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Can you help with this? Haynes, lnc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 7,300 shares of $10
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Haynes, lnc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 7,300 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Tumer reported a net book value of $66,600. However, its equipment [with a liveyear remaining life] was undervalued by $8,500 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $34,400, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Haynes Turner Revenues 5 (727,000) 5 (345,000) Expenses 513,060 122,606 Investment income I'Ilo't given 0 Dividends declared 110,000 810,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Haynes Turner Revenues 5- (843,000) 5 (419,500) Expenses 535, 260 262,906 Investment income I'Ilo't given 0 Dividends declared 130,000 20,000 Equipment 525,000 302,000 a. 1I.I'I.r'hat balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? 12-1. What is the consolidated equipment balance as of December 31, 2021? c?_ Would this answer be affected by the investment method applied by the parent? d. Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Show less A a. Investment in Turner account b. Consolidated net income C-1. Consolidated equipment C-2. Would this answer be affected by the investment method applied by the parent?Step by Step Solution
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