just need the answer PLZ Determining ending consolidated balances in the second year following the acquisition—Cost method Assume a parent company acquired a subsidiary on January 1, 2015, for $2,086,000. The purchase price was $966,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $502,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows: Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales $8,318,750 $1,890,000 Assets Cost of goods sold (5,989,500) (1,089,000) Cash $1,567,280 $468,600 Gross profit 2,329,250 801,000 Accounts receivable 2,462,900 421,300 Equity income 37,400 - Inventory 3,376,850 540,650 Operating expenses (1,247,840) (546,900) Equity investment 2,086,000 - Net income $1,118,810 $254,100 Property, plant & equipment 17,189,920 1,000,450 Statement of retained earnings $26,682,950 $2,431,000 BOY retained earnings 5,801,070 937,750 Liabilities and stockholders' equity Net income 1,118,810 254,100 Accounts payable $1,217,920 $173,030 Dividends (262,570) (37,400) Accrued liabilities 1,447,270 226,270 Ending retained earnings $6,657,310 $1,154,450 Long-term liabilities 10,587,500 605,000 Common stock 925,060 121,000 APIC 5,847,890 151,250 Retained earnings 6,657,310 1,154,450 $26,682,950 $2,431,000 At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answers. a. Sales Answer b. Investment income Answer c. Operating expenses Answer d. Inventories Answer e. Equity investment Answer f. Property, plant & equipment, net Answer
i just need the answer PLZ
Determining ending consolidated balances in the second year following the acquisition—Cost method
Assume a parent company acquired a subsidiary on January 1, 2015, for $2,086,000. The purchase price was $966,200 in excess of the
Parent | Subsidiary | Parent | Subsidiary | |||
---|---|---|---|---|---|---|
Income statement | Balance sheet | |||||
Sales | $8,318,750 | $1,890,000 | Assets | |||
Cost of goods sold | (5,989,500) | (1,089,000) | Cash | $1,567,280 | $468,600 | |
Gross profit | 2,329,250 | 801,000 | Accounts receivable | 2,462,900 | 421,300 | |
Equity income | 37,400 | - | Inventory | 3,376,850 | 540,650 | |
Operating expenses | (1,247,840) | (546,900) | Equity investment | 2,086,000 | - | |
Net income | $1,118,810 | $254,100 | Property, plant & equipment | 17,189,920 | 1,000,450 | |
Statement of retained earnings | $26,682,950 | $2,431,000 | ||||
BOY retained earnings | 5,801,070 | 937,750 | Liabilities and stockholders' equity | |||
Net income | 1,118,810 | 254,100 | Accounts payable | $1,217,920 | $173,030 | |
Dividends | (262,570) | (37,400) | Accrued liabilities | 1,447,270 | 226,270 | |
Ending retained earnings | $6,657,310 | $1,154,450 | Long-term liabilities | 10,587,500 | 605,000 | |
Common stock | 925,060 | 121,000 | ||||
APIC | 5,847,890 | 151,250 | ||||
Retained earnings | 6,657,310 | 1,154,450 | ||||
$26,682,950 | $2,431,000 |
At what amount will the following accounts appear on the consolidated financial statements?
Do not use negative signs with any of your answers.
a. | Sales | Answer
|
b. | Investment income | Answer
|
c. | Operating expenses | Answer
|
d. | Inventories | Answer
|
e. | Equity investment | Answer
|
f. | Property, plant & equipment, net | Answer
|
g. | Goodwill | Answer
|
h. | Common stock | Answer
|
i. | Retained earnings | Answer
|
plzz answer part D,E AND F
Trending now
This is a popular solution!
Step by step
Solved in 4 steps