair value for the contingent performance obligation as of the acquisition date and as of December 31, 2018. On July 1, 2018, McDonald's assets and liabilities had book values equal to their fair value except for some trademarks (with five-year remaining lives) that were undervalued by $160,000. Hanycz estimated McDonald's total fair value at $1,837,500 on July 1, 2018. For the following items, what balances would be reported on Hanyci's December 31, 2018, consolidated financial statements? Sales Expenses Non-controlling Interest in Subsidiary's Net Income Consolidated Net Income Retained Earnings, January 1 Trademarks Goodwill
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