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please help me to solve this before 5pm, thanks!! Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $589,400 cash. Immediately after
please help me to solve this before 5pm, thanks!!
Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $589,400 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $511,100. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/20 Adams 422,000 589,400 761,100 (246,000) (350,000) (1,176,500) clay $ 273,000 0 458,000 (216,000) (150,000) (365,000) In 2020, Clay earns a net income of $70,800 and declares and pays a $5,000 cash dividend. In 2020, Adams reports net income from its own operations (exclusive of any income from Clay) of $129,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows: Revenues Expenses Investment income Retained earnings, 1/1/21 Dividends declared Common stock Current assets Investment in clay Equipment Liabilities Adams $ (442,000) 320,450 Not given Not given 0 (350,000) 727,000 Not given 674,600 (195,300) Clay $(274,000) 205,500 0 (430, 800) 8,000 (150,000) 318,000 0 501,800 (156,900) a. What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the Equity method Initial value method. Return to d. What is Adams's January 1, 2021, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the: Equity value method. Initial value method. e. What worksheet adjustment to Adams's January 1, 2021, Retained Earnings account balance is required if Adams accounts for its investment in Clay using the initial value method? t. Prepare the worksheet entry to eliminate Clay's stockholders' equity. 9. What is consolidated net income for 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. ReqA Reg B to D RegE and F Req What are the December 31, 2021, Investment Income and Investment in Clay account balances assuming Adams uses the: Investment Investment Income In Clay Equity method 54,500 Initial value method 8,000 Reg to > Answer is not complete. Complete this question by entering your answers in the tabs below. ReqA Req B to D Reg E and F ReqG b. What is the amount of Consolidated Expenses in its December 31, 2021, consolidated income statement under each of the following methods? c. What is the amount of Consolidated Equipment in its December 31, 2021, consolidated balance sheet under each of the d. What is Adams's January 1, 2021, Retained Earnings account balance assuming Adams accounts for its investment in Clay using the: Equity value method. Initial value method. Show less b. Consolidated Expense C. Consolidated Equipment d. Retained Earnings Equity method Initial value method Partial equity method Answer is not complete. Complete this question by entering your answers in the tabs below. Req B to D Reg A Reg E and F Req e. What worksheet adjustment to Adams's January 1, 2021, Retained Earnings account balance is required if Adams accounts f. Prepare the worksheet entry to eliminate Clay's stockholders' equity. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Show less No Date Accounts Dobit Credit the: stment in Equity value method. Initial value method. e. What worksheet adjustment to Adams's January 1, 2021, Retained Earnings account balance is required if Adams acco its investment in Clay using the initial value method? f. Prepare the worksheet entry to eliminate Clay's stockholders' equity. 9. What is consolidated net income for 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Req B to D Req E and F Reg G What is consolidated net income for 2021? Consolidated not income Step by Step Solution
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