On January 1, 2019, Everlasting, Inc. purchased Comet Corporation for $650,000. On that date the net assets of Comet had a book value of $320,000, and book values were equal to fair values with the following exceptions: FIFO Inventory --Undervalued, $30,000 Land--Undervalued, $10,000 Equipment (5 year life)--Undervalued, $75,000 Patent (5-year life)--Undervalued, $25,000 During 2019, Everlasting had income from its own operations of $220,000 and Comet had net income of $80,000. What amount of goodwill appeared on the consolidated balance sheet at December 31, 2019? Select one: A. $140,000 B. $-0- C. $330,000 D. $190,000

On January 1, 2020, Combs Corporation sold a tract of land to its 100% owned subsidiary, Tiniton, Inc., for $550,000. The land originally cost Combs $440,000. Tiniton reported net income of $270,000 and $305,000 for 2020 and 2021, respectively. Combs received dividends from Tiniton of $35,000 and $36,000 for 2020 and 2021, respectively. Assume that Combs uses the cost method to account for its investment in Tiniton. Compute the amount of the [ADJ] consolidating entry necessary for 2021. Select one: A. $341,000 B. $235,000 C. $340,000 D. $125,000

If an investor sells merchandise to an investee and the investee resells all of the items to outside parties in the same period, what equity method entry is required? Select one: A. The entire gross profit is deferred with a debit to Equity Income and credit to Equity Investment. B. No equity method entry is required, since the gross profit is realized. C. The entire gross profit is deferred with a credit to Equity Income and Debit to Equity Investment D. The investor's percentage of the gross profit is deferred with a debit to Equity Income.

Johnson Co.owns 70% of the voting common stock of Sandstone Corp. During 2021, Sandstone had revenues of $2,400,000 and expenses of $1,600,000. The AAP amortization totaled $75,000 in 2021. The non-controlling interest's share of the earnings of Sandstone Corp. is calculated to be: Select one: A. $382,500 B. $262,500 C. $240,000 D. $217,500

Cleaverland purchased 100% of Omaha on January 1, 2019 for $650,000. On that date, Omaha's stockholders' equity was $650,000, and the recognized book values of Omahas individual net assets approximated their fair values. Omaha had net incomes of $150,000 and $190,000 for 2019 and 2020, respectively. The subsidiary paid dividends amounting to $30,000 in both years. Cleaverland uses the cost method to account for its pre-consolidation investment in Omaha. What was the balance in Equity Investment at December 31, 2020? Select one: A. $990,000 B. $650,000 C. $710,000 D. $930,000