1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
alina1380 [7]
3 years ago
7

On January 1, Jarel acquired 80 percent of the outstanding voting stock of Suarez for $260,000 cash consideration. The remaining

20 percent of Suarez had an acquisition-date fair value of $65,000. On January 1, Suarez possessed equipment (5-year life) that was undervalued on its books by $25,000. Suarez also had developed several secret formulas that Jarel assessed at $50,000. These formulas, although not recorded on Suarez’s financial records, were estimated to have a 20-year future life. As of December 31, the financial statements appeared as follows:Jarel Suarez Revenues $ (300,000 ) $ (200,000 ) Cost of goods sold 140,000 80,000 Expenses 20,000 10,000 Net income $ (140,000 ) $ (110,000 ) Retained earnings, 1/1 $ (300,000 ) $ (150,000 ) Net income (140,000 ) (110,000 ) Dividends declared 0 0 Retained earnings, 12/31 $ (440,000 ) $ (260,000 ) Cash and receivables $ 210,000 $ 90,000 Inventory 150,000 110,000 Investment in Suarez 260,000 0 Equipment (net) 440,000 300,000 Total assets $ 1,060,000 $ 500,000 Liabilities $ (420,000 ) $ (140,000 ) Common sWhat is the consolidated total of noncontrolling interest appearing on the balance sheet?$85,500.$70,500.$83,100.$87,000.
Business
1 answer:
FinnZ [79.3K]3 years ago
4 0

Answer:

$85,500

Step-by-step Explanation:

Step 1

Non-controlling interest of book value of net assets (January 1)

= Common stock (Jan 1) + Retained earnings (Jan 1)

= ($100,000 + $150,000) x 20%

= $50,000

Step 2

Fair value of net assets (Jan 1)

= Cash paid for 80% stock + Fair value of remaining 20% stock

= $260,000 + $65,000

= $325,000

Non-controlling portion of excess of assets' fair value over book value

= (Fair value - Book value) x 20%

= ($325,000 - $250,000) x 20%

= $15,000

Step 3

Amortization expense

= Amortization of undervalued equipment + Amortization on secret formulas

= ($25,000 / 5) + ($50,000 / 20)

= $7,500

Non-controlling portion of net income after adjusting for amortization

= ($110,000 - $7,500) x 20%

= $20,500

Step 4

Consolidated total of non-controlling interest

= $50,000 + $15,000 + $20,500

= $85,500

You might be interested in
Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purcha
garri49 [273]

Answer:

Explanation:

Cash budget for Pasadena Candle Inc.

Month                Purchased          Paid    

August               $40,000             $16,000

September        $36,000             $38,400

Calculations:

Month ending payment in September = 60 % x August purchases + 40 % x September purchases  = 0.60 x $ 40,000 + 0.40 x $ 36,000

 = $ 24,000 + $ 14,400 = $ 38,400

5 0
3 years ago
The income statement for the Shamrock, Inc. for the month ended July 31 shows Service Revenue $17,510, Salaries and Wages Expens
Greeley [361]

Answer:

July 31

Dr Service revenue $17,510

Cr Income summary $17,510

July 31

Dr Income summary $14,230

Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,070 Income Tax Expense $1,400

July 31

Dr Income summary 3,280

Cr retained earnings 3,280

July 31

Dr Retained earnings 1,660

Cr Dividends 1,660

Explanation:

Preparation of the closing journal entries

July 31

Dr Service revenue $17,510

Cr Income summary $17,510

(To close revenue account)

July 31

Dr Income summary $14,230

(9,760+3,070+1,400)

Salaries and Wages Expense $9,760, Maintenance and Repairs Expense $3,070 Income Tax Expense $1,400

(To close expense accounts)

July 31

Dr Income summary 3,280

(17,510-14,230)

Cr retained earnings 3,280

(To close net income/loss to retainedearnings)

July 31

Dr Retained earnings 1,660

Cr Dividends 1,660

(To close dividends to retained earnings)

5 0
3 years ago
Which is the main force behind the decisions made by producers in a free-market society?
marysya [2.9K]
The profit motive

Hope this helped!
STSN
7 0
3 years ago
Read 2 more answers
Prepare journal entries to record the declaration and payment of these stock and cash dividends. 2. Prepare the December 31, 202
erma4kov [3.2K]

Answer:

Retained Earning (Dr.) $295,000

Stock Dividend Payable (Cr.) $295,000

To record stock dividend

Retained Earnings (Dr.) $157,800

Cash (Dr.) $157,800

To record cash dividend

Explanation:

Statement of Shareholder's Equity

Retained Earnings Beginning Jan 21 $1,275,000

Net Income $2,250,000

Cash Dividend $157,800

Stock Dividend $295,000

Retained Earning Ending $3,072,200

5 0
3 years ago
WILL GIVE BRAINLIEST PLS ANSWER
fomenos
The answer is A, that way you have all the fine print
6 0
3 years ago
Other questions:
  • An item is regularly priced at $40 . tom bought it on sale for 65% off the regular price. how much did tom pay?
    9·1 answer
  • Consider the subschema of a receiving clerk. The receiving clerk needs sufficient rights in her logical view to perform her duti
    14·1 answer
  • Consider three bonds with 6.8% coupon rates, all making annual coupon payments and all selling at a face value of $1,000. The sh
    10·1 answer
  • Which of the following statements is not true for T accounts?
    11·1 answer
  • Al is a medical doctor who conducts his practice as a sole proprietor. During 2020, he received cash of $687,600 for medical ser
    15·1 answer
  • Earned $16,200 of cash revenue. Borrowed $12,000 cash from the bank. Adjusted the accounting records to recognize accrued intere
    11·1 answer
  • HELP
    6·1 answer
  • In a duopoly, if one firm increases its price, then the other firm can Group of answer choices keep its price constant and thus
    11·1 answer
  • Briefly explain the weaknesses of the RSA's Industrial Development Zones?
    13·1 answer
  • A new pair of sneakers costs $70 now. what is the cost of the shoes 5 years from now if the price increases 8% per year?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!