4. On January 1, 2017, the Z. Corporation acquired a 20% interest in D Company by purchasing 4,800 shares of its 24,000 outstanding shares of common stock. The acquisition price was $30 per share. On the date of purchase, D Company's net assets were as follows: Book Value $ 60,000 160,000 $220,000 Total liabilities $80,000 During 2017, D Company earned income of $70,000 and paid dividends of $18,000. The depreciable assets have a ten-year remaining life and no residual value. Nondepreciable assets Depreciable assets Total assets Fair Value $ 74,000 196,000 $270,000 $ 80,000 Difference $14,000 36.000 $50,000 Required: Prepare all of the journal entries on Z Corporation's books to record the acquisition and subsequent events in 2017 related to the investment in D Company.
Q: Sunland Corporation is a private company with a defined benefit pension plan. The following…
A: Pension is defined as the amount collected from the employee during his term of employment. The same…
Q: Sudoku Company issues 34,000 shares of $7 par value common stock in exchange for land and a…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: An investment center manager is considering three possible investments. The company's required…
A: The question is related to Ratio Analysis. Return on Investment is a performance measure of…
Q: Equivalent Units of Conversion Costs
A: The production costs required to convert raw materials into finished goods are known as conversion…
Q: ces 1. Classify each cost and its amount as either product or period. The first cost is completed as…
A: Product cost is the total cost incurred in the manufacturing of product during the period. It…
Q: Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales…
A: The contribution margin is calculated as the difference between the sales and variable costs. The…
Q: uld last for eight years and have annual maintenance costs of $260 per year for $370. also last for…
A: In Net present value alternative analysis, the alternative with the lowest NPV is selected. NPV is…
Q: Which of the following are financial statement frauds? Select which three options are correct. A.…
A: Financial statements frauds involves intentional misapplication of accounting principles related…
Q: What is the future value on December 31, Year 11, of 20 cash flows of $15,000 with the first cash…
A: The future value (FV) is a financial concept that represents the value of a sum of money at a…
Q: Problem G: Prepare a bank reconciliation for Jamboree Enterprises for the month ended November 30…
A: The bank reconciliation statement is prepared to equate the balances of the cash book and pass book…
Q: Determine the adjusted cash balance per bank for Sheryl's Packaging on November 30, from the…
A: In order to compute the adjusted cash balance from the Bank Reconciliation Statement (BRS)by follow…
Q: Cash Flow from Financing Activities Using the information for the Seville Corporation, calculate the…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: our boss approaches you in mid-December and requests that you pay certain employees their gross pay…
A: The process of figuring out and paying wages or salaries to employees for their labor within a firm…
Q: Required Information [The following information applies to the questions displayed below.] At the…
A: The costs incurred bringing the asset to the place of use and incurring expenses for making it ready…
Q: The operations vice-president of the Regal Bank of Canada, Kristin Wu, has been interested in…
A: Under the activity based costing the first stage allocation is distributed to various activities…
Q: From the postings in the accounts, indicate how the information is reported by preparing a partial…
A: Cash flows from operating activities indicate the cash generated by the operation's income is used…
Q: The following is the trial balance of Perkasa Enterprise as of 31 December 2023: DEBIT (RM)…
A: There are three statements of the organization which show different financial statements.1. Income…
Q: Hazlett & Family is organized into two geographic markets Northern and Southern. The company makes…
A: The contribution margin is the difference between the revenue generated during the period and the…
Q: A granary allocates the cost of unprocessed wheat to the production of feed, flour, and starch. For…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Prepare the lower part of the income statement, beginning with the $1,530,000 income from continuing…
A: An income statement is a financial statement that is prepared at the end of the year to reflect the…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: Cost allocationCost allocation is the allocation of the cost of service departments to the…
Q: s
A: Taxable income refers to the earnings of an individual, company, etc. which is subject to tax…
Q: Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the…
A: In simple terms, "taxable" means that a part of income or property is liable to government taxes. It…
Q: REQUIRED Calculate the following from the information provided below: 3.1.1 Break-even value using…
A: The break-even sales are calculated as the fixed costs divided by the contribution margin ratio. The…
Q: Shipbuilding Ltd. has a December 31 year end. On January 1, 2024, the company had the following…
A: Retained earnings are the amount that is paid as dividends to the shareholders after paying all the…
Q: REQUIRED Use the information provided below to answer the following questions independently: 3.2.1…
A: Income statement is a financial statement that shows profitability, total revenue and total…
Q: Compute taxable income of a charitable trust for the A.Y 2023-24 under the following cases:…
A: A charitable trust is a legal entity created with the primary purpose of managing and distributing…
