wer-U&launchUrl=https%253A%252F% S The Income statements for Paste Company and its subsidiaries, Waste Company and Baste Company, were prepared for the year ended December 31, Yoar 9, and are shown below Parte Meste Income Sales $490,000 $350,00 $225,000 Dividend 63,750 159.cee Interest 30,000 Total income 583 250 236,000 Expenses Cost of Sales 320.00 181.00 General and administrative 113,000 68,000 49.000 Interest 30,000 I come tax 47.eee 95.000 Total expenses 45e,ece 376,600 225.000 Profit $100,750 $124.000 $. 11.00 Additional Information Paste purchased its 80% Interest in Waste on January 1, Year 4. On this date, Waste had a retained earnings balance of $60.000. and the acquisition differential amounting to $35.000 was allocated entirely to plant with an estimated remaining life of eight years. The plant is used exclusively for manufacturing goods for rosale. Paste purchased its 75% Interest in Baste on December 31, Year 6. On this date. had a retained earnings balance of $100,000. The acquisition differential amounting to $39,000 was allocated to goodwil, however, because Baste had failed to report adequate profits, the goodwill was entirely written off for consolidated purposes by the end of Year 8. Paste has established a policy that any Intercompany sales will be made at a gross profit rate of 30% On January 1 Year 9, the inventory of Paste contained goods purchased from Waste for $35.000 During Year 9. the following intercompany sales took place $ 110,000 190.000 170.000 Wird amounts the inventories of each of the most compentes contained here purchased on an intercompany basis in se, 42.000 Proy Next > On December 31, Year 9, the inventories of each of the three companies contained tems purchased on an intercompany basis in the following amounts: Paste tro Baste waste from Paste Baste from Maste $80,000 42.000 80,000 - In addition to its merchandising activities, Waste is in the office equipment rental business. Both Paste and Baste rent office equipment from Waste. General and administrative expenses for Paste and Baste include rent expense of $45,000 and $34,000. respectively During Year 6. Waste paid $30.000 Interest to Paste for Intercompany advances, All of Paste's dividend revenue pertains to its Investments in Waste and Baste Retained earnings at December 31, Year 9. for Paste, Waste, and Baste were $723750, $166,000, and $99.000, respectively Paste Company uses the cost method to account for its Investments, and uses tax allocation at a rate of 40% when it prepares consolidated financial statements. Required: (a) Prepare a consolidated Income statement for Year 9. (Leave no cells blank-be certain to enter"0" wherever required, Input all amounts as positive values. Omit sign in your response.) Paste Company Consolidated Income Statement for the Year Ended December 31 Year WY Paste Company uses the cost method to account for its Investments, and uses tax allocation at a rate of 40% when it prepares consolidated financial statements. Required (a) Prepare a consolidated Income statement for Year 9. (Leave no cells blank-be certain to enter "0" wherever required Inpus all amounts as positive values. Omit $ sign in your response) $ Paste Company Consolidated Income Statement for the Year Ended December 31, Year Sales Dividends Interest Rent Total income cost of Sales General and administrative Interest Income tax Total expenses Profit Attributable to Shareholders of Paste controlling Interests (b) Calculate consolidated retained earnings at December 31. Year 9. (Omit $ sign in your response.) Consolidated retained earnings December 31 Year 9 $ (c) Assume tha: Pastels a private company uses ASPE and chooses to use the souty method. Calculate its income from westments for Year 9. Omits sign in your response. Investment income from subsidiaries $ 0 The Income statements for Paste Company and its subsidiaries. Waste Company and Baste Company, were prepared for the year ended December 31, Year 9, and are shown below. Paste Maste Baste $490.00 63,750 $350,000 $236.000 150,00 30.000 583,250 See, eee 236,000 Income Sales Dividend Rent Interest Total income Expenses Cast of sales General and administrative Interest Income tax Total expenses Profit 320,000 113,000 149.eee 49,000 47 000 480,000 $183,750 183,000 68.ee 30,000 95,eee 376.ece $124,000 27,eee 225.000 $ 11,000 Additional Information Paste purchased its 80% Interest in Waste on January 1. Year 4. On this date. Waste had a retained earnings balance of $60.000, and the acquisition differential amounting to $35,000 was allocated entirely to plant with an estimated remaining life of eight years The plant is used exclusively for manufacturing goods for resale. Paste purchased its 75% Interest in Baste on December 31. Year 6. On this date. Baste had a retained earnings balance of $100,000 The acquisition differential amounting to $39.000 was