Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $286,400 in cash. Jasmine had a book value of only $220,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $60,000 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $15,700. Subsequent to the acquisition, Jasmine reported the following: 2019 2020 2021 Net Income $74,400 62,500 47,800 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow: Revenues-operating Dividends Declared $10,000 40,000 20,000 Expenses Equipment (not) Tyler Jasmine Company Company $(312,000) $(182,000) 233,000 134,200

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ChapterA2: Investments
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Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $286,400 in cash. Jasmine had a book
value of only $220,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $60,000 on
Jasmine's financial records. A building with a 20-year remaining life was overvalued by $15,700. Subsequent to the acquisition,
Jasmine reported the following:
2019
2020
2021
In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two
companies as of December 31, 2021, follow:
Revenues-operating
Net Income
$ 74,400
62,500
47,800
Expenses
Equipment (net)
Buildings (net)
Common stock
Retained earnings, 12/31/21
a.
b.
C.
d.
Dividends
Declared
$10,000
40,000
20,000
e.
f.
Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.)
Investment in Jasmine Company
Equity in Subsidiary Earnings
Consolidated Net Income
Consolidated Equipment (net)
Consolidated Buildings (net)
Consolidated Goodwill (net)
Consolidated Common Stock
Tyler
Company
$(312,000)
233,000
406,000
9.
h. Consolidated Retained Earnings, 12/31/21
404,000
(290,000)
(582,000)
Jasmine
Company
$(182,000)
134,200
98,500
71,400
(53,400)
(245,000)
Amounts
Transcribed Image Text:Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $286,400 in cash. Jasmine had a book value of only $220,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $60,000 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $15,700. Subsequent to the acquisition, Jasmine reported the following: 2019 2020 2021 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow: Revenues-operating Net Income $ 74,400 62,500 47,800 Expenses Equipment (net) Buildings (net) Common stock Retained earnings, 12/31/21 a. b. C. d. Dividends Declared $10,000 40,000 20,000 e. f. Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.) Investment in Jasmine Company Equity in Subsidiary Earnings Consolidated Net Income Consolidated Equipment (net) Consolidated Buildings (net) Consolidated Goodwill (net) Consolidated Common Stock Tyler Company $(312,000) 233,000 406,000 9. h. Consolidated Retained Earnings, 12/31/21 404,000 (290,000) (582,000) Jasmine Company $(182,000) 134,200 98,500 71,400 (53,400) (245,000) Amounts
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