3. Using the same information in item2, determine the percent ofnoncontrolling interest ownership inS Company as of December 31, 2019. 2. Using the information provided inthe image below, determine thecarrying amount of the inventory thatS Company purchased from PCompany in the December 31, 2019consolidated Statement of financialposition. *Selected information from the separate and consolidated statements of financial position and statements ofcomprehensive income of P Company. and its subsidiary, S Company., as of December 31, 2019, and for theyear then ended is as follows:P CompanyS CompanyConsolidatedStatement of financial position accountsAccounts receivable. .Inventory....Investment in S Co...Goodwill.P 42,00050,000P 26,000P19,00025.00030,00067.000Noncontrolling interest..Stockholders' equity..30,00010,000154,000154,00050,000Statement of comprehensive income accountsRevenues...Cost of goods sold.Gross profit.P300,000225.00075,000P200,000P140,000150,00050,000110,00030,000Equity in earnings of S Co.Net income..P9.000P36,000P20,000P36,000Additional informationDuring 2019. P Company sold goods to S Company at the same markup on cost that P Co usesfor all sales. At December 31, 2019, S Co had not paid for all of these goods and still held 50% ofthem in inventory.P Company acquired its interest in S Company five years eartlier (as of December 31, 2019)

Name: 3. Using the same information in item2, determine the percent ofnonco
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Description: 3. Using the same information in item2, determine the percent ofnoncontrolling interest ownership inS Company as of December 31, 2019. 2. Using the information provided inthe image below, determine thecarrying amount of the inventory thatS Company p

As per the given information in the above question we must determine the carrying amount of the…

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-. Using the sa , determine t oncontrolling

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 12GI: Consider each of the following independent situations. Should a company report the goods in its...

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2. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position.
Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position. Using the same information, determine the percent of noncontrolling interest ownership in S Company as of December 31, 2019.
a. Using the information provided in the image below, determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position b. Using the same information in item 2, determine the percent of noncontrolling interest ownership in S Company as of December 31, 2019.
Determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position.
a. Determine the carrying amount of the inventory that S Company purchased from P Company in the December 31, 2019 consolidated Statement of financial position. b. Determine the percent of noncontrolling interest ownership in S Company as of December 31, 2019.
Selected information from the separate and consolidated statements of financial position and statements of comprehensive income of Pau de Arco, Inc. and its subsidiary, Kati Alis Co., as of December 31, 20X9, and for the year then ended is as follows: (see image below) In Pau de Arco's December 31, 20X9, consolidated Statement of financial position, the carrying amount of the inventory that Kati Alis purchased from Pau de Arco.
During 2020, an entity decided to change from the FIFO method of inventory valuation to the weighted average method. Inventory balances under each method were: FIFO Weighted Average December 31, 2017 4,500,000 5,400,000 December 31, 2018 7,800,000 7,100,000 December 31, 2019 8,300,000 7,800,000 The income tax rate is 30%. What amount should be reported as the effect of this accounting change in the statement of Retained Earnings for 2020? 350,000 decrease 350,000 increase 490,000 decrease 490,000 increase
Consolidated inventory balance is composed of the book values of the parent’sand the subsidiary’s inventory__________. a.plus/minus the effects of the difference between book value and fair value of thesubsidiary’s inventory balance on the date of acquisition that remains unsold as of yearend, minus the unrealized profit on ending inventory, plus the realized profit on beginninginventoryb.plus/minus the effects of the difference between book value and fair value of thesubsidiary’s inventory balance on the date of acquisition that remains unsold as of yearend, and minus the unrealized profit on ending inventoryc.plus/minus the effects of the difference between book value and fair value of thesubsidiary’s inventory balance on the date of acquisition that remains unsold as of yearendd.and nothing else
Splish Inc. provided the following information for the year 2020. $ Retained earnings, January 1, 2020 Administrative expenses Selling expenses Sales revenue Cash dividends declared Cost of goods sold Loss on discontinued operations Rent revenue Unrealized holding gain on available-for-sale debt securities Income tax applicable to continuing operations Income tax benefit applicable to loss on discontinued operations Income tax applicable to unrealized holding gain on available-for-sale debt securities 756,000 302,400 378,000 2,394,000 100,800 1.071,000 138,600 129,402 21,420 235,620 76,230 2,520 SPLISH, INC. Income Statement For the Year Ended December 31, 2020 Revenues Sales Revenue $ 2394000 Rent Revenue 100800 Total Revenues 2494800 Expenses Cost of Goods Sold 1071000 Selling Expenses 378000 Administrative Expenses 302400 Total Expenses Income From Continuing Operations Before Income Tax Income From Continuing Operations Less : Applicable Income Tax Reduction Income From Continuing…
During 2022, Emerald Inc. decided to change from FIFO method of inventory valuation to the weighted average method. January 1 inventory under FIFO 7,100,000January 1 inventory under weighted average 7,700,000December 31 inventory under FIFO 7,900,000December 31inventory under weighted average 8,300,000 In the statement of retained earnings for 2022, what amount should be reported as the pretax cumulative effect of this accounting change?A. 1,000,000 additionB. 1,000,000 deductionC. 600,000 deductionD. 600,000 addition
Below is the net income of New Girl Instrument AG, a private company, computed under the two inventory methods using a periodic system. FIFO Average-Cost 2017 $26,000 $23,000 2018 30,000 25,000 2019 29,000 27,000 2020 34,000 30,000 (ignore tax considerations) Required: a. Assume that in 2020 New Girl decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2020, and show net income reported for 2017, 2018, 2019, and 2020. b. Assume that in 2020 New Girl, which had been using the average-cost method since beginning operations in 2017, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2020, and show net income reported for 2017, 2018, 2019, and 2020.
Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin’s intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. 2020 2021 2022 Purchases by Philbin $ 8,000 $ 12,000 $ 15,000 Ending inventory on Philbin’s books 1,200 4,000 3,000 Assume the equity method is used. The following data are available pertaining to Anderson’s income and dividends. 2020 2021 2022 Anderson’s net income $ 70,000 $ 85,000 $ 94,000 Dividends paid by Anderson 10,000 10,000 15,000 For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2020 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2020 intra-entity transfer of merchandise?