Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please hurry, need these all asap... Pell Company acquires 8 0 % of Demers Company for $ 5 0 0 , 0 0 0 on

Please hurry, need these all asap...
Pell Company acquires 80% of Demers Company for $500,000 on January 1,2022. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired.
Demers earns income and pays dividends as follows:
202220232024
Net income $ 100,000 $ 120,000 $ 130,000
Dividends 40,00050,00060,000
Assume the equity method is applied.
Compute Pell's equity income from Demers for the year ended December 31,2024.
$98,400
$97,000
$104,000
$50,400
$56,000
2. Assume the equity method is applied.
Compute Pell's equity income from Demers for the year ended December 31,2023.
$96,000
$50,400
$90,400
$56,000
$89,000
3. Assume the partial equity method is applied.
Compute the noncontrolling interest in the net income of Demers at December 31,2024.
$14,000
$24,600
$20,400
$12,600
$26,000
4. Assume the initial value method is applied.
Compute the noncontrolling interest in the net income of Demers at December 31,2024.
$24,600
$12,600
$14,000
$26,000
$20,400
5. Assume the equity method is applied.
Compute the noncontrolling interest in the net income of Demers at December 31,2022.
$20,000
$10,600
$12,000
$18,600
$14,400
6. Assume the initial value method is applied.
Compute Pell's Investment in Demers at December 31,2024.
$620,000
$625,000
$592,400
$676,000
$500,000
7. Assume the equity method is applied.
Compute Pell's Investment in Demers account balance at December 31,2022.
$574,400
$548,000
$580,000
$542,400
$541,000
8. Assume the partial equity method is applied.
How much does Pell record as Income from Demers for the year ended December 31,2024?
$97,000
$56,000
$98,400
$104,000
$50,400
9. Assume the partial equity method is applied.
Compute the noncontrolling interest in Demers at December 31,2022.
$110,600
$100,000
$135,600
$114,000
$112,000
10. Assume the initial value method is applied.
Compute Pell's Investment in Demers at December 31,2023.
$500,000
$625,000
$572,000
$664,800
$592,400
11. Assume the initial value method is applied.
Compute the noncontrolling interest in the net income of Demers at December 31,2022.
$18,600
$14,400
$20,000
$12,000
$10,600

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_2

Step: 3

blur-text-image_3

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

College Accounting Chapters 1-26

Authors: Douglas J. McQuaig, Patricia A. Bille

6th Edition

0395796997, 978-0395796993

More Books

Students also viewed these Accounting questions

Question

Define intercultural conflict

Answered: 1 week ago