Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need help Pavin acquires all of Stabler's outstanding shares on January 1, 2018, for $680,000 in cash. Of this amount, $52,000 was attibuted to equipment

need help image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Pavin acquires all of Stabler's outstanding shares on January 1, 2018, for $680,000 in cash. Of this amount, $52,000 was attibuted to equipment with a 10 -year remaining Iife and $62,000 was assigned to trademarks expensed over a 20 -year period. Povin applies the partial equity method so that income is accrued each period based solely on the earnings reported by the subsidiary. On January 1, 2021, Pavin reports $520,000 in bonds outstanding with a carrying amount of $483,200. Stabler purchases half of these bonds on the open market for $250,800. During 2021, Pavin begins to sell merchandise to Stabler. During that year, inventory costing $158,000 was transferred at a price of $200,000. All but $32,000 (at sales price) of these goods were resold to outside parties by year-end. Stabler still owes $55,000 for inventory shipped from Pavin during Dekember. The following financial figures are for the two companies for the year ending December 31, 2021. Dividends were both declared and paid during the current year, The following financial figures are for the two companies for the year ending December 31, 2021, Dividends were both deciared and poid during the current yeor. Prepare a woeksheet to produce consolidated bolances. (For accounts where multiple consolidation entries are required, combine all debit entries inte one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entaies Into one amount and enter this amount in the credit column of the worksheet. Input all amounts as positive values.) Homework: Variable Interest Entities, Intra-Entity Debt

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems A Practictioner Emphasis

Authors: Cynthia D. Heagy, Constance M. Lehmann

10th Edition

1891002821, 9781891002823

More Books

Students also viewed these Accounting questions

Question

4 What are the main practices associated with SHRM?

Answered: 1 week ago