Q: Calculate the following from the information provided below: 3.1.1 Break-even value using the…
A: Break even point is that point where all the sales is equal to total cost of production.It is the…
Q: Sunland Corporation is a private company with a defined benefit pension plan. The following…
A: According to the question given, we need to determine the impact of the pension plan on the pension…
Q: The following condensed balance sheet is for the partnership of Ludolf, Sambal, and Urad, who share…
A: According to the question given, we need to prepare the partnership liquidation statement, and, how…
Q: Tane Temps, a large labo actor, supplies contract year, Maine supply 88,000 costs are $10 per hour,…
A: Variable costs are costs that varies with the change in the level of output.Fixed costs are costs…
Q: Exercise 16-27 (Algo) Sales Activity Variance (LO 16-3) The master budget at Cherrylawn Corporation…
A: Sales activity variance is the difference between flexible budget and master budget. Flexible…
Q: The following data were drawn from the records of Fanning Corporation. Planned volume for year…
A: The term "variance" describes the discrepancy between an actual and an expected outcome. Variance…
Q: Layton Company purchased tool sharpening equipment on October 1 for $39,960. The equipment was…
A: Lets understand the basics.In straight line basis, depreciation is calculated in equal installments…
Q: Required: Prepare a statement of partnership liquidation to determine the amount of cash that Bell…
A: According to the question given, we need to prepare the statement of liquidation.Partnership…
Q: Dividends Per Share Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as…
A: Cumulative Preferred Stock is one of the type of preference shares in which it is mandatory for…
Q: Bramble Company has five employees participating in its defined benefit pension plan. Expected years…
A: In years of service method, amortization is made on the basis of total of future years of service…
Q: User During the 2023 income year, Lance McGuinness (a non-resident taxpayer) received the following…
A: Australian taxable income includes income earned in Australia, such as wages or salary for work…
Q: Bhaskar purchased a new factory building and land on September 10, 2021, for $3,700,000. ($500,000…
A: Cost recovery deductions refer to the allowable tax deductions that businesses can claim over time…
Q: The partnership of Garcia, Iglesias, and Kassablan was formed several years ago as a local tax…
A: It is an agreement between two or more parties to conduct the business and share the profits and…
Q: Milar Corporation makes a product with the following standard costs: standard Quantity or Hours 7.7…
A: Direct Material Quantity Variance reflects the difference between actual and expected quantities of…
Q: $456,000 36,480 27,360 56,700 78,300 15, 800 1,500 42,600 74,900 42,400 60,000
A: Inventory, based on its intended use and where it is in the manufacturing or distribution process.…
Q: Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Norr and Caylor established a partnership on January 1, 2019. Norr invested cash of $100,000 and…
A: Partnership:Partnership is an entity where minimum of two individuals agree to carryover the…
Q: Niles and Marsha adopted an infant boy (a U.S. citizen). They paid $15,500 in 2021 for…
A: Modified AGI is also referred to as modified adjusted gross income that is computed after…
Q: For each of the unrelated transactions described below, present the entries required to record each…
A: A bond is a fixed-rate instrument issued to represent to an advance made by a financial specialist…
Q: es A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The…
A: The objective of this question is to prepare a predistribution plan for the liquidation of a…
Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…
A: The payments and bonuses that employees receive in addition to their normal income or salaries are…
Q: a. Determine the budgeted cell conversion cost per hour. If required, round to the nearest dollar.…
A: Conversion cost refers to the cost that is required to be incurred for converting the raw materials…
Q: Hiroole Corporation prepares an aging schedule for its accounts receivable at the end of each month…
A: Bad debts expense is recognized in the books of the company when a debtor is unable or unwilling to…
Step by step
Solved in 3 steps
- prepare of the related journal entries. On 1 January 2017, FIBERBOATS acquired 100% of BELL Corporation. FIBERBOATS issued 50,000 shares of its BD0.600 par ordinary shares, with a market price of BD0.400 on the date the acquisition was announced and BD0.800 on the date the acquisition was completed, for all of BELL Corporation ordinary shares. The book value of net assets of BELL Corporation at the date of acquisition was BD10,000. On that date, the fair value of BELL Corporation assets and liabilities equalled their respective carrying amounts with the exception of property, plant and equipment (PPE) that exceeded its book value by BD120,000. The fair value of BELL’s identifiable intangibles (in-process research and development) is BD70,000. The in-process research and development will be amortized over 5 years.Pineapple Company acquired an 80% interest in Samsung Company for $272,000 cash on January 1, 2018. Samsung had the following Balance Sheet on the date of acquisition: Assets $ Liabilities $ Accounts receivable 90,000 Accounts payable 50,000 Depreciable fixed asstes 200,000 Bonds payable 50,000 Land 50,000 Discount on bonds payable (1,620) Goodwill 10,000 Comm stock ($10 par) 100,000 Retained Earnings 151,620 Total Asstes 350,000 Total liabilities & Equity 350,000 The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fairvalue of $260,000. The Depreciable Assets have a 10 year remaining life.Samsung sold a piece of Land to Pineapple for $60,000 on January 1, 2019. It cost Samsung $50,000 to purchasethe land.On January 1, 2020, Samsung held merchandise acquired from Pineapple for $20,000. This beginning inventoryhad an applicable gross profit of 40%. During 2020, Pineapple sold $60,000 worth of merchandise…9 On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices 66,000 Cannot be determined 56,250 68,000
