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Help Save & Exit Sub Problem 6-44 (LO 6-3) Pavin acquires all of Stabler's outstanding shares on January equipment with a 10-year remaining life and

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Help Save & Exit Sub Problem 6-44 (LO 6-3) Pavin acquires all of Stabler's outstanding shares on January equipment with a 10-year remaining life and $65,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the 1, 2015, for $710,000 in cash. Of this amount, $55,000 was attributed to partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary On January 1, 2018, Pavin reports $550,000 bonds on the open market for $265,500 in bonds outstanding with a carrying amount of $512.000. Stabler purchases haifl of these During 2018, $180,000. All but $35,000 (at sales price) of these goods were resold to outside parties by inventory shipped from Pavin during December Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of year-ond, Stabler s owes S 58.000 for The following financial figures are for the two companies for the year ending December 31, 2018 Dividends were both declared and paid during the current year (815,000)$ (555,000) 265,000 183,500 Cost of goods sold tsterest expense-boods Loss onxtinguishneat of bonds 480,00 50,000 61,000 27,250 Equity in Stabler's inoone Net income Retalned earnings1/1/ Dividends paid (257 750)(133,750 (370. (411,D) (133,750 (257 750) Retalned earnings, 12/31/18 560, 00 12.900 200,000 Investment in Stabler Investment in Pavin bonds 26,750 2 3 4 W E Help Save & Exit Sub Problem 6-44 (LO 6-3) Pavin acquires all of Stabler's outstanding shares on January equipment with a 10-year remaining life and $65,000 was assigned to trademarks expensed over a 20-year period. Pavin applies the 1, 2015, for $710,000 in cash. Of this amount, $55,000 was attributed to partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary On January 1, 2018, Pavin reports $550,000 bonds on the open market for $265,500 in bonds outstanding with a carrying amount of $512.000. Stabler purchases haifl of these During 2018, $180,000. All but $35,000 (at sales price) of these goods were resold to outside parties by inventory shipped from Pavin during December Pavin begins to sell merchandise to Stabler. During that year, inventory costing $135,000 was transferred at a price of year-ond, Stabler s owes S 58.000 for The following financial figures are for the two companies for the year ending December 31, 2018 Dividends were both declared and paid during the current year (815,000)$ (555,000) 265,000 183,500 Cost of goods sold tsterest expense-boods Loss onxtinguishneat of bonds 480,00 50,000 61,000 27,250 Equity in Stabler's inoone Net income Retalned earnings1/1/ Dividends paid (257 750)(133,750 (370. (411,D) (133,750 (257 750) Retalned earnings, 12/31/18 560, 00 12.900 200,000 Investment in Stabler Investment in Pavin bonds 26,750 2 3 4 W E

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