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
maria [59]
2 years ago
11

On January 1, 2017, Panther, Inc., issued securities with a total fair value of $564,000 for 100 percent of Stark Corporation's

outstanding ownership shares. Stark has long supplied inventory to Panther. The companies expect to achieve synergies with production scheduling and product development with this combination.
Although Stark's book value at the acquisition date was $304,000, the fair value of its trademarks was assessed to be $48,000 more than their carrying amounts. Additionally, Stark's patented technology was undervalued in its accounting records by $212,000. The trademarks were considered to have indefinite lives, and the estimated remaining life of the patented technology was eight years.

In 2017, Stark sold Panther inventory costing $67,500 for $135,000. As of December 31, 2017, Panther had resold 61 percent of this inventory. In 2018, Panther bought from Stark $143,000 of inventory that had an original cost of $71,500. At the end of 2018, Panther held $38,800 (transfer price) of inventory acquired from Stark, all from its 2018 purchases.

During 2018, Panther sold Stark a parcel of land for $89,900 and recorded a gain of $16,300 on the sale. Stark still owes Panther $63,200 (current liability) related to the land sale.

At the end of 2018, Panther and Stark prepared the following statements in preparation for consolidation.

Panther, Inc. Stark Corporation
Revenues $ (723,800 ) $ (364,000 )
Cost of goods sold 311,000 191,100
Other operating expenses 170,300 81,900
Gain on sale of land (16,300 ) 0
Equity in Stark's earnings (55,125 ) 0
Net income $ (313,925 ) $ (91,000 )
Retained earnings 1/1/18 $ (368,000 ) $ (295,300 )
Net income (313,925 ) (91,000 )
Dividends declared 85,700 27,000
Retained earnings 12/31/18 $ (596,225 ) $ (359,300 )
Cash and receivables $ 107,000 $ 159,000
Inventory 326,200 113,500
Investment in Stark 689,300 0
Trademarks 0 59,800
Land, buildings, and equip. (net) 669,300 288,700
Patented technology 0 128,900
Total assets $ 1,791,800 $ 749,900
Liabilities $ (492,475 ) $ (231,900 )
Common stock (400,000 ) (110,000 )
Additional paid-in capital (303,100 ) (48,700 )
Retained earnings 12/31/18 (596,225 ) (359,300 )
Total liabilities and equity $ (1,791,800 ) $ (749,900 )
Show how Panther computed its $55,125 equity in Stark's earnings balance.

Prepare a 2018 consolidated worksheet for Panther and Stark.

Business
1 answer:
Alexus [3.1K]2 years ago
8 0

Answer:

Answer for this question is explained din the attachment.

Explanation:

You might be interested in
Suppose we have a bond issue currently outstanding that has 20 years left to maturity. The coupon rate is 8% And coupons are pai
cluponka [151]

Answer:

c. 10%

Explanation:

The Yield to Maturity(YTM) of the Bond is the cost of the debt. So, we need to find the YTM first.

Here i will use a Financial Calculator to enter and compute the YTM as follows :

N = 20× 2 = 40

PMT = ($1,000 × 8%) ÷ 2 = $40

PV = $828

P/YR = 2

FV = 1,000

I or YTM = ?

Thus the cost of the Bond is 10%

3 0
3 years ago
Brandi, a sales trainee, watched as her sales supervisor chatted with a prospect's secretary in a very friendly manner. Brandi f
dusya [7]

Answer:

The correct option is (C)

Explanation:

One of the best traits of a good sales person is his ability to connect with people and seek important information related to their needs and attitude towards different products. They strike conversation informally with people to gain their confidence and build rapport.

Here, Brandi is confused as she feels it was not appropriate of her supervisor to talk to a prospect's secretary. However, she did not know that her supervisor chatted with the secretary in a friendly manner as secretaries spend most of their time with the boss and is well aware of his requirements. So, supervisor will be able to seek important information from her about the prospect that would help him convert it to sales.

7 0
3 years ago
The chart describes four people’s credit histories. Creditworthy Criteria Name Description of Credit History Ellie Has more debt
GrogVix [38]
Eesha is the one who is creditworthy.
7 0
2 years ago
Read 2 more answers
What was ireland's greatest export during the 1840s?
Viefleur [7K]
People was the greatest export
8 0
2 years ago
Read 2 more answers
Evanson Company expects to produce 540,000 units of their product during the year. Monthly production is expected to range from
Roman55 [17]

Answer:

Evanson Company

Evanson Company

Flexible Monthly Budget

Activity Level:

Finished goods (Units)          40,000         60,000          80,000

Variable costs:

Direct materials                $560,000     $840,000    $1,120,000

Direct labor                         600,000       900,000     1,200,000

Manufacturing overhead   640,000       960,000     1,280,000

Total variable costs       $1,800,000  $2,700,000  $3,600,000

Fixed manufacturing

 overhead                          135,000         135,000        135,000

Total production costs $1,935,000  $2,835,000  $3,735,000

Explanation:

a) Data and Calculations:

Expected production units per year = 540,000

Average monthly production units = 45,000 (540,000/12)

Manufacturing costs per unit:

Direct materials                            $ 14

Direct labor                                      15

Variable manufacturing overhead 16

Fixed manufacturing overhead       3

Total yearly fixed overhead = $1,620,000 (540,000 * $3)

Monthly fixed overhead = $135,000 ($1,620,000/12)

b) A flexible budget has varying activity levels from one period to the next.  One interesting feature of the flexible budget is that the variable costs are fixed per unit, but their totals vary with the volume levels.  On the other hand, the fixed costs remain static in totals but vary per unit.

7 0
2 years ago
Other questions:
  • The ABC Company had its highest level of production in May when they produced 4,000 units at a total cost of $110,000 and its lo
    5·1 answer
  • Make a case that development economics might be merely a combination of all the other subfields of economics, only applied to lo
    13·1 answer
  • The phase of a weight-training program in which most of the strength gains are realized is the ________ phase science-forums
    8·1 answer
  • A wheat farmer in Nebraska takes a risk and starts a new farm on land that was previously thought unfit for growing wheat. If hi
    13·1 answer
  • Suppose when you are 21 years old, you deposit $1,000 into a bank account that pays annual compound interest, and you do not wit
    7·2 answers
  • Marcy and Liz developed a new jewelry design. They were fortunate to get the attention of a large online retailer who was willin
    12·1 answer
  • Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative
    12·1 answer
  • In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company, an auditor
    13·1 answer
  • Define your seven weakness and seven strengths with reason
    9·1 answer
  • What are the main attractions and limitations of the comparator approach in valuation?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!