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answer all the three questions please. Please answer the following three questions. Question 1: Dalton Corp. owned 80% of the outstanding common stock of Shrugs
answer all the three questions please.
Please answer the following three questions. Question 1: Dalton Corp. owned 80% of the outstanding common stock of Shrugs Inc. On January 1, 2018, Dalton acquired a building with a ten-year life for $440,000. No salvage value was anticipated and the building was to be depreciated on the straight-line basis. On January 1, 2020, Dalton sold this building to Shrugs for $400,000. At that time, the building had a remaining life of eight years but still no expected salvage value. For consolidation purposes, prepare the worksheet entry to adjust the Excess Depreciation (ED entry) for this building for 2020? Question 2: On January 1, 2018, Pride, Inc. acquired 60% of the outstanding voting common stock of Strong Corp. for $273,000. There is no active market for Strong's stock. Of this payment, $27,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $45,000. Any remaining excess was attributable to goodwill, which has not been impaired. As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows: Revenues Cost of goods sold Operating expenses Net income Pride, Inc. $ 420,000 (196,000) (28,000) S 196,000 Strong Corp. $280,000 (112,000) (14,000) $154.000 Retained camings, 1/1/18 Net income (above) Dividends paid Retained earnings, 12/31/18 $ 420,000 196,000 0 616,000 $210,000 154.000 0 $364.000 Cash and receivables Inventory Investment in Strong Corp Equipment (net) Total assets $ 294,000 210,000 364.000 616,000 $1.484.000 $126,000 154.000 0 420,000 $700,000 Liabilities Common stock Retained earnings, 12/31/18 (above) Total liabilities and stockholders' equity $ 588,000 280,000 616,000 $1.484.000 $196,000 140,000 364.000 $700,000 During 2018, Pride bought inventory for $105,000 and sold it to Strong for $140,000. As of December 31, 2018, 60% of these goods remained in the company's possession 1. What is the total of consolidated revenes? 2. What is the total of consolidated operating expenses? 3. What is the total of consolidated cost of goods sold? 4. What is the consolidated total of noncontrolling interest appearing in the balance sheet? 5. What is the consolidated total for equipment (net) at December 31, 20187 6. What is the consolidated total for inventory at December 31, 2018? an 6,0 Question 3: Gargiulo Company, a 80% owned subsidiary of Posito Corporation, transfers inventory to Posito at a 30% gross profit rate. The following data are available pertaining specifically to Posito's intra-entity purchases from Gargiulo, Gargiulo was acquired on January 1, 2017 2017 2018 Purchases by Posito $8,000 $12,000 $15.000 Ending inventory on Posito's books 2,400 3,000 6,000 Assume the equity method is used. The following data are available pertaining to Gargiulo's income and dividends 2019 2017 2018 2019 Gargiulo's net income $80,000 S95,000 S98,000 Dividends paid by Gargiulo 10,000 10,000 15.000 1. Compute the equity in earnings of Gargiulo reported on Posito's books for 2017 2. Compute the equity in camnings of Gargiulo reported on Posito's books for 2018 3. Compute the equity in earnings of Gargiulo reported on Posito's books for 2019 4. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2017 5. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2018, 6. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2019, 7. For consolidation purposes, what amount would be debited to cost of goods sold for the 2017 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise? 8. For consolidation purposes, what amount would be debited to cost of goods sold for the 2018 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 transfer of merchandise? 9. For consolidation purposes, what amount would be debited to cost of goods sold for the 2019 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2019 intra-entity transfer of merchandise? 10. For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2017 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise? 11. For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2018 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise? 12. For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2019 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 intra-entity transfer of merchandise Step by Step Solution
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