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
The accounts receivable turnover rate: Multiple Choice Indicates how many times the receivables were converted into cash during
andreev551 [17]

Answer:

Indicates how many times the receivables were converted into cash during the year.

Explanation:

Accounts receivables turnover ratio or Debtor Turnover Ratio(DTR) depicts the number of times a business's receivables are converted into cash within a period.

The ratio is computed as follows:

\frac{Net\ Credit\ Sales}{Average\ Accounts\ Receivables}

wherein, Average Accounts Receivables = \frac{Op.\ debtor\ balance\ +\ Cl.\ debtor\ balance}{2}

wherein, Op. = Opening

               Cl. = Closing

The ratio depicts how often a firm receives the money due from it's debtors during a period and represents how frequently debtors make payments, represented by average collection period which is computed as follows:

= \frac{365\ days}{DTR}

6 0
3 years ago
11
sukhopar [10]
B. extracurricular activities!
6 0
3 years ago
AND is a boolean operator that refines an internet search to include all items in the search field
bija089 [108]
Is this a question??
7 0
3 years ago
Read 2 more answers
Lorinda has started to think about saving for retirement. She reads a recommendation that says she should save at least 3/10 of
Bumek [7]

Answer:

          \large\boxed{\large\boxed{\$ 13,200}}

Explanation:

This is an algebra question about fractions.

You need to find 3/10 of the income, and the income is $44,000.

You must muliply the fraction 3/10 by the $44,000 income.

To multily one fraction by a whole number you convert the whole number to a fraction with denominator 1. Then multiply numerator with numerator and denominator with denominator. This is how:

                     \dfrac{3}{10}\times \dfrac{\$ 44,000}{1}=\dfrac{3\times \$ 44,000}{10}=\\\\\\=\dfrac{\$ 132,000}{10}=\$ 13,200

3 0
3 years ago
If the potential employer is a candle-making company, _____ would be one of the employer’s raw materials.
Scilla [17]

Answer:

wax

Explanation:

Raw materials are the components or ingredients used to manufacture finished goods. They are the unprocessed materials that go through the production process or refining to give a consumable product.

Wax is the main raw material in the production of candles. A company involved in making candles need a source of wax to stay in business.

5 0
3 years ago
Other questions:
  • When the state of montana runs an advertising campaign inviting the public to visit "big sky country," it's an example of ______
    13·1 answer
  • At what stage of the creative process does a director work to create a metaphor for a production?
    12·1 answer
  • The income statement of Sheridan Company for 2020 included the following items:
    13·1 answer
  • List and describe three causes for shifts in the demand curve.
    7·1 answer
  • An investment with more liquidity would be ideal for someone who
    15·2 answers
  • Your client doesn’t want to pay a monthly fee for their QuickBooks Payments merchant account. What other option is available to
    12·2 answers
  • At the end of May, the following adjustment data were assembled:A. Insurance expired during May is $275B. Supplies on hand on Ma
    5·1 answer
  • McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $75; Z sells for $95. Varia
    11·1 answer
  • The ability to continue after a disaster of some kind is a requirement of Security Rule. What item is considered part of the con
    8·1 answer
  • Your firm has net income of $357 on total sales of $1,380. Costs are $760 and depreciation is $110. The tax rate is 30 percent.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!