need help on the ones i marked with green arrow
Question 10 Partially correct Mark 8.89 out of 1 0.00 Y Flag question Determining ending consolidated balances in the third year following the acquisitionCost method Assume a parent company acquired a subsidiary onlanuary 1, 2017, for $1,000,000. The purchase price was $650,000 in excess ofthe subsidiary's $350,000 book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $400,000 was assigned to Property, plant and equipment with a remaining economic useful life of8 years, and $250,000 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $80,000. The parent uses Investment cost method of pre consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2019, are as follows: Parent Subsidiary Parent Subsidiary Income statement: Balance sheet: Sales $2,400,000 $900,000 Assets Cost ofgoods sold (1,300,000) (550,000) Cash $1,100,000 $150,000 lGross profit 1,100,000 350,000 Accounts receivable 1,500,000 240,000 Investment income 50,000 Inventory 2,400,000 500,000 Operating expenses (600,000) (250,000) Equity investment 1,000,000 Net income $550,000 $100,000 Property, plant and equipment [PPE), net 4,000,000 1,000,000 $10,000,000 $1,890,000 Statement of retained earnings: BOY retained earnings $1,500,000 $ 500,000 Liabilities and stockholders\" equity Net income 550,000 100,000 Accounts payable $1,000,000 $170,000 Dividends [250,000] (50,000) Accrued liabilities 800,000 200,000 Ending retained earnings $1,800,000 $ 550,000 Longterm liabilities 3,000,000 700,000 Common stock 500,000 120,000 APIC 2,900,000 150,000 Retained earnings 1,800,000 550,000 $10,000,000 $1,890,000 . . . . . . 'I' At what amount Wlll the followmg accounts appear In the consolidated fmancral statements for the year ended December 11 20.1 Q? I $10,000,000 I $1 ,890.000 Statement of retained earnings: BOY retained earnings $1,500,000 1% 500.000 Liabilities and stockholders equity Net income 550,000 100,000 Accounts payable $1 ,000.000 $170,000 Dividends {250,000} (50,000} Accrued liabilities 800,000 200,000 Ending retained earnings $1,800,000 $ 550.000 Longterm liabilities 3,000,000 ?00,000 Common stock 500,000 120,000 APIC 2,900,000 150,000 Retained earnings 1,800,000 550,000 $10,000,000 $1 ,890.000 At what amount will the following accounts appear in the consolidated nancial statements for the year" ended December 31. 2019? a. Sales 3,300. 000 b. Investment Income c. Operating expenses 900. 000 0 d. Inventories 2.900.000 e. Equityr investment 0 f. PPE, net 5,250,000 g. Goodwill h. Common Stock 250. 000 500. 000 i. Retained Earnings 123 You have correctly selected 8. Partially correct Marks for this submission: 8.89M 0.00. Question 9 Not complete Mark 8.89 out of 1 0.00 V Flag question Determining ending consolidated balances in the second year following the acquisitionCost method Assume a parent company acquired a subsidiary onlanuary 1, 2018, for $1,200,000. The purchase price was $650,000 in excess of the subsidiary's $550,000 book value of Stockholders' Equity on the acquisition date. Of this excess purchase price, $250,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $400,000 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $280,000. The parent uses the cost method of preconsolidation Equity investment bookkeeping. The financial statements ofthe parent and its subsidiary for the year ended December 31, 2019, are as follows: Parent Subsidiary Income statement Sales $5,000,000 $1,200,000 Cost of goods sold {3,000,000} {700,000} Gross profit 2,000,000 500,000 Equity income 40,000 Operating expenses {1,500,000} {400,000} Net income $540,000 $100,000 Statement of retained earnings BOY retained earnings 1,500,000 600,000 Net income 540,000 100,000 Dividends {200,000} {40,000} Ending retained earnings $1,840,000 $660,000 Parent Balance sheet Assets Cash $800,000 Accounts receivable 1,000,000 Inventory 1,600,000 Equity investment 1,200,000 Property, plant 8; equipment 3,000,000 $7,600,000 Liabilities and stockholders equity Accounts payable $700,000 Accrued liabilities 900,000 Long-term lia bilities 2,500,000 Common stock 500,000 APIC 1,160,000 Retained earnings 1,840,000 $7,600,000 Subsidiary $1 50,000 340. 000 500, 000 900.000 $1 $90,000 $1 40,000 220,000 600,000 1 20,000 1 50,000 660,000 $1 390,000 At what amount will the following accounts appear on the consolidated nancial statements? Statement of retained earnings $7,600,000 $1,890,000 BOY retained earnings 1,500,000 600,000 Liabilities and stockholders' equity Net income 540,000 100,000 Accounts payable $700,000 $140,000 Dividends (200,000) (40,000) Accrued liabilities 900,000 220,000 Ending retained earnings $1,840,000 $660,000 Long-term liabilities 2,500,000 600,000 Common stock 500,000 120,000 APIC 1,160,000 150,000 Retained earnings 1,840,000 660,000 $7,600,000 $1,890,000 At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answers. a. Sales $ 6,200,000 b. Investment income tA C. Operating expenses $ 1,925,000 d. Inventories $ 2, 100,000 e. Equity investment $ 0 f. Property, plant & equipment, net $ 4,100,000 g. Goodwill $ 400,000 h. Common stock $ 500,000 i. Retained earnings $ 123 Check You have correctly selected 8. Partially correct Marks for this submission: 8.89/10.00
