Module 1: X B Assignmen X Self-Assess X @ Module Lec X M Inbox (844) X C Home | Che X @ AS 7 - ACC X Question 2 X (8) Wh: 41 X Homework X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:... Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -.. (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Financial statements of Par Corp. and its subsidiary Star Inc. on December 31, Year 12, are shown below: BALANCE SHEETS 10 At December 31, Year 12 Par Star points Cash $ 43,000 $ 1, 300 Accounts receivable 103, 006 88, 000 Inventories 86, 040 51, 000 Land 33, 00 73, 000 Plant and equipment 380, 000 730, 000 Book Accumulated depreciation (183, 000 (303, 000) Investment in Star common shares 212, 80 $ 674, 840 $ 640, 300 Print Accounts payable 93 , 200 $ 183, 000 Accrued liabilities 8, 300 10, 600 Preferred shares 53 , 000 Common shares 450, 000 150, 000 References Retained earnings 123, 340 243 , 700 $ 674, 840 $ 640, 300 RETAINED EARNINGS STATEMENTS For the Year Ended December 31, Year 12 Par Star Balance, January 1 $133, 340 $280, 700 Net income (loss) 17,000 (14, 000) 150 , 340 266 , 700 Dividends (000 ' EZ ) (000 ' LZ ) Balance, December 31 $123, 340 $243, 700 Other Information . On January 1, Year 5, the balance sheet of Star showed the following shareholders' equity: $8 cumulative preferred shares, 500 shares issued $ 53,000 Common shares, 2, 000 shares issued 150,000 Mc Graw Type here to search O w X 9:31 PM 23'C Cloudy / ENG 2021-07-22Module 1: X B Assignmen X Self-Assess X @ Module Lec X M Inbox (844) X C Home | Che X @ AS 7 - ACC X Question 2 X 8 (8) WhatsA X Homework X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax.. https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -... (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Other Information . On January 1, Year 5, the balance sheet of Star showed the following shareholders' equity: 10 points $8 cumulative preferred shares, 500 shares issued $ 53,000 Common shares, 2,000 shares issued 150,000 Deficit (Note 1) (83, 000) $120, 000 Book Note 1: Dividends on preferred shares are two years in arrears. Print On this date, Par acquired 1,400 common shares of Star for a cash payment of $212,800 The fair values of Star's identifiable net assets differed from carrying amounts only with respect to the following: References Carrying Fair value amount Accounts receivable $ 37, 006 $ 35,000 Inventory 47,00 54 , 000 Plant 510, 000 560, 000 Long-term liabilities 304,000 324, 000 The plant had an estimated remaining useful life of five years on this date, and the long-term liabilities had a maturity date of December 30, Year 12. Any goodwill is to be tested annually for impairment. . Both Par and Star make substantial sales to each other at an intercompany selling price that yields the same gross profit as the sales they make to unrelated customers. Intercompany sales in Year 12 were as follows: Par to Star $ 220,000 Star to Par 339,000 . During Year 12, Par billed Star $2,000 per month in management fees. At year-end, Star had paid for all months except for Mc Graw 9:31 PM Type here to search O w X 23 C Cloudy ENG 2021-07-22Module 1: 5 X B Assignmen X @ Self-Assess X B Module Lec X M Inbox (844) X C Home | Che X @ AS 7 - ACC X Question 2 X 8 (8) WhatsA X Homework X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -.. (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 . During Year 12, Par billed Star $2,000 per month in management fees. At year-end, Star had paid for all months except for December. . The January 1, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: 10 points Inventory of Par $ 17, 000 Inventory of Star 000'9T Book . The December 31, Year 12, inventories of the two companies contained unrealized intercompany profits as follows: Print Inventory of Par $ 38,000 Inventory of Star 40, 000 References . On July 1, Year 7, Star sold equipment to Par for $62,000. The equipment had a carrying amount in the records of Star of $42,000 on this date and an estimated remaining useful life of five years. Goodwill impairment losses were recorded as follows: Year 7, $76,000; Year 9, $47,370; and Year 12, $19,860. . Assume a 40% corporate tax rate. . Par has accounted for its investment in Star by the cost method. All dividends in arrears were paid by December 31, Year 11. Required: (a) Prepare, with all necessary calculations, the following: (i) Year 12 consolidated retained earnings statement. (Input all amounts as positive values. Omit $ sign in your response.) Par Corp. Consolidated Retained Earnings Statement Year Ended December 31, Year 12 Balance January 1 $ Net loss Dividends Mc Graw Type here to search O w X 9:31 PM 23'C Cloudy / ENG 2021-07-22Module 1: X B Assignmen X Self-Assess X B Module Lec X M Inbox (844) X C Home | Che X @ AS 7 - ACC X Question 2 X 8 (8) WhatsA X Homework X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:... Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -... (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Required: (a) Prepare, with all necessary calculations, the following: (i) Year 12 consolidated retained earnings statement. (Input all amounts as positive values. Omit $ sign in your response.) 10 Par Corp. points Consolidated Retained Earnings Statement Year Ended December 31, Year 12 Balance January 1 $ Net loss Book Dividends Balance December 31 $ Print (ii) Consolidated balance sheet as at December 31, Year 12. References Par Corp. Consolidated Balance Sheet as at December 31, Year 12 Assets Cash Accounts receivable Inventory Land Plant and equipment (net) Deferred income tax Goodwill Accounts payable $ Liabilities and Equity Mc Graw 9:31 PM Type here to search O w X 23'C Cloudy / ENG 2021-07-22Module 1: 5 X B Assignmen X @ Self-Assess X @ Module Lec X M Inbox (844) X C Home | Che X @ AS 7 - ACC X Question 2 X 8 (8) WhatsA X Homework X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -.. (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Balance January 1 $ Net loss Dividends 10 Balance December 31 $ points (ii) Consolidated balance sheet as at December 31, Year 12. Book Par Corp. Consolidated Balance Sheet Print as at December 31, Year 12 Assets References Cash Accounts receivable Inventory Land Plant and equipment (net) Deferred income tax Goodwill Accounts payable $ Liabilities and Equity $ Mc Graw Type here to search O w X 9:31 PM 23'C Cloudy ENG 2021-07-22Module 1: X B Assignmen X Self-Assess X @ Module Lec X M Inbox (844) X C Home | Che X B AS 7 - ACC X Question 2 X 8 (8) WhatsA X Homework X + X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FI... Ad : Apps LinkedIn Learning:.. Intermediate Accousimulation managm... Federal Income Tax... https://mail-attach... . Tax Meetings S sheridan works S Sheridan College -... (16) Slim Thighs &... > > Reading list AS 7 i Saved Help Save & Exit Submit Check my work 2 Deferred income tax Goodwill Accounts payable $ 10 Liabilities and Equity points Book Print $ References (b) How would the return on equity attributable to Par's shareholders for Year 12 change if Star's preferred shares were non-cumulative instead of cumulative? O No Change O Change (c) On January 1, Year 13, Star issued common shares for $100,000 in cash. Because Par did not purchase any of these shares, Par's ownership percentage declined from 70 to 56%. Calculate the gain or loss that would be charged or credited to consolidated shareholders' equity as a result of this transaction. (Input all amounts as positive values. Round intermediate calculations and final answer to nearest dollar amount. Omit $ sign in your response. (Click to select) v Mc Graw Type here to search O 9 W X 9:31 PM 23'C Cloudy X / ENG 2021-07-22