- 3 On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. How much is the gain on acquisition? Group of answer choices 48,750 47,000 58,750 39,000Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2015, Sea-Breeze had the following assets and liabilities:The companies’ financial statements for the year ending December 31, 2018, follow:Answer the following questions:a. How can the accountant determine that the parent has applied the initial value method?b. What is the annual excess amortization initially recognized in connection with this acquisition?c. If the parent had applied the equity method, what investment income would the parent have recorded in 2018?d. What amount should the parent report as retained earnings in its January 1, 2018, consolidated balance sheet?e. What is consolidated net income for 2018 and what amounts are attributable to the controlling and noncontrolling interests?f. Within consolidated statements at January 1,…Payday Company acquired an 80% interest in Sunday Company for $272,000 cash on January 1, 2018. Sunday had the following Balance Sheet on the date of acquisition: Sunday Company Balance Sheet January 1, 2018 Assets ($) Liabilities (S) 90,000 Accounts Payable 200,000 Bonds Payable 50,000 Discount on Bonds Payable 10,000 Common Stock ($10 par) Retained Earnings 350,000 Total Liabilities & Equity Accounts Receivable 50,000 50,000 Depreciable Fixed Assets Land (1,620) 100,000 Goodwill 151,620 Total Assets 350,000 The excess of the price paid over book value is attributable to the Depreciable Fixed Assets, which have a fair value of $260,000. The Depreciable Assets have a 10-year remaining life. Sunday sold a piece of Land to Payday for $60,000 on January 1, 2019. It cost Sunday $50,000 to purchase the land from an external party. On January 1, 2020, Sunday held merchandise acquired from Payday for $20,000. This beginning inventory had an applicable gross profit of 40%. During 2020, Payday…
- On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices Cannot be determined 66,000 56,250 68,000 PreviousNextOn January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. How much is the gain on acquisition?On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,281,500 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash $ 40,600 Accounts payable $ 1,641,600 Accounts receivable 124,000 Inventory 141,000 Equipment (net) 1,990,000 Common stock 800,000 Trademarks 1,040,000 Retained earnings 894,000 Total assets $ 3,335,600 Total liabilities and equity $ 3,335,600 At the acquisition date, the book values of Stylene’s assets and liabilities were generally equivalent to their fair values except for the following assets: Asset Book Value Fair Value RemainingUseful Life Equipment $ 1,990,000 $ 2,145,000 8 years Customer lists 0 196,000 4 years Trademarks 1,040,000 1,121,500 indefinite During the next two years, Stylene has the following income and dividends in its own separately prepared financial…
- D. On May 31, 2020, Roddick Company paid $3,400,000 to acquire all of the ordinary shares of Bolt Corporation, which became a division of Roddick. Bolt reported the following statement of financial position at the time of the acquisition: Equity $2,500,000 Non-current assets $2,700,000 Non-current liabilities 500,000 Current assets 900,000 Current liabilities 600,000 Total assets $3,600,000 Total equity and liabilities $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Bolt was $2,800,000. On December 31, 2020, Bolt reports the following statement of financial position information: Current assets $ 800,000 Non-current assets (including goodwill recognized in purchase) 2,400,000 Current liabilities (700,000) Non-current liabilities (500,000) Net assets $2,000,000 It is determined that the recoverable amount value of the…On January 1, 2015 ,Pub Corporation made a significant acquisition, purchasing 75 percent of Sub Corporation's outstanding voting stock for a total of $4,200,000. Sub Corporation's stockholders'equity at that time was made up of the following components (all values in thousands):Capital stock with a par value of $10: $2,000Additional paid-in capital: $1200Retained earnings as of December 31, 2014: $1500Total stockholders' equity: $4700The surplus fair value of the net assets obtained from this acquisition was allocated as follows: 10percent to underappreciated inventory (which was subsequently sold in 2015), 40 percent tounderappreciated plant assets with a remaining useful life of eight years, and the remaining 50 percentto goodwill.Fast forward to December 31, 2019, and we have the comparative trial balances for both PubCorporation and Sub Corporation.…2. Cinema Company acquired 75 percent of Movie Corporation's shares on December 31, 2015, at underlying book value of $98,000. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Movie Corporation. Movie's balance sheet on January 1, 2018, contained the following balances: Cash Accounts Receivable Inventory Buildings and Equipment Less: Accumulated Depreciation Total Assets $50,000 Accounts Payable 35,000 Bonds Payable 40,000 Common Stock 300,000 Additional Paid-In Capital (100,000) Retained Earnings $325,000 Total Liabilities and Equities $40,000 100,000 50,000 Prepare the entries recorded on the books of each company. 75,000 60,000 $325,000 On January 1, 2018, Movie acquired 3,500 of its own $2 par value comm on shares from Nonaffiliated Corporation for $6 per share.