Question

1 Approved Answer

Posted on Aug 07, 2024

chapter 7 question 10 i need the solution.. ASAP!! i cant do it myself Chapter 7 Homework Saved 10 Consideration transferred for 70% interest in

chapter 7 question 10 i need the solution.. ASAP!!

i cant do it myself image text in transcribed

Chapter 7 Homework Saved 10 Consideration transferred for 70% interest in Wilson Fair value of the 3e noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 721,000 309,000 $ 1,930,000 712,000 $ 318,000 7.14 points $ 80,00 (30,489) 65,5ee 115,100 202,900 $ eBook House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases dur related ending inventory balances follow Print 0 Year 2016 2017 Intra Entity Purchases $105,000 137,500 Remaining Intra-Entity Inventory- End of Year (at transfer price) $35,000 55,000 References On January 1, 2018, House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's out- The total price of these shares was $288,000, indicating neither goodwill nor other specific fair-value allocati up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at this merchandise. 45 percent is still held at year-end. $ Wilson Company (822,300) 383,000 295,500 $ Cuddy Company (335,300) 170,000 94,880 $ $ $ $ Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock House Corporation $ (914,140) 559,000 224,000 (190,660) (28,200 $ (260,000) $ (881,000) (260,000) 100,000 $ (1,041,000) $ 47,690 402,350 893,760 152,200 492,000 346,000 251,000 $ 2,585, eee $ (724,000) (820,000) 28,289) (172,000) (681, 800) (172,000) 96,000 (677,000) 295,800 354,000 (70,500) (210,000) (70,500) 50,000 (230,500) 76,000 168,000 $ $ $ $ 152,200 362,000 156,000 319,00 1,639,800 (652,080) (310,000) $ $ $ 176,000 93,180 18,400 531,500 (151,090) (150,000) $ Chapter 7 Homework Saved 10 this merchandise, 45 percent is still held at year-end. $ $ Cuddy Company (335,380) 170,000 94.ee s $ eBook Wilson Company (822,300) 383,000 295, See e (28,2ee) (172,000) (601,080) (172,000) 96,080 (677,080) 295,980 354,00 $ $ $ Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net Income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities (70, 500) (210,000 (70, see) 50,000 (230, See) 76,000 168,000 Print House Corporation $ (914, 140) 559,000 224,000 (100,660) (28,200) $ (260,000) $ (681,00) (260,00) 100,000 $ (1,041,0) $ 47,690 402,350 893,760 152,200 492,00 346,000 251,000 $ 2,585,000 $ (724,000) (820,0) (1.641,000) $ (2,585,000) $ $ $ rences 152,200 362,089 156,000 319,000 $ 1,639,000 $ (652,000) (310,000) (677,000 $ (1,639,000) $ $ 176,000 93,100 18,40 531,5ee (151,000) (150,000) (238, See) (531,5ee) $ Note: Parentheses indicate a credit balance. Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equity method based on separate company incomes has been applied to each investment. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Nonconoting consoli Accounts Debit Credit House Wilson Cuddy Corporation Company Company 1914 14011 (R22 300l (325.00 Balan Interesi Sales and other revenue 207 non 1 RE Noncontrolling consolidated Interest Balance (1.844.740) (1.844.740) (1.844.740) HOUSE CORPORATION AND CONSOLIDATED SUESILARIES Consolidation Works December 31, 2018 Consolidation Ent Accounts HOU Wilson Cuddy Debit Credit Carretation Sales and other revenue (914,140) (822,300) (335,300) 227,000 Cost of goods sold 559.000 383,000 170,000 18,960 Operating expenses 224,000 295,500 91,800 Income of Wilson Company (100,660) Income of Cuddy Company (28,200) (28,200) Net Income (260,000) (172,000) (30,500) Consolidated net income Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation Retained earnings, 1/1/18 House Corporation (881,000) Wilson Company (601,000) Cuddy Company (210,000) Net income (260,000) (172,000) (70,500) Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company 50,000 Retained