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Several years ago, Swanson Incorporated acquired an 8 0 % interest in Haverford Company. The book values of Haverford's asset and liability accounts at that
Several years ago, Swanson Incorporated acquired an interest in Haverford Company. The book values of Haverford's asset and liability accounts at that time were considered to be equal to their fair values. Swansons acquisition value corresponded to the underlying book value of Haverford so that no allocations or goodwill resulted from the transfer.Several years ago, Swanson Incorporated acquired an interest in Haverford Company. The book values of Haverford's asset
and liability accounts at that time were considered to be equal to their fair values. Swanson's acquisition value corresponded to the
underlying book value of Haverford so that no allocations or goodwill resulted from the transfer.
The following selected account balances were from the individual financial records of these two companies as of December
:
Assume that Haverford sold inventory to Swanson at a markup equal to of cost Intraentity transfers were $ in
end $ in Of this inventory, $ of the transfers were retained and then sold by Swanson in whereas
$ of the transfers were held until
Requlred:
For the consolidated financial statements for determine the balances that would appear for the following accounts: i Cost
ff Goods Sold; ii Inventory; and iii Net income attributable to the noncontrolling interest.
The following selected account balances were from the individual financial records of these two companies as of December :
Swanson Haverford
Sales $ $
Cost of goods sold
Operating expenses
Retained earnings,
Inventory
Buildings net
Investment income not given
Assume that Haverford sold inventory to Swanson at a markup equal to of cost Intraentity transfers were $ in and $ in Of this inventory, $ of the transfers were retained and then sold by Swanson in whereas $ of the transfers were held until
Required:
For the consolidated financial statements for determine the balances that would appear for the following accounts: i Cost of Goods Sold; ii Inventory; and iii Net income attributable to the noncontrolling interest.
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