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Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value

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Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $470,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $5,000 per year. Placid Lake's 2021 net Income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $370,000. Scenic reported net Income of $180,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $47,000. At the end of 2021, selected figures from the two companies balance sheets were as follows: Placid Lake Scenic Inventory $210,eee $ 97,880 Land 670,008 278,000 Equipment (net) 470,000 378,000 During 2020, Intra-entity sales of $110.000 (original cost of $56,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2020 in 2021. $160,000 in Intra-entity sales were made with an original cost of $66,000 of this merchandise, 20 percent had not been resold to outside partes by the end of the year. Each of the following questions should be considered as an independent situation for the year 2021 a. What is consolidated net income for Placid Lake and its subsidiary? b. If the intra-entity sales were upstream, how would consolidated net income bo allocated to the controlling and noncontrolling Interest? c. If the intra-entity sales were downstream, how would consolidated net income be located to the controlling and noncontrolling Interest? d. What is the consolidated balance in the ending Inventory account? Assume that no intra-entity inventory sales occurred between Placid Loke and Scenic Instead, in 2020, Sconde solet land costing $37,000 to Placid Lake for $64.000 On the 2021 consolidated balance sheet what value should be reported for land? 1.1. Assume that no intro-entity inventory or and sales occurred between Placid Lake and Scenic Instead, on January 1, 2020, Scenic sold equipment that originally cost $170.000 but had a $67,000 book value on that date to Placid Lake for $94.000. At the time of sale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021, consolidation of these two companion to eliminate the impact of the intra-entity transfer 1-2. Assume that no intro-entity inventory of land sales occurred between Placid Lake and Scenic. Instead, on January 2070 Scenic sold equipment that original COM $170,000 but had a $67,000 book value on that date) to Placid Lake for $94.000. At the time of sale, the equipment had a remaining useful life of five years For 2021, what is the noncontrolling interests share of Scenic's not Incomen questom RY Reg A Reg B and Reg D and E Reg F1 Reg F2 What is consolidated net Income for Placid Lake and its subsidiary? Consolidated not income Reg B and c> Req A Pfaq B and C Reg D and E Reg F1 Req F2 b. If the Intra-entity sales were upstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? c. If the intra-entity sales were downstream, how would consolidated net income be allocated to the controlling and noncontrolling interest? Show less Controlling Interest Non-controlling Interest 6. Upstream Downstream Reg A Req B and C Reg D and E Reg Fi Reg F2 d. What is the consolidated balance in the ending Inventory account? e. Assume that no Intra-entity Inventory sales occurred between Placid Lake and Scenie. Instead, in 2020, Scenic sold land costing $37,000 to Placid Lake for $64,000. On the 2021 consolidated balance sheet, what value should be reported for land? Show less Consolidated vectory Consolidated and balance ssume that no Intra entity Inventory or land sales occurred between Placid Lake and Scenic. Instead, on YUMU bld equipment (that originally cost $170,000 but had a $67,000 book value on that date) to Placid Lake for $94,000. At the time of ale, the equipment had a remaining useful life of five years. What worksheet entries are made for a December 31, 2021) Consolidation of these two companies to eliminate the impact of the Intra-entity transfer? (ar no entry is required for a transaction/event, select "No Soumal entry required in the first account feld. Show less view transaction list transaction list Debit Credit No Transaction Accounts Retained amning - Scenic Equipment Accumulated depreciation 2 Accumulated depreciation Depreciation expense REGA Reg B and C Reg D and E Reg F1 Reg F2 Assume that no Intra-entity Inventory or land sales occurred between Placid Lake and Scenic. Instead, on January 1, 2020, Scenic sold equipment (that originally cost $170,000 but had a $67,000 book value on that date) to Placid Lake for $94,000. At the time of sale, the equipment had a remaining useful life of five years. For 2021, what is the noncontrolling Interest's share of Scenic's net income? Show less Not income attributable to noncontrolling interest

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