Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please give detail step by step to numbers and conclusion Complete this question by entering your answers in the tabs below. a. What balance does

Please give detail step by step to numbers and conclusion

image text in transcribed

image text in transcribedimage text in transcribed Complete this question by entering your answers in the tabs below. a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? Prepare entry C for the beginning of the Retained Earnings account on a December 31,2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 11,300 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $126,000. However, ts equipment (with a five-year remaining life) was undervalued by $8,200 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $35,300, although no value had been recorded on Turner's books. The customer ist had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: The following balances come from the individual accounting records of these two companies as of December 31, 2021: a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method

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

Management Accounting Text Problems And Cases

Authors: M. Y. Khan, P K Jain

7th Edition

9352606787, 978-9352606788

More Books

Students also viewed these Accounting questions

Question

a. What is the title of the position?

Answered: 1 week ago

Question

How does your message use nonverbal communication?

Answered: 1 week ago

Question

What reactive strategies might you develop?

Answered: 1 week ago