In 2011, P acquired 90% of S. The acquisition resulted in $7 excess amortization expense each year
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Question:
In 2011, P acquired 90% of S. The acquisition resulted in $7 excess amortization expense each year through 2031. The following table shows amortization expense each year through 2031. The following table shows selected account balances from the two companies as of 12/31/2022:
P | S | |
Cost of Goods Sold | 350 | 238 |
Depreciation Expense | 96 | 52 |
Inventory | 416 | 133 |
Assume the following intra-entity inventory downstream transactions during 2021 and 2022.
2021 | 2022 | |
Intraentity sales | 110 | 145 |
Intraentity cost of goods sold | 88 | 116 |
Retained earnings | 35 | 45 |
1) Solve for 2022 consolidated cost of goods sold:
P cost of goods sold:
S cost of goods sold:
Entry TI:
Entry G:
Entry *G:
Total:
2) Solve for the end of the year 2022 consolidated inventory:
P Inventory:
S Inventory:
Entry TI:
Entry G:
Entry *G:
Total:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: