Free reports sales of $150,000 of which $50,000 are intercompany. How much is Consolidated Sales ?
Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: (A) amount of equity method income would Matthew recognize in 2021 from its ownership interest in…
Q: Matthew owns 30 percent of the outstanding stock of Lindman and has the ability to significantly…
A: Stock Owned By Mathew in Lindman 30% Balance in Investment in Lindman as on 01-01-2015 3,98,000…
Q: Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and…
A: Consolidated Sales is the total sales of the group less inter company sales Consolidated Sales =…
Q: From the data given, compute the goodwill or gain from bargain purchase for the different items.…
A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…
Q: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: Workings: Mathew company owns 30% of voting stock in Lindman company. On January 1, 2018 Investment…
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Fair value of net identifiable assets = Fair value of identifiable assets - Fair value of…
Q: all owns 70% of Short. In 2020, Tall reports third party Purchases of $800,000 and Purchases from…
A: Consolidation - When an enterprise control another enterprise, in that case, the enterprises that is…
Q: Barker Company owns 80 percent of the outstanding voting stock of Walden Company. During the current…
A: The intra-entity transactions are the transactions about sale and purchase of assets between parent…
Q: Thompson owns 100% of Rollins and at December 31, 2012, its Investment in Rollins account stands at…
A: a. Date Account Titles Debit Credit Dec 31, 2012 Cash $2,500,000 Investment in Rollins…
Q: Pam Corporation owns 70 percent of Sun Company’s common stock, acquired January 1, 2017. Patents…
A: Consolidated financial statements are the financial statements of a corporation with multiple…
Q: Wang Acquires 100% of Chen on January 1,2010 and will operate Chen as a separate subsidairy. In the…
A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: On January 1, Intergen, Inc., invests $200,000 for a40 percentinterest in Ryan, a new jointventure…
A: The total return percentage on investment is total return divided by investments.
Q: The following are several figures reported for Allister and Barone as of December 31, 2021:…
A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…
Q: Nicolo manufacturing produced 10,000 Kitchen clocks in 2021 for P50 each and sold them to San Mig…
A: Consolidation In the consolidation parent company acquired the subsidiary company above the 50%…
Q: Choose the correct. Panner, Inc., owns 30 percent of Watkins and applies the equity method. During…
A: Gross profit = Sales - Cost = $90,000 - $54,000 = $36,000 Gross profit percentage = Gross profit /…
Q: RAM, Inc., acquired a 60 percent interest in LMU Company several years ago. During 2017, LMU sold…
A: Cost of Goods Sold - It the value of costs which are incurred in the transacting sales of goods or…
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Working note: Computation of fair value of the previously acquired 15% common stock of K Company:…
Q: ansa Co. acquired 60% interest in Arya on January 1, 2025 for $46,800 when Arya's net assets had a…
A: Consolidated Financial statements : When a company invests in another company for more than…
Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2018. Kim paid $10 million for…
A: Equity method is a method of recording The investment is recorded at the acquisition cost under…
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…
Q: Goddy Company owns 80% of the common stock of Morris, Inc. In the current year, Goddy reports sales…
A: Consolidated cost of goods which are sold comes after adding the cost of goods sold of subsidiary…
Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: Equity Method: It is a method applied when one company has 20% to 50% ownership in another company.…
Q: On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000.…
A: As Mentioned question number 03 to answer so we are only answering that.
Q: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: Gross profit rate=Sales price-CostSales price×100
Q: rittney owns 30% of Orange Company, a C-Corporation. Orange Company has $600,000 in operating income…
A: Gross income refers to the total sum of money earned or gained by an individual or an entity in the…
Q: Kim Company bought 30% of the shares of Phelps, Inc., at the start of 2021. Kim paid $10 million for…
A: Equity method is a method of recording The investment is recorded at the acquisition cost under…
Q: Matthew, Inc. owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: 1. What amount of equity method income would Matthew recognize in 2018 from its ownership interest…
Q: Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book…
A: Consolidated net income is the total income earned by the whole group of companies. Any unrealized…
Q: Tall owns 80% of Short. In 2019, Tall reports third party Purchases of $800,000 and Purchases from…
A: Consolidation Purchases: Consolidation method is used to combine the purchase of both the companies…
Q: Plumas, Inc., owns 75 percent of Santa Cruz Corporation. Both companies have been profitable for…
A: A deferred tax asset is created when a company makes an overpayment of taxes, which means tax paid…
Q: Hodge Co. owns 90 percent of the voting common shares of Bison Co. During 2022, Hodge had sales of…
A: Introduction Intercompany upstream sale of inventory occurs, the effect of this transaction is…
Q: Virginia Corp. owned all of the voting common stock of Stateside Co. Both companies use the…
A: A journal entry is made to record the financial transaction in the books of accounts.
Q: Big owns 60% of Little and at December 31, 2012, its Investment in Little account stands at…
A: Journal entry refers to posting of the transaction of the business into the books and it is the…
Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020,…
A: Unrealized Profit Upto 31/12/2020 Profit from Intra Activity = (110,000 -90,200) = 19,800 Closing…
Q: On January 1, 2021 ABC purchased 80% of the outstanding shares of DEF at a cost of $960,000. On that…
A: Non-controlling interest is the interest in the subsidiary entity of an entity other than the parent…
Q: Senpai Company acquires 15% of Kohai Company's common stock for P600,000 cash and carries the…
A: Total fair value on acquisition date = Purchase of 15% share + Purchase of 60% share + fair value of…
Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: Equity represents the capital of the company that is reported on the balance sheet of the company.
Q: Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for…
A: Cash flow statements are the statements that determine the inflow and outflow of cash from three…
Q: From the data given, compute the goodwill or gain from bargain purchase for the different items. If…
A: Calculation of Net Consideration paid: Calculation of Net Identifiable Asset:
Q: Claire Corporation owns 80% of Jerald, Inc. ordinary stock. During 2020, Claire sold Jerald for…
A: Claire Corporation owns 80% of Jerald, Inc. The intra-company sales would be eliminated from the sum…
Q: Hillsborough Country Outfitters, Inc., entered into an agreement for HCO Media LLC to exclusively…
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…
Q: Brandy Corporation owns 60 percent of Downer's voting shares. During 20X3, Brandy produced 50,000…
A: Working Notes: 1. Sales = Number of desks sold to Downer's * selling Price = 20,000 desks * $94 =…
Q: Huge owns 25% of Small and at January 1, 2020 has a balance in its Investment in Small of $400,000.…
A: Huge owns 25% of Small and has a significant influence. The significant influence means power to…
Q: Matthew, Inc., owns 30 percent of the outstanding stock of Lindman Company and has the ability to…
A: The acquisition takes place when one company acquires ownership title on another company in order to…
Q: hoco, Inc. acquires 15% of Cake Corporation on January 1, 2020, for $130,000 when the book value of…
A: Step 1 The purchase of 15% shares did not qualify as an investment in associate; therefore, the…
Q: Sanchez Company acquired inventories on June 1, 2021 from its 60% owned subsidiary, Black…
A: Answer - 229,700
Q: Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the…
A: Goodwill refers to the form of an intangible asset that reflects the overall reputation of the…
Q: Evan Company reports net income of $183,000 each year and declares an annual cash dividend of…
A: When a company's ownership stake in another company is worth 20–50 percent of the investee's stock,…
16. Davis owns 70% of Free. In 2020 Davis reports Sales of $200,000 which include
third party sales of $160,000 and intercompany sales of $40,000. Cost of Goods Sold for
Davis are $80,000. Free reports sales of $150,000 of which $50,000 are intercompany.
How much is Consolidated Sales ?
Thank you
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Davis owns 70% of Free. In 2020 Davis reports Sales of $200,000 which include third party sales of $160,000 and intercompany sales of $40,000. Cost of Goods Sold for Davis are $80,000. Free reports sales of $150,000 of which $50,000 are intercompany. How much is Consolidated Sales ?Gulko owns 60% of Larsen. In 2020 Gulko reports Sales of $4,000,000, which includes 3rd party sales of $3,500,000 and intercompany sales of $500,000. Larsen reports intercompany sales of $200,000 and total sales of $700,000. How much is Consolidated Sales.Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms to Safeco for $900,000. By the end of the year, Safeco had sold all but 500 of the locking mechanisms to outside parties. Padlock marks up the cost of its locking mechanisms by 60 percent in computing its sales price to affiliated and nonaffiliated customers. How much intra-entity profit remains in Safeco’s inventory at year-end?
