Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, 2013, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for

On January 1, 2013, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill which has not been impaired.

As of December 31, 2013, before preparing the consolidated worksheet, the financial statements appeared as follows:

During 2013, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of this purchase had been paid for by Strong by the end of the year. 60% of these goods were still in the company's possession on December 31, 2013.

1. What is the total of consolidated revenues?

2. What is the total of consolidated operating expenses?

3. What is the total of consolidated cost of goods sold? 184,800 (not sure how to get)

4. What is the consolidated total of non-controlling interest appearing in the balance sheet? 120,400 (not sure how to get)

5. What is the consolidated total for equipment (net) at December 31, 2013?

6. What is the consolidated total for inventory at December 31, 2013?

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

Auditing

Authors: Alan Millichamp, John Taylor

11th Edition

1473749301, 978-1473749306

More Books

Students also viewed these Accounting questions