earnings, 12/31/18 (1,041,000) (677,000) (230,500) Cash and receivables 47,690 295,800 76,000 Inventory 402,350 354,000 168,000 Investment in Wilson Company 893,760 Investment in Cuddy Company 152,200 152,200 Buildings 492,000 362,000 176,000 346,000 156,000 Equipment 93,100 251,000 319,000 Land 18,400 Goodwill Franchise contracts 2,585,000 1,639,000 531,500 Total assets 0 Prey 10 of 14 Next > Homework Saved Fr. 94,800 295,500 DU, UM 224,000 (100,660) (28,200) (260,000) (28,200) (172,000) (70,500) (1,844,740) (1.844.740) (881,000) (601.000) 210,000) (70,500) (260,000) (172,000) 100.000 96.000 0 IS YOU Operating expenses Income of Wilson Company Income of Cuddy Company Net income Consolidated net income Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation Retained earnings, 1/1/18 House Corporation Wilson Company Cuddy Company Net Income Dividends declared House Corporation Wilson Company Cuddy Company Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling Interest in Wilson Noncontrolling Interest in subsidiary companies Common stock Retained earnings (above) Total liabilities and equities (677.000) 295,800 354,000 50,000 (230,500) 76,000 168,000 (1,041,000) 47,690 402,350 893,760 152,200 492,000 346,000 251,000 152,200 362,000 156,000 319,000 176,000 93,100 18.400 0 2,585,000 (724,000) 1,639,000 (652,000) 531,500 (151,000) (820,000 (310,000) (1,041,000 (677,000) (2.585,000) (1,639,000) (150,000) (230,500 (531,500) 245,960 0 Chapter 7 Homework Saved 10 Consideration transferred for 70% interest in Wilson Fair value of the 3e noncontrolling interest Wilson business fair value Wilson book value Excess fair value over book value Assignments to adjust Wilson's assets to fair value: To buildings (20-year remaining life) To equipment (4-year remaining life) To franchises (10-year remaining life) To goodwill (indefinite life) $ 721,000 309,000 $ 1,930,000 712,000 $ 318,000 7.14 points $ 80,00 (30,489) 65,5ee 115,100 202,900 $ eBook House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases dur related ending inventory balances follow Print 0 Year 2016 2017 Intra Entity Purchases $105,000 137,500 Remaining Intra-Entity Inventory- End of Year (at transfer price) $35,000 55,000 References On January 1, 2018, House and Wilson acted together as co-acquirers of 80 percent of Cuddy Company's out- The total price of these shares was $288,000, indicating neither goodwill nor other specific fair-value allocati up one-half of the consideration transferred. During 2018, House acquired additional inventory from Wilson at this merchandise. 45 percent is still held at year-end. $ Wilson Company (822,300) 383,000 295,500 $ Cuddy Company (335,300) 170,000 94,880 $ $ $ $ Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock House Corporation $ (914,140) 559,000 224,000 (190,660) (28,200 $ (260,000) $ (881,000) (260,000) 100,000 $ (1,041,000) $ 47,690 402,350 893,760 152,200 492,000 346,000 251,000 $ 2,585, eee $ (724,000) (820,000) 28,289) (172,000) (681, 800) (172,000) 96,000 (677,000) 295,800 354,000 (70,500) (210,000) (70,500) 50,000 (230,500) 76,000 168,000 $ $ $ $ 152,200 362,000 156,000 319,00 1,639,800 (652,080) (310,000) $ $ $ 176,000 93,180 18,400 531,500 (151,090) (150,000) $ Chapter 7 Homework Saved 10 this merchandise, 45 percent is still held at year-end. $ $ Cuddy Company (335,380) 170,000 94.ee s $ eBook Wilson Company (822,300) 383,000 295, See e (28,2ee) (172,000) (601,080) (172,000) 96,080 (677,080) 295,980 354,00 $ $ $ Sales and other revenues Cost of goods sold Operating expenses Income of Wilson Company Income of Cuddy Company Net Income Retained earnings, 1/1/18 Net Income (above) Dividends declared Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Total assets Liabilities Common stock Retained earnings, 12/31/18 Total liabilities and equities (70, 