- Brandy Corporation owns 60 percent of Downer's voting shares. During 20X3, Brandy produced 50,000 computer desks at a cost of $82 each and sold 20,000 of them to Draw for $94 each. Downer sold 14,000 of the desks to unaffiliated companies for $130 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $140 each. Both companies use perpetual inventory systems. Tax rate is 30 percent. Required What amounts of cost of goods sold did Brandy and Downer record in 20X3? What amount of cost of goods sold must be reported in the consolidated income statement for 20X3? Prepare the necessary journal entry to eliminate the intra-gorup sales and cost of goods sold.Goddy Company owns 80% of the common stock of Morris, Inc. In the current year, Goddy reports sales of $10,000,000 and cost of goods sold of $7,500,000. For the same period, Morris has sales of $200,000 and cost of goods sold of $160,000. During the year, Goddy sold merchandise to Morris for $60,000 at a price based on the normal markup. At the end of the year, Morris still possesses 30 percent of this inventory. Compute consolidated cost of goods so ld. Select one: a. $7,604,500. b. $7,500,000. c. $7,660,000. d. $7,615,000. e. $7,600,000.Tall owns 70% of Short. In 2020, Tall reports third party Purchases of $800,000 and Purchases from Short of $200,000. Short reports Purchases of $500,000, which includes $100,000 of Purchases from Tall. How much is consolidated Purchases
- Planner Corporation owns 60 percent of Schedule Company’s voting shares. During 20X3, Planner produced 29,000 computer desks at a cost of $96 each and sold 14,000 of them to Schedule for $108 each. Schedule sold 9,000 of the desks to unaffiliated companies for $134 each prior to December 31, 20X3, and sold the remainder in early 20X4 for $144 each. Both companies use perpetual inventory systems. Required: What amounts of cost of goods sold did Planner and Schedule record in 20X3? What amount of cost of goods sold must be reported in the consolidated income statement for 20X3? Prepare the worksheet consolidation entry or entries needed in preparing consolidated financial statements at December 31, 20X3, relating to the intercorporate sale of inventory.On January 1, Intergen, Inc., invests $200,000 for a40 percentinterest in Ryan, a new jointventure with two other partners, each investing $150,000 for 30 percent interests. Intergen plansto sell all of its production to Ryan, which will resell the inventory to retail outlets. The equitypartners agree that Ryan will buy inventory only from Intergen. Also, Intergen plans to use theequity methodfor financial reporting.During the year, Intergen expects to incur costs of $850,000 to produce goods with a final retailmarket value of $1,200,000. Ryan projects that, during this year, it will resell three-fourths ofthese goods for $900,000. It should sell the remainder in the following year.The equity partners plan a meeting to set the price Intergen will charge Ryan for its production.One partner suggests a transfer price of $1,025,000but is unsure whether it will result in anequitable return across the equity holders. Importantly, Intergen agrees that its total rate of return(including its…Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X8? Multiple Choice A. $2,963,000 B. $1,620,000 C. $2,765,000 D. $1,422,000
- Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. Based on the information given above, what amount of cost of goods sold must be eliminated from the consolidated income statement for 20X9? Multiple Choice A. $221,000 B.$1,422,000 C.$187,000 D.$2,963,000Barker Company owns 80 percent of the outstanding voting stock of Walden Company. During the current year, intra-entity sales amount to $100,000. These transactions were made with a gross profit rate of 40 percent of the transfer price. In consolidating the two companies, what amount of these sales would be eliminated?Huge owns 25% of Small and at January 1, 2020 has a balance in its Investment in Small of $400,000. Huge has significant influence. In 2020 Huge sells inventory (cost $60,000) to Small for $80,000. At the end of 2020, 30% of the inventory remains unsold. Small sells all the remaining inventory to third parties in 2021. During 2021, Huge sells inventory (cost $80,000) to Small for $100,000, with 60% of this inventory being sold by Small to third parties in 2021. Small sells all the remaining inventory to third parties in 2022. In 2021 Small reported $90,000 of net income and paid dividends of $20,000. What is the amount of Equity Income recognized in 2021 ?
