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    "question_id": "4239493",
    "url": "\/study-help\/questions\/on-january-1-2019rich-companyacquired-90of-the-outstanding-shares-of-4239493",
    "question_creation_date_js": "2024-06-28T04:37:13-04:00",
    "question_creation_date": "Jun 28, 2024 04:37 AM",
    "meta_title": "[Solved] On January 1, 2019RICH Companyacquired 90 | SolutionInn",
    "meta_description": "Answer of - On January 1, 2019RICH Companyacquired 90%of the outstanding shares of POOR co. at book value .During 2019 and 2020,in | SolutionInn",
    "meta_keywords": "january,1,2019rich,companyacquired,90%,outstanding,shares,poor,book,value,2019,2020,intercompany",
    "question_title_h1": "On January 1, 2019RICH Companyacquired 90%of the outstanding shares of POOR co. at book value .During 2019 and 2020,intercompany sales amounted to 2,000,000 and 4,000,000",
    "question_title": "On January 1, 2019RICH Companyacquired 90%of the outstanding shares of POOR co.",
    "question_title_for_js_snippet": "On January 1, 2019RICH Companyacquired 90 of the outstanding shares of POOR co  at book value  During 2019 and 2020,intercompany sales amounted to 2,000,000 and 4,000,000 respectively RICH consistently recognize a 20  markup based on sales while POOR Inc  had a 25  gross profit on sales   Theinventories in the buyer's book, which all came from intercompany transactionsshow  Dec  31, 2019Dec  31,2020 RICH 240,000160,000 POOR100,00040,000 On October 1, 2020, POOR Inc  purchased a piece of land costing 1,000,000 from RICH Company for 1,500,000 On the other hand, on July 1,2020, POOR Inc sold an equipment with a carrying value of 60,000 and remaining life of 3 years to RICH for 42,000  Separate Statements of Comprehensive Income for the two companies for the year 2020 follow  RICHPOOR Sales25,000,00014,000,000 Cost of Sales15,000,0008,400,000 Gross Profit10,000,0005,600,000 Operating expenses 6,000,0003,800,000 Operating profit 4,000,0001,800,000 Loss on Sale of off Equip(18,000) Dividends Revenue 40,000 4,000,0001,822,000 REQUIRED   1 Compute the Consolidated Sales 2 Compute the Consolidated Cost of Sales 3 Compute the Consolidated Gross Profit 4 Compute the Consolidated Net Income, Controlling interest in net income, Non Controlling interest in net income",
    "question_description": "<p>On January 1, 2019RICH Companyacquired 90%of the outstanding shares of <\/p> <p>POOR co. at book value .During 2019 and 2020,intercompany sales amounted to 2,000,000 and 4,000,000 respectively.RICH consistently recognize a 20% markup based on sales while POOR Inc. had a 25% gross profit on sales .<\/p> <p><\/p> <p>Theinventories in the buyer's book, which all came from intercompany transactionsshow:<\/p> <p>Dec. 31, 2019Dec. 31,2020<\/p> <p>RICH 240,000160,000<\/p> <p>POOR100,00040,000<\/p> <p><\/p> <p>On October 1, 2020, POOR Inc. purchased a piece of land costing 1,000,000 from RICH Company for <\/p> <p>1,500,000.On the other hand, on July 1,2020, POOR Inc.sold an equipment with a carrying value of 60,000 and remaining life of 3 years to RICH for 42,000.<\/p> <p><\/p> <p>Separate Statements of Comprehensive Income for the two companies for the year 2020 follow:<\/p> <p><\/p> <p>RICHPOOR<\/p> <p>Sales25,000,00014,000,000<\/p> <p>Cost of Sales15,000,0008,400,000<\/p> <p>Gross Profit10,000,0005,600,000<\/p> <p>Operating expenses 6,000,0003,800,000<\/p> <p>Operating profit 4,000,0001,800,000<\/p> <p>Loss on Sale of off Equip(18,000)<\/p> <p>Dividends Revenue<u>40,000<\/u><\/p> <p>4,000,0001,822,000<\/p> <p><\/p> <p>REQUIRED ;<\/p> <p>1.Compute the Consolidated Sales<\/p> <p>2.Compute the Consolidated Cost of Sales<\/p> <p>3.Compute the Consolidated Gross Profit<\/p> <p>4.Compute the Consolidated Net Income, Controlling interest in net income, Non Controlling interest in net income<\/p>",
    "transcribed_text": "",
    "related_book": {
        "title": "Income Tax Fundamentals 2013",
        "isbn": "1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516",
        "edition": "31st Edition",
        "authors": "Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill",
        "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1124.jpg",
        "uri": "\/textbooks\/income-tax-fundamentals-2013-31st-edition-9781285586618",
        "see_more_uri": ""
    },
    "free_related_book": {
        "isbn": "380551459X",
        "uri": "\/textbooks\/recent-advances-in-canadian-neuropsychopharmacology-1st-edition-978-3805514590-263110",
        "name": "Recent Advances In Canadian Neuropsychopharmacology",
        "edition": "1st Edition"
    },
    "question_posted": "2024-06-28 04:37:13",
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            "name": "On January 1, 2019RICH Companyacquired 90%of the outstanding shares of POOR co.",
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