Please answer retained earnings Determining ending consolidated balances in the second year following the acquisition-Cost methodAssume 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 thisexcess 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 retainedearnings 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 SubsidiaryParent SubsidiaryIncome statementSalesCost of goods soldGross profitEquity incomeOperating expensesNet incomeStatement of retained earningsBOY retained earningsNet incomeDividendsEnding retained earningsa. Salesb. Investment incomec. Operating expensesd. InventoriesBalance sheet$8,318,750 $1,890,000 Assets(5,989,500) (1,089,000) Cash2,329,25037,400Retained earnings801,000 Accounts receivableInventory(1,247,840) (546,900) Equity investment$1,118,810 $254,100 Property, plant & equipment, net5,801,0701,118,810 254,100 Accounts payable(262,570) (37,400) Accrued liabilities$6,657,310 $1,154,450Long-term liabilitiesCommon stockAPICRetained earnings937,750 Liabilities and stockholders' equity1,844,9403,917,500✔At what amount will the following accounts appear on the consolidated financial statements?Do not use negative signs with any of your answers.$10,208,750 ✓$0✔$$e. Equity investment$f. Property, plant & equipment, net $g. Goodwill$h. Common stock$i.$0 ✓18,591,970464,200✔925,060$1,567,280 $468,6002,462,900 421,3003,376,850540,6502,086,0000 x17,189,920 1,000,450$26,682,950 $2,431,000$1,217,9201,447,270$173,030226,27010,587,500925,0605,847,8906,657,310 1,154,450$26,682,950 $2,431,000605,000121,000151,250

Given in the question: For the year end on December 31, 2016 Parent Subsidiary…

Answered: Please answer retained earnings

Business

Accounting

Please answer retained earnings

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 22PC

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Determining ending consolidated balances in the second year following the acquisition—Cost methodAssume a parent company acquired a subsidiary on January 1, 2015, for $2,236,000. The purchase price was $1,116,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $652,000 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:
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 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…
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