{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-25T00:02:17-04:00", "answer_date": "2024-05-25 00:02:17", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1656226", "url": "\/study-help\/questions\/parker-inc-acquires-70-percent-of-sawyer-company-for-420000-1656226", "question_creation_date_js": "2024-05-25T00:02:17-04:00", "question_creation_date": "May 25, 2024 12:02 AM", "meta_title": "[Solved] Parker, Inc., acquires 70 percent of Sawy | SolutionInn", "meta_description": "Answer of - Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyer's outstanding sha | SolutionInn", "meta_keywords": "parker,inc.,acquires,70,percent,sawyer,company,$420,000,remaining,30,s,outstanding", "question_title_h1": " Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyer's outstanding shares continue to trade at a collective", "question_title": " Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The", "question_title_for_js_snippet": "Parker, Inc , acquires 70 percent of Sawyer Company for $420,000 The remaining 30 percent of Sawyer's outstanding shares continue to trade at a collective value of $174,000 On the acquisition date, Sawyer has the following accounts Current assets Land Buildings Liabilities Book Value $ 210,000 170,000 300,000 (280,000) Fair Value $ 210,000 180,000 330,000 (280,000) The buildings have a 10 year remaining life In addition, Sawyer holds a patent worth $140,000 that has a five year remaining life but is not recorded on its financial records At the end of the year, the two companies report the following balances Parker Sawyer Revenues Expenses $ (900,000) $ (600,000) 600,000 400,000 a Assume that the acquisition took place on January 1 What figures would appear in a consolidated income statement for this year b Assume that the acquisition took place on April 1 Sawyer's revenues and expenses occurred uniformly throughout the year What amounts would appear in a consolidated income statement for this year Combined revenues Combined expenses Consolidated net income Net income attributable to noncontrolling interest Net income attributable to Parker, Inc a January 1 b April 1", "question_description": "\"image", "transcribed_text": "Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyer's outstanding shares continue to trade at a collective value of $174,000. On the acquisition date, Sawyer has the following accounts: Current assets Land Buildings Liabilities Book Value $ 210,000 170,000 300,000 (280,000) Fair Value $ 210,000 180,000 330,000 (280,000) The buildings have a 10-year remaining life. In addition, Sawyer holds a patent worth $140,000 that has a five-year remaining life but is not recorded on its financial records. At the end of the year, the two companies report the following balances: Parker Sawyer Revenues Expenses $ (900,000) $ (600,000) 600,000 400,000 a. Assume that the acquisition took place on January 1. What figures would appear in a consolidated income statement for this year? b. Assume that the acquisition took place on April 1. Sawyer's revenues and expenses occurred uniformly throughout the year. What amounts would appear in a consolidated income statement for this year? Combined revenues Combined expenses Consolidated net income Net income attributable to noncontrolling interest Net income attributable to Parker, Inc. a. January 1 b. April 1", "related_book": { "title": "Managerial Accounting", "isbn": "978-007811100, 78111005, 978-0078111006", "edition": "14th edition", "authors": "Ray Garrison, Eric Noreen and Peter Brewer", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/260.jpg", "uri": "\/textbooks\/managerial-accounting-14th-edition-260", "see_more_uri": "" }, "free_related_book": { "isbn": "0470383720", "uri": "\/textbooks\/the-practical-guide-to-wall-street-equities-and-derivatives-1st-edition-9780470383728", "name": "The Practical Guide To Wall Street Equities And Derivatives", "edition": "1st Edition" }, "question_posted": "2024-05-25 00:02:17", "see_more_questions_link": "\/study-help\/questions\/business-corporate-finance-2020-July-01", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/questions\/imagine-you-are-a-member-of-your-local-school-board-384781", "description": "Imagine you are a member of your local school board. 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