allocated to goodwill however, because Baste had failed to report adequate profits, the goodwill was entirely written off for consolidated purposes by the end of Year 8. Paste has established a policy that any Intercompany sales will be made at a gross profit rate of 30 On January 1 Year 9. the inventory of Paste contained goods purchased from Waste for $35.000 During Year 9. the following Intercompany sales took place Pellet 110.000 190,00 170, PS - On December 31Year 9. the inventories of each of the three companies contained tems purchased on an intercommany basis in the following aments the following amounts WHILE of each of the three companies contained items purchased on an Intercompany basis in Paste from Baste Waste from Paste Baste from Waste $80,000 42.000 80,00 . In addition to its merchandising activities. Waste is in the office equipment rental business. Both Paste and Baste rent office equipment from Waste. General and administrative expenses for Paste and Baste include rent expense of $45,000 and $34.000. respectively During Year 6. Waste pald $30,000 interest to Paste for Intercompany advances All of Paste's dividend revenue pertains to its Investments in Waste and Baste Retained earnings at December 31, Year 9, for Paste, Waste, and Baste were $723.750, $166,000, and $99,000, respectively. Paste Company uses the cost method to account for its Investments, and uses tax allocation at a rate of 40% when it prepares consolidated financial statements. Required: (a) Prepare a consolidated Income statement for Year 9. (leave no cells blank - be certain to enter "o" wherever required Input all amounts as positive values. Omit S sign in your response.) Paste Company Consolidated Income Statement for the Year Ended December 31, Year 9 Sales Dends Interest Rent TOLICOS $ sales dilinistrative Tric TO ALLA Pa NO per 31, Year 3 Dividends Interest Rent Total income Cost of sales General and administrative Interest Income tax Total expenses Profit Attributable to: Shareholders of Paste Non-controlling Interests (b) Calculate consolidated retained earnings at December 31, Year 9. (Omit $ sign in your response.) Consolidated retained earnings December 31. Year 9 (c) Assume that Paste is a private company, uses ASPE, and chooses to use the equity method. Calculate its income from Investments for Year 9. (Omit S sign in your response.) Investment income from subsidiarles S (d) Not avallable in Connect. wer-U&launchUrl=https%253A%252F% S The Income statements for Paste Company and its subsidiaries, Waste Company and Baste Company, were prepared for the year ended December 31, Yoar 9, and are shown below Parte Meste Income Sales $490,000 $350,00 $225,000 Dividend 63,750 159.cee Interest 30,000 Total income 583 250 236,000 Expenses Cost of Sales 320.00 181.00 General and administrative 113,000 68,000 49.000 Interest 30,000 I come tax 47.eee 95.000 Total expenses 45e,ece 376,600 225.000 Profit $100,750 $124.000 $. 11.00 Additional Information Paste purchased its 80% Interest in Waste on January 1, Year 4. On this date, Waste had a retained earnings balance of $60.000. and the acquisition differential amounting to $35.000 was allocated entirely to plant with an estimated remaining life of eight years. The plant is used exclusively for manufacturing goods for rosale. Paste purchased its 75% Interest in Baste on December 31, Year 6. On this date. had a retained earnings balance of $100,000. The acquisition differential amounting to $39,000 was allocated to goodwil, however, because Baste had failed to report adequate profits, the goodwill was entirely written off for consolidated purposes by the end of Year 8. Paste has established a policy that any Intercompany sales will be made at a gross profit rate of 30% On January 1 Year 9, the inventory of Paste contained goods purchased from Waste for $35.000 During Year 9. the following intercompany sales took place $ 110,000 190.000 170.000 Wird amounts the inventories of each of the most compentes contained here purchased on an intercompany basis in se, 42.000 Proy Next > On December 31, Year 9, the inventories of each of the three companies contained tems purchased on an intercompany basis in the following amounts: Paste tro Baste waste from Paste Baste from Maste $80,000 42.000 80,000 - In addition to its merchandising activities, Waste is in the office equipment rental business. Both Paste and Baste rent office equipment from Waste. General and administrative expenses for Paste and Baste include rent expense of $45,000 and $34,000. respectively During Year 6. Waste paid $30.000 Interest to Paste for Intercompany advances, All of Paste's dividend revenue pertains to its Investments in Waste and Baste Retained earnings at December 31, Year 9. for Paste, Waste, and Baste were $723750, $166,000, and $99.000, respectively Paste Company uses the cost method to