Question
Tyler Company acquired all of Jasmine Companys outstanding stock on January 1, 2019, for $283,100 in cash. Jasmine had a book value of only $205,300
Tyler Company acquired all of Jasmine Companys outstanding stock on January 1, 2019, for $283,100 in cash. Jasmine had a book value of only $205,300 on that date. However, equipment (having an eight-year remaining life) was undervalued by $73,600 on Jasmines financial records. A building with a 20-year remaining life was overvalued by $16,300. Subsequent to the acquisition, Jasmine reported the following:
Net Income | Dividends Declared | |||||
2019 | $ | 68,700 | $ | 10,000 | ||
2020 | 80,400 | 40,000 | ||||
2021 | 35,800 | 20,000 | ||||
In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow:
Tyler Company | Jasmine Company | ||||||
Revenuesoperating | $ | (380,000 | ) | $ | (133,000 | ) | |
Expenses | 262,000 | 97,200 | |||||
Equipment (net) | 418,000 | 84,000 | |||||
Buildings (net) | 274,000 | 82,800 | |||||
Common stock | (290,000 | ) | (69,300 | ) | |||
Retained earnings, 12/31/21 | (415,000 | ) | (216,000 | ) | |||
Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.)
WHY IS MY ANSWER FOR D INCORRECT?
Answer is complete but not entirely correct. a. b. c. d. Investment in Jasmine Company Equity in Subsidiary Earnings Consolidated Net Income Consolidated Equipment (net) Consolidated Buildings (net) Consolidated Goodwill (net) Consolidated Common Stock Consolidated Retained Earnings, 12/31/21 Amounts $ 372,845 $ 27,415 $ 145,415 $ 550,445 $ 342,945 $ 20,500 $ 290,000 $ 415,000 e. f. g. h
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