ADVANCED ACCOUNTING
13th Edition
ISBN: 9781260773033
Author: Hoyle
Publisher: MCG
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Question
Chapter 7, Problem 1DYS
To determine
Prepare an Excel spreadsheet that computes the following:
1. Company M’s net income including its equity in Company L earnings.
2. H’s net income including its equity in Company M’s total earnings.
3. Total entity net income for the three companies.
4. Net income attributable to the non-controlling interests.
5. Difference between these elements:
- Company H’s net income.
- Total entity net income for the three companies less net income attributable to the non-controlling interests of the total entity.
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Students have asked these similar questions
A corporation using the equity method of accounting for its investment in a 40% owned investee,which earned $20,000 and paid $5,000 in dividends ,the debit side of recording the income from subsidiary will be
Select one:
a. no entry
b. investment
c. income
d. cash
Comparative income statements of Sub Corporation for the calendar years 2019, 2020, and
2021 are as follows (in thousands):
Sales
Cost of sales
Gross profit
Operating expenses
Net income
2019
$22,000
10,600
11400
5,700
$5700
2020
$18,500
9,900
8600
5,500
$3100
2021
$19,250
10,100
9150
6.000
$3150
ADDITIONAL INFORMATION
1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019-2021
period. Pub's separate income (excludes income from Sub) was $7,200,000, $6,600,000, and
$7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at its
underlying book value, which was equal to fair value on July 1, 2017.
2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half the
merchandise remained in Sub's inventory at December 31, 2019. Total sales by Pub to Sub in
2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.
3. Pub's inventory at December 31, 2020, included items acquired from Sub on which Sub…
For the year ended December 31, the following results were given:
Dividend Paid Net Income
Parent Company P15,000 P30,200Subsidiary Company 4,000 9,400
Using the proportionate basis or partial goodwill method, compute the profit attributable to equity holders of parent (or controlling interestin consolidated net income) on December 31:A. P 26,600 C. P 36,000B. P32,090 D. P 44,100
Chapter 7 Solutions
ADVANCED ACCOUNTING
Ch. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - How does the presence of an indirect ownership...Ch. 7 - Prob. 5QCh. 7 - In accounting for mutual ownerships, what is the...Ch. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Jones acquires Wilson, in part because the new...Ch. 7 - Prob. 13QCh. 7 - Prob. 1PCh. 7 - Prob. 2PCh. 7 - Prob. 3PCh. 7 - Which of the following is correct for two...Ch. 7 - Prob. 5PCh. 7 - Prob. 6PCh. 7 - Prob. 7PCh. 7 - Prob. 8PCh. 7 - Prob. 9PCh. 7 - Prob. 10PCh. 7 - Prob. 11PCh. 7 - Prob. 12PCh. 7 - Prob. 13PCh. 7 - Prob. 14PCh. 7 - On January 1, 2016, Uncle Company purchased 80...Ch. 7 - Prob. 16PCh. 7 - Prob. 17PCh. 7 - Prob. 18PCh. 7 - Prob. 19PCh. 7 - Clarke has a controlling interest in Rogerss...Ch. 7 - Prob. 21PCh. 7 - Prob. 22PCh. 7 - Prob. 23PCh. 7 - Prob. 24PCh. 7 - Prob. 25PCh. 7 - Prob. 26PCh. 7 - Prob. 27PCh. 7 - Prob. 28PCh. 7 - Prob. 29PCh. 7 - Prob. 1DYSCh. 7 - Prob. 2DYS
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