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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:

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According to lewin's change model, the _____ stage involves providing employees with new information, new behavioral models, or
Sati [7]

<span>The answer to this question is unfreezing stage. Unfreezing stage is the stage of preparing the people to move and leaving the comfort zones. In this stage, in order for the unfreezing stage to become successful, the managers or leaders should command employees to embrace change end educate the people that change is needed to reach the company’s goal.</span>

3 0
3 years ago
The failure to record which transaction has no effect on the quality of inventory?
zimovet [89]

Do not record transactions that do not affect inventory quality. A recorded inventory transaction has actually taken place.

Records of inventory purchases made during the accounting period. The purchase account is increased by direct debit. The manufacturing costs of the goods sold are overestimated by the same amount. An overstatement of cost of goods sold will result in an understatement of net income and retained earnings by the original margin of error.

If the auditor is dissatisfied with the accuracy of the closing balance sheet and may be materially increase.

Inventory write-downs affect both the income statement and the balance sheet. Write-offs are treated as expenses. This means your net income and tax liability will be reduced. Therefore, a decrease in net income will reduce a company's retained earnings and reduce shareholders' equity on the balance sheet.

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4 0
1 year ago
Without a strong legal systems in a market economy:
STALIN [3.7K]

Answer:

<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>

Explanation:

  • As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.  
  • Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.
  • Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.
5 0
3 years ago
Caspian Sea Drinks needs to raise $41.00 million by issuing bonds. It plans to issue a 14.00 year semi-annual pay bond that has
Darya [45]

Answer:

Explanation:

Coupon rate = 5.07%

Yield to maturity = 4.84%

Rate = Yield/2 = 2.42%

N = 14 = 14*2 semiannually = 28 semiannually

Face value = $1000

PMT = (face value*coupon rate)/2 = $25.35

Need to find price which is PV

Using the financial calculator, PV = $1023

Number of bonds to be issued = 41,000,000/1023 = 40,078

5 0
3 years ago
The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 400 units
viva [34]

Answer:

WA      1,682

LIFO      910

FIFO  2,260

Explanation:

\left[\begin{array}{cccc}Date&Cost&Units&Subtotal\\$Jan 20th&8&400&3200\\$April 21th&10&200&2000\\$July 25th&13&280&3640\\$Sept 19th&15&90&1350\\$Total&10.51&970&10190\\\end{array}\right]

We add the units purchase and the subtotal to get the total units available for sale.

Ending inventory physical units: 970 - 810 = 160 units

<u>Then, we calculate for each method:</u>

Weighted average:

cost of goods / available units = 10,190 / 970 =  10.51

160 units x 10.51 = 1,681.6‬

LIFO:

Ending inventory will be the oldest units:

160 units x 8 = 960

FIFO:

Ending inventory will be the newest units as the units are sold as soon as they come in

90 x 15 =  1,350

70 x 13 =     910

Total       2,260

5 0
3 years ago
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