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
frozen [14]
3 years ago
8

A parent acquires its subsidiary on January 1, 2019, at a cost that exceeds the subsidiary's book value by $10,000. The subsidia

ry's assets and liabilities are reported at amounts approximating book value, and there are no previously unreported assets or liabilities. Goodwill from the acquisition is impaired by $300 in 2019 and $100 in 2020. The subsidiary reports net income of $4,500 in 2019 and $3,200 in 2020. The subsidiary has no other comprehensive income and declares no dividends during 2019 or 2020.
On the consolidation working paper at December 31, 2020, eliminating entry (A) includes a debit to the investment in subsidiary account in the amount of:
A. $7,700
B. $4,500
C. $4,200
D. $7,300
Business
2 answers:
klasskru [66]3 years ago
8 0

Answer:

Correct answer is D $7300

Explanation:

Net income in 2019

$4,500

Net income in 2020

$3,200

Minus: Goodwill from the acquisition impaired in 2019

-$300

Minus: Goodwill from the acquisition impaired in 2020

-$100

Investment in subsidiary account

$7,300

Net income of the subsidiary company will be increasing the parent's asset value on the balance sheet, and any subsidiary's loss or goodwill impairment decreases it.

Tpy6a [65]3 years ago
8 0

Answer:

$7300 ( D )

Explanation:

Given the following data

subsidiary net income are

= $4500 for 2019

= $3200 for 2020

Goodwill form acquisitions are

= $300 for 2019

= $100 for 2020

on the consolidation working paper at the end of 2020 when entry A is eliminated

The subsidiary account will be recorded with the amount of

= subsidiary net incomes - goodwill from acquisitions

= ( $4500 - $300 ) + ( $3200 - $100 )

= $4200 + $3100

= $7300

You might be interested in
Joe sold gold coins for $1000 that he bought a year ago for $1000. He says, "At least I didn't lose any money on my financial in
Misha Larkins [42]

Answer: Opportunity cost

Explanation:

From the question, we are informed that Joe sold gold coins for $1000 that he bought a year ago for $1000 and he said that at least he didn't lose any money on my financial investment.

We are further told that his economist friend points out that in effect he did lose money, because he could have received a 3 percent return on the $1000 if he had bought a bank certificate of deposit instead of the coins.

This is a concept of opportunity cost. Opportunity cost is what one forgoes when one makes a different choice. The opportunity cost in this case is the bank certificate of deposit.

4 0
3 years ago
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically.
vichka [17]

Answer:

The right choice is Option c (110.0%).

Explanation:

⇒ Effective \ rate \ of \ protection = tariff \ rate \ on \ imported \ finished \ good + price \ of \ Component\times  \frac{(tariff \ on \ imported \ good- tariff \ on \ imported \ component)}{(Price \ of \ finished \ good - Price \ of \ components)}

On estimating the values, we get

⇒                                   = 30 \ percent + (80 \ percent\times 500)\times \frac{(30 \ percent - 10 \ percent)}{500-80 \ percent\times 500}

⇒                                   = 110 \ percent

Note: percent = %

3 0
3 years ago
When you take your first job, you decide to start saving right away for your retirement. You put $5,000 per year into a saving p
mafiozo [28]

Answer:

FV= $857,840.94

Explanation:

Giving the following information:

First investment:

Annual deposit= $5,000 per year

Interest rate= 10%

Number of years= 5

Second investment:

Number of years= 35

Interest rate= 10%

Lumpsum= first investment

First, we need to calculate the future value of the first investment. We will use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

FV= {5,000*[(1.1^5) - 1]} / 0.10

FV= $30,525.5

Now, the future value of the second investment.

FV= PV*(1+i)^n

FV= 30,525.5*(1.1^35)

FV= $857,840.94

7 0
3 years ago
Fill in the correct words for the skills that Sharia used to make a career plan.
gogolik [260]
#1 goal-setting #2 decision-making
8 0
2 years ago
Read 2 more answers
The FDA supervises standards of quality and consistency of drugs today. <br><br> True <br> False
Soloha48 [4]
True. Hope this helps!
7 0
3 years ago
Other questions:
  • EDP is trying to decide between two different conveyor belt systems. System A costs $438,000, has a six-year life, and requires
    10·1 answer
  • What is debit note received
    5·1 answer
  • Based on what you have learned in the lesson and the assignment, write two or three sentences describing how short-term and long
    9·2 answers
  • Name three factors that can contribute to increased productivity in a country?
    14·1 answer
  • The _____ summarizes a firms financial position at a specific point in time (i.e., a specific quarter or year).
    8·1 answer
  • Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accou
    6·2 answers
  • Loan x has a principal of $10,000x and a yearly simple interest rate of 4%. Loan y has a principal of $10,000y and a yearly simp
    10·1 answer
  • Identify which cost of inflation—menu costs or shoe-leather costs—is illustrated in each of the scenarios.
    6·1 answer
  • Paul owns a photography studio, and he has applied for a loan to
    15·1 answer
  • If country x is expected to grow by 19 percent between the years 2017 and 2018, what is the expected gdp per capita for the year
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!