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vladimir1956 [14]
3 years ago
12

.Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at an amount in excess of Kenneth's fair va

lue. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000. If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balanc e for the Equipment account as of December 31, 2018
Business
1 answer:
myrzilka [38]3 years ago
7 0

Answer:

$1,104,000

Explanation:

The computation of the consolidated valance of the equipment account as on Dec 31, 2018 is shown below:

As per the data given in the question,

Particulars                                  Amount

Equipment with a book value  $975,000

Add: Kenneth Equipment =               $105,000

Add: Original purchase price for Kenneth = $120,000 - $90,000 = $30,000

Less: Amortization of allocation = ($30,000 × 2) ÷ 10 = $6,000

Consolidated balance for equipment   $1,104,000

We simply added the

= $975,000 + $105,000 + $30,000 - $6,000

= $1,104,000

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Excerpts from Dowling Company's December 31, 2018 and 2017, financial statements and key ratios are presented below (all numbers
Rus_ich [418]

Answer:

Option (A) is correct.

Explanation:

Given that,

2018:

Accounts receivable (net) = $20

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Net income = $20

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Return on equity = Return on assets × Equity multiple

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Therefore, Dowling's return on equity for 2018 is 24.3%.

5 0
3 years ago
Consider the economies of Sporon and Gribinez, both of which produce agricultural products using only land and labor. The follow
dusya [7]

Answer:

Sporon

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2021   $14

2022  $12

2023  $10

Gribinez

2020 $9

2021  $10

2022  $11

2023  $12

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Explanation:

Real Per capita GDP measures the standard of living of the people in a country. The higher the Real Per capita GDP, the higher the standard of living

Real Per capita GDP = Real GDP / population

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

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Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

Sporon

2020 : $15,000 / 1000 = $15

2021:  $28,000 / 2000 =    $14

2022 :  $36,000 /3,000 =  $12

2023: $40,000/4000 =  $10

Gribinez

2020  : $4500 / 500= $9

2021 : $10,000 / 1000 = $10

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2023: $24,000 / 2000 =  $12

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Rate of increase in Real GDP in 2022 = (16500 / 10,000) - 1 = 0.65 = 65%

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How much was a dozen of eggs in 1980
Korolek [52]

a dozen eggs in 1980 was 84 cents.

3 0
3 years ago
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Variable costs as a percentage of sales for lemon inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How mu
GREYUIT [131]

When sales increase by $40,000, operating income will change by $-12,000.

<h3>By how much would operating income change?</h3>

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6 0
1 year ago
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Studentka2010 [4]
I believe the statement is false. Good scientific analysis cannot overcome poorly collected evidence. It is <span>because the analysis could be incorrect because the evidence is not reliable. Hope this answers the question. Have a nice day.</span>
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