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Any breakdown/explanations would be appreciated :) Tyler Company acquired all of Jasmine Companys outstanding stock on January 1, 2016, for $257,800 in cash. Jasmine had
Any breakdown/explanations would be appreciated :)
Tyler Company acquired all of Jasmine Companys outstanding stock on January 1, 2016, for $257,800 in cash. Jasmine had a book value of only $181,200 on that date. However, equipment (having an eight-year remaining life) was undervalued by $62,400 on Jasmines financial records. A building with a 20-year remaining life was overvalued by $13,500. Subsequent to the acquisition, Jasmine reported the following:
Dividends Declared $10,000 40,000 20,000 Net Income 2016 $ 59,700 2017 2018 60,600 43,400 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow: Tyler Company Jasmine Company $ (386,000) $(112,000) Revenues-operating Expenses Equipment (net) Buildings (net) Common stock Retained earnings, 12/31/18 276,000 482,000 340,000 (290,000) 92,500 72,500 97,500 (55,800) (572,000) (214,000) Determine the following account balances as of December 31, 2018 a. Investment in Jasmine Conm b. Equity in Subsidiary Earnings c. Consolidated Net Income d. Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) g. Consolidated Common Stock h. Consolidated Retained Earnings, 12/31/18 panyStep by Step Solution
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