ADVANCED ACCOUNTING-LL
13th Edition
ISBN: 9781260232486
Author: Hoyle
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Chapter 6, Problem 36P
Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2018:
| Alford | Knight | |
| Revenues | $(500,000) | $(230,000) |
| Cost of goods sold | 300,000 | 140,000 |
| 40,000 | 10,000 | |
| Other expenses | 20,000 | 20,000 |
| Gain on sale of equipment | (30,000) | –0– |
| Equity in earnings of Knight | (36,200) | –0– |
| Net income | $(206,200) | $ (60,000) |
Additional Information for 2018
- Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.
- Intra-entity gross profits in inventory at January 1 were $6,000, but at December 31 they are $9,000.
- Annual excess amortization expense resulting from the acquisition is $11,000.
- Knight paid dividends totaling $20,000.
- •The noncontrolling interest’s share of the subsidiary’s income is $9,800.
- During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.
Using either the direct or indirect method, compute net
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Presented below is financial information of the Mayer Corporation for 2020. Gain on the sale of investments Net sales Cost of goods sold Loss on disposal of wholesale division Interest revenue Loss on operations of wholesale division Selling and administrative expenses Dividends declared on common stock Write off of goodwill Dividends declared on preferred stock Effective tax rate on all items is 30% $170,000 $54,000,000 $38,000,000 $690,000 $115,000 $610,000 $9,700,000 $430,000 $800,000 $150,000 Mayer Corporation decided to discontinue its wholesale operations and to retain their manufacturing operations. On July 1, Mayer sold the wholesale operations. During 2020, there were 850,000 shares of common stock outstanding all year. Instructions: Compute each of the following. You must show your work. You may type your answers in the text submission box below or you can use the "Add File" button to upload a Word file or an Excel file. If this option does not work please email me to let me…
ollowing are financial statements for Moore Company and Kirby Company for 2021:
Moore
Kirby
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$ (800,000)
$ (600,000)
Cost of goods sold
500,000
400,000
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100,000
160,000
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$ (990,000)
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Net income
(200,000)
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Dividends declared
130,000
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$ (590,000)
Cash and receivables
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Inventory
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Investment in Kirby
657,000
–0–
Equipment (net)
600,000
420,000
Buildings
1,000,000
650,000
Accumulated depreciation—buildings
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Chapter 6 Solutions
ADVANCED ACCOUNTING-LL
Ch. 6 - Prob. 1QCh. 6 - Prob. 2QCh. 6 - When is a firm required to consolidate the...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - How do noncontrolling interest balances affect the...Ch. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Problems 7 and 8 are based on the following...Ch. 6 - Prob. 8PCh. 6 - Bens man Corporation is computing EPS. One of its...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - On January 1, Coldwater Company has a net book...Ch. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - On January 1, 2018, Stamford issues 10,000...Ch. 6 - On January 1, 2018, Stamford reacquires 8,000 of...Ch. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - On December 31, 2017. PanTech Company invests...Ch. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Alford Company and its 80 percentowned subsidiary,...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Fred, Inc., and Herman Corporation formed a...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 1DYSCh. 6 - Prob. 2DYSCh. 6 - The FASB ASC Subtopic Variable Interest Entities...
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