Question
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
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:
| 2022 | 2023 | 2024 | |
|---|---|---|---|
| Net income | $ 100,000 | $ 120,000 | $ 130,000 |
| Dividends | 40,000 | 50,000 | 60,000 |
- 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
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Introductory Accounting A Measurement Approach For Managers
Authors: Daniel P. Tinkelman
1st Edition
9781138956216
