ADVANCED ACCOUNT CONNECT +PROCTORIO
14th Edition
ISBN: 9781266179082
Author: Hoyle
Publisher: MCG
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On June 30, 2018, Streeter Company reported the following account balances:On June 30, 2018, Princeton Company paid $310,800 cash for all assets and liabilities of Streeter, which will cease to exist as a separate entity. In connection with the acquisition, Princeton paid $15,100 in legal fees. Princeton also agreed to pay $55,600 to the former owners of Streeter contingent on meeting certain revenue goals during 2019. Princeton estimated the present value of its probability adjusted expected payment for the contingency at $17,900.In determining its offer, Princeton noted the following pertaining to Streeter:• It holds a building with a fair value $43,100 more than its book value.• It has developed a customer list appraised at $25,200, although it is not recorded in its financial records.• It has research and development activity in process with an appraised fair value of $36,400. However, the project has not yet reached technological feasibility and the assets used in the activity…
On January 1, 2021, Squirtle Company sold a piece of equipment to Charmander Company with a cost of
P3,500,000 and accumulated depreciation of P500,000 in exchange for an annual 6% interest-bearing note,
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1. How much is the total amount that will reflect in the statement of comprehensive income for the year
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2. What is the interest income for the year 2023?
3. How much is the total proceeds of Squirtle for the year 2024?
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
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