ADV. ACCT CONNECT STAND ALONE
13th Edition
ISBN: 9781266295744
Author: Hoyle
Publisher: MCG
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Chapter 5, Problem 25P
To determine
Determine consolidated totals for each of these account balances.
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Allison Corporation acquired 90 percent of Bretton on January 1, 2022. Of Bretton's total acquisition-date fair value, $65,100 was
allocated to undervalued equipment (with a 10-year remaining life) and $86,800 was attributed to franchises (to be written off over a
20-year period).
Since the takeover, Bretton has transferred inventory to its parent as follows:
Remaining at Year-
Year
Cost
Transfer Price End (at transfer
2022
2023
$50,100
53,100
75,375
price)
$33,400
2024
$100,200
88,500
100,500
39,165
51,700
On January 1, 2023, Allison sold Bretton a building for $67,000 that had originally cost $93,800 but had only a $40,200 book value at
the date of transfer. The building is estimated to have a five-year remaining life (straight-line depreciation is used with no salvage
value).
Selected figures from the December 31, 2024, trial balance of these two companies are as follows:
Sales
Allison
$729,750
Bretton
$417,000
Cost of Goods Sold
458,700
229,350
Operating Expenses
125,100
83,400…
ProForm acquired 70 percent of ClipRite on June 30, 2017, for $910,000 in cash. Based on Clip- Rite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition.The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2018 financial statements are as follows:ProForm sold ClipRite inventory costing $72,000 during the last six months of 2017 for $120,000. At year-end, 30 percent remained. ProForm sells ClipRite inventory costing $200,000 during 2018 for $250,000. At year-end, 10 percent is left. With these facts, determine the consolidated balances for the following:SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/18
On January 1, 2015, Bactin Corporation acquired 10% of
Oakton Company for $100,000. On that date, the total
book value and fair value of Oakton's net assets was
$900,000. Any difference between cost and fair value is
attributable to goodwill. In 2015, Oakton reported net
income of $60,000 and paid dividends of $30,000. On
January 1, 2016, Bactin Corporation bought another 10%
of Oakton for $100,000, and on that date, the book value
and fair value of Oakton's net assets still was $900,000
(the fair value of Oakton did not change during 2015).
Bactin concluded that its 20% ownership now allowed it
to significantly influence Oakton's operations. In 2016,
Oakton reported net income of $80,000 and paid
dividends of $40,000.
Required:
Prepare all journal entries for Bactin for 2015 and 2016,
assuming no change in fair value of the Oakton stock
during that time period.
Chapter 5 Solutions
ADV. ACCT CONNECT STAND ALONE
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Use the same information as in problem (5) except...Ch. 5 - Angela, Inc., holds a 90 percent interest in Corby...Ch. 5 - Prob. 8PCh. 5 - Thomson Corporation owns 70 percent of the...Ch. 5 - Prob. 10PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 12PCh. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - What is the consolidated total for inventory at...Ch. 5 - Prob. 16PCh. 5 - Prob. 17PCh. 5 - Prob. 18PCh. 5 - Prob. 19PCh. 5 - Prob. 20PCh. 5 - Akron, Inc., owns all outstanding stock of Toledo...Ch. 5 - Prob. 22PCh. 5 - Prob. 23PCh. 5 - Prob. 24PCh. 5 - Prob. 25PCh. 5 - Prob. 26PCh. 5 - Prob. 27PCh. 5 - Prob. 28PCh. 5 - Prob. 29PCh. 5 - Following are financial statements for Moore...Ch. 5 - Prob. 31PCh. 5 - Prob. 32PCh. 5 - Prob. 33PCh. 5 - Prob. 34PCh. 5 - Prob. 35PCh. 5 - Prob. 36PCh. 5 - Prob. 1DYSCh. 5 - Hamilton Hawks Players Association and Mr....
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