account for its Investments, and uses tax allocation at a rate of 40% when it prepares consolidated financial statements. Required: (a) Prepare a consolidated Income statement for Year 9. (Leave no cells blank-be certain to enter"0" wherever required, Input all amounts as positive values. Omit sign in your response.) Paste Company Consolidated Income Statement for the Year Ended December 31 Year WY Paste Company uses the cost method to account for its Investments, and uses tax allocation at a rate of 40% when it prepares consolidated financial statements. Required (a) Prepare a consolidated Income statement for Year 9. (Leave no cells blank-be certain to enter "0" wherever required Inpus all amounts as positive values. Omit $ sign in your response) $ Paste Company Consolidated Income Statement for the Year Ended December 31, Year Sales Dividends Interest Rent Total income cost of Sales General and administrative Interest Income tax Total expenses Profit Attributable to Shareholders of Paste controlling Interests (b) Calculate consolidated retained earnings at December 31. Year 9. (Omit $ sign in your response.) Consolidated retained earnings December 31 Year 9 $ (c) Assume tha: Pastels a private company uses ASPE and chooses to use the souty method. Calculate its income from westments for Year 9. Omits sign in your response. Investment income from subsidiaries $ 0 The Income statements for Paste Company and its subsidiaries. Waste Company and Baste Company, were prepared for the year ended December 31, Year 9, and are shown below. Paste Maste Baste $490.00 63,750 $350,000 $236.000 150,00 30.000 583,250 See, eee 236,000 Income Sales Dividend Rent Interest Total income Expenses Cast of sales General and administrative Interest Income tax Total expenses Profit 320,000 113,000 149.eee 49,000 47 000 480,000 $183,750 183,000 68.ee 30,000 95,eee 376.ece $124,000 27,eee 225.000 $ 11,000 Additional Information Paste purchased its 80% Interest in Waste on January 1. Year 4. On this date. Waste had a retained earnings balance of $60.000, and the acquisition differential amounting to $35,000 was allocated entirely to plant with an estimated remaining life of eight years The plant is used exclusively for manufacturing goods for resale. Paste purchased its 75% Interest in Baste on December 31. Year 6. On this date. Baste had a retained earnings balance of $100,000 The acquisition differential amounting to $39.000 was allocated to goodwill however, because Baste had failed to report adequate profits, the goodwill was entirely written off for consolidated purposes by the end of Year 8. Paste has established a policy that any Intercompany sales will be made at a gross profit rate of 30 On January 1 Year 9. the inventory of Paste contained goods purchased from Waste for $35.000 During Year 9. the following Intercompany sales took place Pellet 110.000 190,00 170, PS - On December 31Year 9. the inventories of each of the three companies contained tems purchased on an intercommany basis in the following aments the following amounts WHILE of each of the three companies contained items purchased on an Intercompany basis in Paste from Baste Waste from Paste Baste from Waste $80,000 42.000 80,00 . In addition to its merchandising activities. Waste is in the office equipment rental business. Both Paste and Baste rent office equipment from Waste. General and administrative expenses for Paste and Baste include rent expense of $45,000 and $34.000. respectively During Year 6. Waste pald $30,000 interest to Paste for Intercompany advances All of Paste's dividend revenue pertains to its Investments in Waste and Baste Retained earnings at December 31, Year 9, for Paste, Waste, and Baste were $723.750, $166,000, and $99,000, respectively. Paste Company uses the cost method to account for its Investments, and uses tax allocation at a rate of 40% when it prepares consolidated financial statements. Required: (a) Prepare a consolidated Income statement for Year 9. (leave no cells blank - be certain to enter "o" wherever required Input all amounts as positive values. Omit S sign in your response.) Paste Company Consolidated Income Statement for the Year Ended December 31, Year 9 Sales Dends Interest Rent TOLICOS $ sales dilinistrative Tric TO ALLA Pa NO per 31, Year 3 Dividends Interest Rent Total income Cost of sales General and administrative Interest Income tax Total expenses Profit Attributable to: Shareholders of Paste Non-controlling Interests (b) Calculate consolidated retained earnings at December 31, Year 9. (Omit $ sign in your response.) Consolidated retained earnings December 31. Year 9 (c) Assume that Paste is a private company, uses ASPE, and chooses to use the equity method. Calculate its income from Investments for Year 9. (Omit S sign in your response.) Investment income from subsidiarles S (d) Not avallable in Connect