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On January 1 , 2 0 2 3 , Pulaski, Incorporated, acquired a 6 0 percent interest in the common stock of Sheridan, Incorporated, for
On January Pulaski, Incorporated, acquired a percent interest in the common stock of Sheridan, Incorporated, for $ Sheridan's book value on that date consisted of common stock of $ and retained earnings of $ Also, the acquisitiondate fair value of the percent noncontrolling interest was $ The subsidiary held patents with a year remaining life that were undervalued within the company's accounting records by $ and also had unpatented technology year estimated remaining life undervalued by $ Any remaining excess acquisitiondate fair value was assigned to an indefinitelived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At yearend, there are no intraentity payables or receivables. Intraentity inventory sales between the two companies have been made as follows: Year Cost to Pulaski Transfer Price to Sheridan Ending Balance at transfer price $ $ $ The individual financial statements for these two companies as of December and the year then ended follow: Items Pulaski, Incorporated Sheridan, Incorporated Sales $ $ Cost of goods sold Operating expenses Equity in earnings in Sheridan Net income $ $ Retained earnings, $ $ Net income Dividends declared Retained earnings, $ $ Cash and receivables $ $ Inventory Investment in Sheridan Buildings net Equipment net Patents net Total assets $ $ Liabilities $ $ Common stock Retained earnings, Total liabilities and equities $ $ Screenshot Sales
On January Pulaski, Incorporated, acquired a percent interest in the common stock of Sheridan, Incorporated, for $ Sheridan's book value on that date consisted of common stock of $ and retained earnings of $ Also, the acquisitiondate fair value of the percent noncontrolling interest was $ The subsidiary held patents with a year remaining life that were undervalued within the company's accounting records by $ and also had unpatented technology year estimated remaining life undervalued by $ Any remaining excess acquisitiondate fair value was assigned to an indefinitelived trade name. Since acquisition, Pulaski has applied the equity method to its Investment in Sheridan account. At yearend, there are no intraentity payables or receivables.
Intraentity inventory sales between the two companies have been made as follows:
Year Cost to Pulaski Transfer Price to Sheridan Ending Balance at transfer price
$ $ $
The individual financial statements for these two companies as of December and the year then ended follow:
Items Pulaski, Incorporated Sheridan, Incorporated
Sales $ $
Cost of goods sold
Operating expenses
Equity in earnings in Sheridan
Net income $ $
Retained earnings, $ $
Net income
Dividends declared
Retained earnings, $ $
Cash and receivables $ $
Inventory
Investment in Sheridan
Buildings net
Equipment net
Patents net
Total assets $ $
Liabilities $ $
Common stock
Retained earnings,
Total liabilities and equities $ $ Screenshot
Sales
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