Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Timothy Company acquired all of Jackeline Company's outstanding stock on January 1, 2021, for $280,200 in cash Jackeline had a book value of only $199,400

image text in transcribed
Timothy Company acquired all of Jackeline Company's outstanding stock on January 1, 2021, for $280,200 in cash Jackeline had a book value of only $199,400 on that date. However, equipment (having an eight-year remaining life) was undervalued by $56,000 on Jackeline's financial records. A building with a 20-year remaining life was overvalued by $15.900 In accounting for this investment, Timothy used the equity method. During 2021, Jackline reported net income of $42,000 and declared and paid dividends of $20.000 Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow Timothy Jackeline Revenues Operating $442,000 $167.000 Expenses 234,000 125.000 Equity in Jackeline Farnings Equipment (net) 398,000 57.000 Buildings (net) 285,000 70.000 Common Stock 290,000 57.600 Retained earnings 586,000 163,800 12/31/21 Determine the following account balances as of December 31, 2021 (Do not add dollar sign, do not add comma to your amounts round the answer to the whole number) L. Consolidated Net Income 2. Consolidated Equipment (net) 3. Consolidated Buildings (net) 4. Consolidated Goodwill (net) 3. Consolidated Retained Earnings, 12/31/21

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

9781285586618

Students also viewed these Accounting questions

Question

How to add colors and other style changes using graphic directives?

Answered: 1 week ago