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TLINICAL Return to counte Supore My Sunston resumen Equity Method and Eliminating Entries Three Years After Acquisition Puffin Industries acquired all of Sunset Coast Digital

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TLINICAL Return to counte Supore My Sunston resumen Equity Method and Eliminating Entries Three Years After Acquisition Puffin Industries acquired all of Sunset Coast Digital stock on January 1, 2014. for 55.250,000, 13,150,000 in excess of book At that time. Sunet Conventory $750,000 and its plant assets (10 year life were overvalued by $1.500,000. The remaining exces of cost over hoek value is attributed to undervalued berleberg over 20 years. Sunset Coast depreciates plant assets and amortis intangibles by the straight line method During 2014 and 2015. Sunet Coast reported to ref. and 50 percent in dividends. Puffin carries its investment in Sunset Coast using the complete equity method Sunset Contes inventory match your unit was by and Coast's reported net income for 2016 was $300,000, and dividends totaled so percent of reported income a. Compute Puffin's 2016 equity in net income of Sunset Comt, 0 b. Compute the balance in the investment in Sunset Coast account at December 31, 2016, after all equiry methods have been boond, c. Prepare the working paper eliminating entries needed in consolidation at December 11, 2016. Consolidation Journal Description Ref. Debit Credit o 0 investment in Sunset Coast 0 0 0 0 0 0 IRI O 0 Inventory Pant assets.net 0 0 O 0 . G O b. Compute the balance in the investment in Sunset Contactourt at December 31, 2016, after wil equity method entries we been bootel, 0 6. Prepare the working paper eliminating entries needed in comodation at December 11, 2016 Consolidation Journal Description Debit Credit Rer. 10 Investment in Sunset Coast a 13 . 0 IRI 0 0 Inventory Plantas, net D 0 0 101 Amortation expense Depreciation expense 0 0 d. If Puffin reports $900,000 net income from its own operations in 2016, what is consolidated net income for 2010 $0 Check nem

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