Penguin Corporation acquired 80 of the outstanding voting stock of Snow Company on January 1, 2012, for $420,000 in cash and other consideration At the acquisition date, Penguin assessed Snow s identifiable assets and liabilities at a collective net fair value of $525,000 and the fair value of the 20 percent noncontrolling interest was $105,000 No excess fair value over book value amortization accompanied the acquisition The following selected account balances are from the individual financial records of these two companies as of December 31, 2013 Penguin Snow Sales $640,000 $360,000 Cost of Goods Sold 290,000 197,000 Operating expenses 150,000 105,000 Retained earnings, 1 1 13 740,000 180,000 Inventory 346,000 110,000 Buildings (net) 358,000 157,000 Investment income not given 0 Each of the following problems is an independent situation A Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost Intra entity transfers were $90,000 in 2012 and $110,000 in 2013 Of this inventory, Snow retained and then sold $28,000 of the 2012 transfers in 2013 and held $42,000 of the 2013 transfers until 2014 On consolidated financial statements for 2013, determine the balances that would appear for the following accounts Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary s Net Income B Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost Intra entity transfers were $50,000 in 2012 and $80,000 in 2013 Of this inventory, $21,000 of the 2012 transfers were retained and then sold by Penguin in 2013, whereas $35,000 of the 2013 transfers was held until 2014 On consolidated financial statements for 2013, determine the balances that would appear for the following accounts Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary s Net Income C Penguin sells Snow a building on January 1, 2012, for $80,000, although its book value was only $50,000 on this date The building had a five year remaining life and was to be depreciated using the straight line method with no salvage value Determine the balances that would appear on consolidated financial statements for 2013 for the following accounts Building (net) Operating Expenses Noncontrolling Interest on Subsidiary s Net Income Penguin Corporation acquired 80 of the outstanding voting stock of Snow Company on January 1, 2012, for $420,000 in cash and other consideration At the acquisition date, Penguin assessed Snow's identifiable assets and liabilities at a collective net fair value of $525,000 and the fair value of the 20 percent noncontrolling interest was $105,000 No excess fair value over book value amortization accompanied the acquisition The following selected account balances are from the individual financial records of these two companies as of December 31, 2013 Penguin Snow Sales $640,000 $360,000 Cost of Goods Sold 290,000 197,000 Operating expenses 150,000 105,000 Retained earnings, 1 1 13 740,000 180,000 Inventory 346,000 110,000 Buildings (net) 358,000 157,000 Investment income not given 0Each of the following problems is an independent situation A Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost Intraentity transfers were $90,000 in 2012 and $110,000 in 2013 Of this inventory, Snow retained and then sold $28,000 of the 2012 transfers in 2013 and held $42,000 of the 2013 transfers until 2014 On consolidated financial statements for 2013, determine the balances that would appear for the following accounts Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary's Net Income B Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost Intraentity transfers were $50,000 in 2012 and $80,000 in 2013 Of this inventory, $21,000 of the 2012 transfers were retained and then sold by Penguin in 2013, whereas $35,000 of the 2013 transfers was held until 2014 On consolidated financial statements for 2013, determine the balances that would appear for the following accounts Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary's Net Income C Penguin sells Snow a building on January 1, 2012, for $80,000, although its book value was only $50,000 on this date The building had a five year remaining life and was to be depreciated using the straight line method with no salvage value Determine the balances that would appear on consolidated financial statements for 2013 for the following accounts Building (net) Operating Expenses Noncontrolling Interest on Subsidiary's Net Income

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 23, 2024

Penguin Corporation acquired 80 % of the outstanding voting stock of Snow Company on January 1, 2012, for $420,000 in cash and other consideration. At

Penguin Corporation acquired 80 % of the outstanding voting stock of Snow Company on January 1, 2012, for $420,000 in cash and other consideration. At the acquisition date, Penguin assessed Snow?s identifiable assets and liabilities at a collective net fair value of $525,000 and the fair value of the 20 percent noncontrolling interest was $105,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two companies as of December 31, 2013: Penguin Snow Sales $640,000 $360,000 Cost of Goods Sold 290,000 197,000 Operating expenses 150,000 105,000 Retained earnings, 1/1/13 740,000 180,000 Inventory 346,000 110,000 Buildings (net) 358,000 157,000 Investment income not given -0- Each of the following problems is an independent situation: A. Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost. Intra-entity transfers were $90,000 in 2012 and $110,000 in 2013. Of this inventory, Snow retained and then sold $28,000 of the 2012 transfers in 2013 and held $42,000 of the 2013 transfers until 2014. On consolidated financial statements for 2013, determine the balances that would appear for the following accounts: Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary?s Net Income B. Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost. Intra-entity transfers were $50,000 in 2012 and $80,000 in 2013. Of this inventory, $21,000 of the 2012 transfers were retained and then sold by Penguin in 2013, whereas $35,000 of the 2013 transfers was held until 2014. On consolidated financial statements for 2013, determine the balances that would appear for the following accounts: Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary?s Net Income C. Penguin sells Snow a building on January 1, 2012, for $80,000, although its book value was only $50,000 on this date. The building had a five-year remaining life and was to be depreciated using the straight line method with no salvage value. Determine the balances that would appear on consolidated financial statements for 2013 for the following accounts: Building (net) Operating Expenses Noncontrolling Interest on Subsidiary?s Net Income image text in transcribed

Penguin Corporation acquired 80 % of the outstanding voting stock of Snow Company on January 1, 2012, for $420,000 in cash and other consideration. At the acquisition date, Penguin assessed Snow's identifiable assets and liabilities at a collective net fair value of $525,000 and the fair value of the 20 percent noncontrolling interest was $105,000. No excess fair value over book value amortization accompanied the acquisition. The following selected account balances are from the individual financial records of these two companies as of December 31, 2013: Penguin Snow Sales $640,000 $360,000 Cost of Goods Sold 290,000 197,000 Operating expenses 150,000 105,000 Retained earnings, 1/1/13 740,000 180,000 Inventory 346,000 110,000 Buildings (net) 358,000 157,000 Investment income not given -0Each of the following problems is an independent situation: A. Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost. Intraentity transfers were $90,000 in 2012 and $110,000 in 2013. Of this inventory, Snow retained and then sold $28,000 of the 2012 transfers in 2013 and held $42,000 of the 2013 transfers until 2014. On consolidated financial statements for 2013, determine the balances that would appear for the following accounts: Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary's Net Income B. Assume the Penguin sells Snow inventory at a markup equal to 40 percent of cost. Intraentity transfers were $50,000 in 2012 and $80,000 in 2013. Of this inventory, $21,000 of the 2012 transfers were retained and then sold by Penguin in 2013, whereas $35,000 of the 2013 transfers was held until 2014. On consolidated financial statements for 2013, determine the balances that would appear for the following accounts: Cost of Goods Sold Inventory Noncontrolling Interest in Subsidiary's Net Income C. Penguin sells Snow a building on January 1, 2012, for $80,000, although its book value was only $50,000 on this date. The building had a five-year remaining life and was to be depreciated using the straight line method with no salvage value. Determine the balances that would appear on consolidated financial statements for 2013 for the following accounts: Building (net) Operating Expenses Noncontrolling Interest on Subsidiary's Net Income