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answer all the questions with detail, I will give you a thumb! Consolidated Statement of Earnings Laurier Ltd. is the wholly owned subsidiary of Stuart
answer all the questions with detail, I will give you a thumb!
Consolidated Statement of Earnings Laurier Ltd. is the wholly owned subsidiary of Stuart Corporation. The December 31, 2018, statement of earnings for the two corporations are as follows: Stuart Laurier $3,200 Sales revenue $500 Sales revenue Income from investment in Laurier Total revenue 500 Cost of goods sold $920 $160 Total revenue Cost of goods sold Depreciation expense Other expenses Depreciation expense 410 95 Other expenses 680 2,010 135 3 90 Net income $? Net income $110 The acquisition cost of Stuart's 100% ownership interest in Laurier equalled its book value on Laurier's records. During 2018, Laurier paid a cash dividend of $25 to Stuart. Required: 1. Calculate the income from investment in Laurier as reported on Stuart's statement of earnings. Stuart Corporation Calculation of Income from Subsidiary For the Year Ended December 31, 2018 Net income reported by Laurier $ Stuart's share of Laurier % Income from investment in Laurier $ 2. Calculate the 2018 net income reported by the parent company (Stuart) on its statement of earnings. Stuart Corporation Parent Company Statement of Earnings For the Year Ended December 31, 2018 Revenues Investment income-equity method Cost of goods sold Depreciation expense Other expenses Net income 3. Prepare the 2018 consolidated statement of earnings for Stuart. Stuart Corporation Consolidated Statement of Earnings For the Year Ended December 31, 2018 Revenue Less: Cost of goods sold Gross margin Less: Operating expenses Depreciation Other Net incomeStep by Step Solution
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