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Pandise Corporation acquired $0 percent (8,000) of the 10,000 outstanding shares of voting stock of Sun 'n Shade Company, on January 2, 2019, paying $27.25

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Pandise Corporation acquired $0 percent (8,000) of the 10,000 outstanding shares of voting stock of Sun 'n Shade Company, on January 2, 2019, paying \$27.25 a share when the stock was selling at $26 (Hhit: Controlling Interest is valued at the price actually paid. Noncontrolling buterest is valued at the curent stock price). At the date of acquisition. Sun "n Shade had Capital Stock (no par value) of S10,000. Retained Eamings of $119,300, and Accumulated Other Comprehensive Income of \$3,700. Paradise uses the complete equity method to account for its investment in Sun 'n Shade. At the date of acquisition, Sun 'n Shade's assets and liabilities were fairly reported except for the followino There was no contingent consideration. Revaluations are amortized on a straght-line basis. Identifiable intangible assets and goodwill arising from this acquisition are tested anmually for impairment. IPRD was impaired during 2019-2021 for $2,500. - Sun "n Shade paid $1,500 in dividends. - In 2022, Sun "n Shade charged Paradise $10.000 for janitorial services casting S7,500, See Requiremem 6,I1. - Paradise and Sun "n Shade regularly sell merchandise to each other. During 2022 , they made the following transfers: See Requirement 6,I1 though I6. Paradise's inventories were purchased from Sun 'n Shac 8 vice versa. - Goodwill is tested for impairment annually. Impairments from 2019 to 2021 amounted to $3,000. At December 31,2022 the fair value of Sun 'n Shade is $400,000 and the fair value of its net identifiable assets is $375,000. See Requirement 5 . - In 2020, Paradise sold land costing $5,000 to Sun ' n Shade for $5,500. In 2022, Sun 'n Shade sold the land for $6,250. See Requirement 6, I-7. - During 2022, Sun 'n Shade sold Land to Paradise with a book value of $2,750 for $3,000. Paradise still holds the land. See Requirement 6,I8. In 2019, Sun 'n Shade sold equipment costing $1,750 with $900 in accumulated depreciation, to Paradise for $1,500. Sun n Shade estimates the equipment has a 10 -year remaining life and will depreciate the equipment straight-line. Paradise still holds the equipment at the end of 2022 . See Requirement 6,I9. 6. Calculate the impact of the intercompany transactions: I-1 Intercompany sales and purchases of services I-2 Intercompany sales and purchases of merchandise I-3 Intercompany receivables and payables I-4 Unconfirmed upstream profit in beginning inventory I-5 Unconfirmed downstream profit in the beginning inventory I-6 Unconfimed profits (upstream and downstream) in the ending inventories I-7 Unconfirmed gainslosses on downstream transfers of nondepreciable assets. I-8 Unconfirmed gainslosses on upstream transfers of nondepreciable assets I-9 Unconfirmed gainslosses on transfers of depreciable assets. Pandise Corporation acquired $0 percent (8,000) of the 10,000 outstanding shares of voting stock of Sun 'n Shade Company, on January 2, 2019, paying \$27.25 a share when the stock was selling at $26 (Hhit: Controlling Interest is valued at the price actually paid. Noncontrolling buterest is valued at the curent stock price). At the date of acquisition. Sun "n Shade had Capital Stock (no par value) of S10,000. Retained Eamings of $119,300, and Accumulated Other Comprehensive Income of \$3,700. Paradise uses the complete equity method to account for its investment in Sun 'n Shade. At the date of acquisition, Sun 'n Shade's assets and liabilities were fairly reported except for the followino There was no contingent consideration. Revaluations are amortized on a straght-line basis. Identifiable intangible assets and goodwill arising from this acquisition are tested anmually for impairment. IPRD was impaired during 2019-2021 for $2,500. - Sun "n Shade paid $1,500 in dividends. - In 2022, Sun "n Shade charged Paradise $10.000 for janitorial services casting S7,500, See Requiremem 6,I1. - Paradise and Sun "n Shade regularly sell merchandise to each other. During 2022 , they made the following transfers: See Requirement 6,I1 though I6. Paradise's inventories were purchased from Sun 'n Shac 8 vice versa. - Goodwill is tested for impairment annually. Impairments from 2019 to 2021 amounted to $3,000. At December 31,2022 the fair value of Sun 'n Shade is $400,000 and the fair value of its net identifiable assets is $375,000. See Requirement 5 . - In 2020, Paradise sold land costing $5,000 to Sun ' n Shade for $5,500. In 2022, Sun 'n Shade sold the land for $6,250. See Requirement 6, I-7. - During 2022, Sun 'n Shade sold Land to Paradise with a book value of $2,750 for $3,000. Paradise still holds the land. See Requirement 6,I8. In 2019, Sun 'n Shade sold equipment costing $1,750 with $900 in accumulated depreciation, to Paradise for $1,500. Sun n Shade estimates the equipment has a 10 -year remaining life and will depreciate the equipment straight-line. Paradise still holds the equipment at the end of 2022 . See Requirement 6,I9. 6. Calculate the impact of the intercompany transactions: I-1 Intercompany sales and purchases of services I-2 Intercompany sales and purchases of merchandise I-3 Intercompany receivables and payables I-4 Unconfirmed upstream profit in beginning inventory I-5 Unconfirmed downstream profit in the beginning inventory I-6 Unconfimed profits (upstream and downstream) in the ending inventories I-7 Unconfirmed gainslosses on downstream transfers of nondepreciable assets. I-8 Unconfirmed gainslosses on upstream transfers of nondepreciable assets I-9 Unconfirmed gainslosses on transfers of depreciable assets

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