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
notsponge [240]
3 years ago
11

Paar Corporation bought 100 percent of Kimmel, Inc., on January 1, 2012. On that date, Paar's equipment (10-year life) has a boo

k value of $420,000 but a fair value of $520,000. Kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. Paar uses the equity method to record its investment in Kimmel. On December 31, 2014, Paar has equipment with a book value of $294,000 but a fair value of $445,200. Kimmel has equipment with a book value of $190,400 but a fair value of $357,000. What is the consolidated balance for the Equipment account as of December 31, 2014?$612,600.$802,200.$574,000.$484,400.
Business
1 answer:
Leona [35]3 years ago
6 0

Answer: Option (C) is correct.

Explanation:

Given that,

On January 1, 2012

Paar's equipment (10-year life) has a book value(A) = $420,000

Fair value(B) = $520,000

and

Kimmel has equipment (10-year life) with a book value(C) = $272,000

Fair value(D) = $400,000

On December 31, 2014

Paar has equipment with a book value(E) = $294,000

Fair value(F) = $445,200

and

Kimmel has equipment (10-year life) with a book value(G) = $190,400

Fair value(H) = $357,000

Goodwill recognized by Paar corporation on Jan 1, 2012 = $400,000 - $272,000

= $128,000

Goodwill Amortized = \frac{128,000}{10} \times3

                                 = $38,400

Consolidated balance for the Equipment account as of December 31, 2014:

= E + G + Goodwill recognized by Paar corporation - Goodwill Amortized

= $294,000 + $190,400 + $128,000 - $38,400

= $574,000

You might be interested in
Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at one percent of credit sale
likoan [24]

Answer:

Dec.31           Bad Debts Expense    27000

December 31    Balance Sheet Accounts Receivable             392400

Explanation:

Harris Company

Credit Sales for the current year $2700,000

Credit Losses = 1% of $ 2700,000= $ 27000

Add Allowance for Doubtful Accounts $ 30600 Cr

Required Adjustments          $ 57,600 Cr

General Journal

Date                     Description            Debit                Credit

Dec.31           Bad Debts Expense    27000

                         Allowance for Doubtful Accounts   27000

December 31 Balance Sheet.

                       Accounts Receivable      $450,000        

Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)

                      Accounts Receivable             392400

6 0
3 years ago
Which of these cancellations of debt would be includable in income?
motikmotik

Answer:

Recourse debt.

Explanation:

Cancelled recourse debt are included as income and are taxable. Taxpayer get the benefit for using the money but does not have burden to repay the amount. These are mainly, prizes, awards on winning any contest etc. Debt which are forgiven or cancelled by lender are considered as Income and taxable. The law say that income from discharge of indebtness are included as income.

3 0
2 years ago
An employee requested that the balance of her 401(k) account be sent directly to her in one lump sum. upon receipt of the distri
yKpoI14uk [10]

The tax consequence of the distribution sent to this employee is that the Distribution is subject to federal income tax withholding.

8 0
2 years ago
Suppose the U.S. House of Representatives is debating a bill to fund construction and maintenance for the nation's highway syste
Mekhanik [1.2K]

Answer: The authorization of funds for the museum is an example of an earmark.

Explanation:

Earmarking is the act of setting aside particular fund for a specific purpose.

In the United States, earmarks are directive from the Congress that funds should be allocated and spent on certain projects.

For example, one can say the prime minister has earmarked three billion dollars for the construction of new hospitals. The expenditure on the funding of the public art museum is an earmark.

3 0
3 years ago
Anyone selling a car or knows if someone is selling one if so i am happy to buy it
Aneli [31]

Answer:

my friend is what state you live in tho?

Explanation:

6 0
3 years ago
Other questions:
  • Nora was thinking about something else the day her teacher explained the difference between the words "between" and "among," so
    5·1 answer
  • Assume there are currently five firms producing and selling computer chips in the European market. Also assume that the product
    15·2 answers
  • The following is an extension economy of scale
    12·1 answer
  • The demand for loanable funds is downward sloping because the ​______ the interest​ rate, the ​__________ the number of profitab
    10·1 answer
  • In questionnaire design, a question such as, "marketing is the best part of the business program, isn't it?" suffers from the pr
    9·1 answer
  • Use the following information to answer the next three questions.
    14·1 answer
  • The discount rate refers to which tool of monetary policy?
    10·1 answer
  • What is the average production cycle?
    15·1 answer
  • What is the world's largest free trade area?
    14·2 answers
  • A loan is amortized over five years with monthly payments at an annual nominal interest rate of 9% compounded monthly. The first
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!