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
LenaWriter [7]
3 years ago
10

Harper acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2014, for $243,700 in cash. The book

value of Kinman’s net assets on that date was $460,000, although one of the company’s buildings, with a $74,200 carrying amount, was actually worth $118,450. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $105,000.
Kinman sold inventory with an original cost of $126,000 to Harper during 2014 at a price of $180,000. Harper still held $20,400 (transfer price) of this amount in inventory
Harper acquires 40 percent of the outstanding voting stock of Kinman Company on January 1, 2014, for $243,700 in cash. The book value of Kinman’s net assets on that date was $460,000, although one of the company’s buildings, with a $74,200 carrying amount, was actually worth $118,450. This building had a 10-year remaining life. Kinman owned a royalty agreement with a 20-year remaining life that was undervalued by $105,000.
Kinman sold inventory with an original cost of $126,000 to Harper during 2014 at a price of $180,000. Harper still held $20,400 (transfer price) of this amount in inventory as of December 31, 2014. These goods are to be sold to outside parties during 2015.
Kinman reported a $50,600 net loss and a $28,300 other comprehensive loss for 2014, The company still manages to declare a $18,000 cash dividend during the year.
During 2015, Kinman reported a $57,800 net income and declared cash dividend of $20,000. It made additional inventory sales of $134,000 to Harper during the period. The original cost of the merchandise was $83,750. All but 30 percent of this inventory had been resold to outside parties by the end of the 2015 fiscal year.
Business
1 answer:
KonstantinChe [14]3 years ago
5 0
One of the steps in solving this problem is this one:

As we know as shown above, the joournal entry for 2014 and 2015 will include the investment balance, increases and decreases to equity and intra-entity profits realized and deferred. Also the balance of the acquisition needs to be calculated.

Calculation of the book value of the purchase made as the book value of Company K times percent purchased:

400,000 * 0.40 = 160,000

Then, calculate the difference in the acquisition and the book value of the purchase:

210,000 - 160,000 = 50,000
You might be interested in
An ipo is issued in the primary market which is smaller than the secondary market for equities. true /false
WITCHER [35]

The statement is True. An IPO is issued in the primary market which is smaller than the secondary market for equities.

In finance, fairness is the possession of belongings that could have debts or other liabilities connected to them. Equity is measured for accounting functions by subtracting liabilities from the price of the belongings.

Fairness is the amount of capital invested or owned with the aid of the owner of an agency. The fairness is evaluated through the difference between liabilities and assets recorded on the balance sheet of an organization. The worthiness of fairness is primarily based on the prevailing proportion fee or a cost regulated by the valuation experts or investors.

In end, stocks are known as equities because they represent possession in organizations. They let buyers gain from growth however additionally have danger when enterprise situations weaken.

Learn more about  equities here brainly.com/question/25847981

#SPJ4

4 0
2 years ago
A channel of distribution: A. is any series of firms or individuals who participate in the flow of goods and services from produ
Illusion [34]

Answer:

A. is any series of firms or individuals who participate in the flow of goods and services from producer to consumer or final user.

Explanation:

6 0
3 years ago
The buyer of a futures contract A. assumes the short position. B. may not sell the contract without the permission of the origin
Anit [1.1K]

Answer:

D

Explanation:

Firstly, before we answer this question, we need to know what a futures contract is.

A futures contract can be defined as an agreement specifying the delivery of a commodity or a security at an agreed future date and at a currently agreed price.

This means to set a future contract rolling, we need to have an agreed date if delivery and currently agreed price by both parties involved.

Now, to the question, the correct answer is D. He has the obligation to deliver the underlying financial instrument at the specified future date

6 0
3 years ago
Just before the year ended, a company offered to buy 4,120 units for $14.95 each. X Company had the capacity to produce the addi
Burka [1]

Answer:

4%

Explanation:

Profit on special order = 7847.7     or   7848 Selling price 11 Variable cost   special material 0.72 Cost of goods sold 6.69 Selling and administrative cost 1.02 Total variable cost per unit Particulars Per Unit 64500 Units Sales 19 1225500 Less: Variable cost     Cost of Goods Sold (521805-130935) 6.06 390870 Sales commission (Sales*4%) 0

4 0
3 years ago
What does the process of specialization do for an economy?
Rainbow [258]
It makes production more efficient
7 0
3 years ago
Other questions:
  • Golda Rush quit her job as a buyer for Home Depot to start her own hair dressing salon, Goldilocks. She gave up a salary of $40,
    11·1 answer
  • A stock that sold for $22 at the beginning of the year was sell- ing for $24 at the end of the year. If the stock paid a dividen
    14·1 answer
  • Tom is taking a science test and he needs to get 80% of the 20 questions on the test right in order to pass. how many questions
    10·2 answers
  • Asteroid Industries accumulated the following cost information for the year:
    8·1 answer
  • What is the answer because I don’t know
    13·1 answer
  • Freemore Corp. projected sales for the last 6 months of next year: July $206,000 October $181,000 August 168,000 November 203,00
    6·1 answer
  • Strategically thinking, why might management opt for other than the most economical choice
    6·1 answer
  • A stock paid $2.64 in dividends at the end of last year and is expected to pay a cash dividend
    6·2 answers
  • Grant Corporation is looking to purchase a building costing $1,300,000 by paying $500,000 cash on the purchase date, and agreein
    14·1 answer
  • A union might increase the demand for the labor services of its members by Multiple Choice decreasing the demand for the product
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!