Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $726,000. On January 1, Year 6. Pic Company acquired an

On January 1, Year 5, Pic Company acquired 7,500 ordinary shares of Sic Company for $726,000. On January 1, Year 6. Pic Company acquired an additional 2,000 ordinary shares of Sic Company for $260,000. On January 1, Year 5, the shareholders' equity of Sic was as follows: Ordinary shares (10,000 no par value shares issued) Retained earnings $200,000 324,000 $524,000 The following are the statements of retained earnings for the two companies for Years 5 and 6: Pic Year 5 Year 6 Retained earnings, beginning of year $ 548,000 Profit Dividends Retained earnings, end of year 178,000 (100,000) $ 626,000 159,000 (120,000) $ 626,000 $ 665,000 Sic Year 6 $ 380,500 159,500 (90,000) $ 380,500 $450,000 Year 5 $ 324,000 146,500 (90,000) Additional Information Pic uses the cost method to account for its investment in Sic. . Any acquisition differential is allocated to customer contracts, which are expected to provide future benefits until December 31, Year 7. Neither company has any customer contracts recorded on their separate-entity records. There were no unrealized profits from intercompany transactions since the date of acquisition. Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omlt $ sign in your response.) Consolidated profit attributable to Pic's shareholders $ (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign In your response.) Required: (a) Calculate consolidated profit attributable to Pic's shareholders for Year 6. (Omit $ sign in your response.) Consolidated profit attributable to Pic's shareholders (b) Calculate the following account balances for the consolidated statement of financial position at December 31, Year 6: (Omit $ sign In your response.) (i) Customer contracts (ii) Non-controlling interest (iii) Retained earnings

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

Managerial Accounting

Authors: Mcgrawhil/Irwin

1st Edition

B008CMOMTS

More Books

Students also viewed these Accounting questions

Question

What should be the dominant goal of prisons?

Answered: 1 week ago

Question

what are the provisions in the absence of Partnership Deed?

Answered: 1 week ago

Question

1. What is called precipitation?

Answered: 1 week ago

Question

1.what is dew ?

Answered: 1 week ago