500) (210,000 (70, see) 50,000 (230, See) 76,000 168,000 Print House Corporation $ (914, 140) 559,000 224,000 (100,660) (28,200) $ (260,000) $ (681,00) (260,00) 100,000 $ (1,041,0) $ 47,690 402,350 893,760 152,200 492,00 346,000 251,000 $ 2,585,000 $ (724,000) (820,0) (1.641,000) $ (2,585,000) $ $ $ rences 152,200 362,089 156,000 319,000 $ 1,639,000 $ (652,000) (310,000) (677,000 $ (1,639,000) $ $ 176,000 93,100 18,40 531,5ee (151,000) (150,000) (238, See) (531,5ee) $ Note: Parentheses indicate a credit balance. Using the three companies' following financial records for 2018, prepare a consolidation worksheet. The partial equity method based on separate company incomes has been applied to each investment. (For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Amounts in the Debit and Credit columns should be entered as positive. Negative amounts for the Noncontrolling Interest and Consolidated Totals columns should be entered with a minus sign.) HOUSE CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidation Worksheet December 31, 2018 Consolidation Entries Nonconoting consoli Accounts Debit Credit House Wilson Cuddy Corporation Company Company 1914 14011 (R22 300l (325.00 Balan Interesi Sales and other revenue 207 non 1 RE Noncontrolling consolidated Interest Balance (1.844.740) (1.844.740) (1.844.740) HOUSE CORPORATION AND CONSOLIDATED SUESILARIES Consolidation Works December 31, 2018 Consolidation Ent Accounts HOU Wilson Cuddy Debit Credit Carretation Sales and other revenue (914,140) (822,300) (335,300) 227,000 Cost of goods sold 559.000 383,000 170,000 18,960 Operating expenses 224,000 295,500 91,800 Income of Wilson Company (100,660) Income of Cuddy Company (28,200) (28,200) Net Income (260,000) (172,000) (30,500) Consolidated net income Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation Retained earnings, 1/1/18 House Corporation (881,000) Wilson Company (601,000) Cuddy Company (210,000) Net income (260,000) (172,000) (70,500) Dividends declared House Corporation 100,000 Wilson Company 96,000 Cuddy Company 50,000 Retained earnings, 12/31/18 (1,041,000) (677,000) (230,500) Cash and receivables 47,690 295,800 76,000 Inventory 402,350 354,000 168,000 Investment in Wilson Company 893,760 Investment in Cuddy Company 152,200 152,200 Buildings 492,000 362,000 176,000 346,000 156,000 Equipment 93,100 251,000 319,000 Land 18,400 Goodwill Franchise contracts 2,585,000 1,639,000 531,500 Total assets 0 Prey 10 of 14 Next > Homework Saved Fr. 94,800 295,500 DU, UM 224,000 (100,660) (28,200) (260,000) (28,200) (172,000) (70,500) (1,844,740) (1.844.740) (881,000) (601.000) 210,000) (70,500) (260,000) (172,000) 100.000 96.000 0 IS YOU Operating expenses Income of Wilson Company Income of Cuddy Company Net income Consolidated net income Net income attributable to noncontrolling interest (Wilson) Net income attributable to noncontrolling interest (Cuddy) Net income attributable to House Corporation Retained earnings, 1/1/18 House Corporation Wilson Company Cuddy Company Net Income Dividends declared House Corporation Wilson Company Cuddy Company Retained earnings, 12/31/18 Cash and receivables Inventory Investment in Wilson Company Investment in Cuddy Company Buildings Equipment Land Goodwill Franchise contracts Total assets Liabilities Noncontrolling interest in Cuddy Noncontrolling Interest in Wilson Noncontrolling Interest in subsidiary companies Common stock Retained earnings (above) Total liabilities and equities (677.000) 295,800 354,000 50,000 (230,500) 76,000 168,000 (1,041,000) 47,690 402,350 893,760 152,200 492,000 346,000 251,000 152,200 362,000 156,000 319,000 176,000 93,100 18.400 0 2,585,000 (724,000) 1,639,000 (652,000) 531,500 (151,000) (820,000 (310,000) (1,041,000 (677,000) (2.585,000) (1,639,000) (150,000) (230,500 (531,500) 245,960 0