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Vika [28.1K]
3 years ago
11

Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.

On that date, Reagan's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000. Ford had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000. Reagan used the equity method to record its investment in Ford. On December 31, 2018, Reagan had equipment with a book value of $250,000 and a fair value of $400,000. Ford had equipment with a book value of $170,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2018? A. $387,000. B. $497,000. C. $508.000. D. $537,000.
Business
1 answer:
Artyom0805 [142]3 years ago
3 0

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

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Estimated balance of Doubtful Account after adjusting entry = $4,200

Explanation:

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The credit balance of Doubtful Account = $500

Computation of estimated balance of Doubtful Account after adjusting entry:

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Estimated balance of Doubtful Account after adjusting entry = $4,200

After adjusting entry , Total amount credited in Allowance for Doubtful Accounts is $4,200

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2 years ago
How are eggs processed to prepare them for shipping and purchasing by a consumer.
horsena [70]

According to the manufacturing process, the eggs are processed to prepare them for shipping and purchasing by a consumer through the use of an <u>automated machine, called a “breaker</u>."

<h3>What is the Automated Machine known as Breaker?</h3>

The automated machine known as the <u>breaker</u> in the processing and preparation of eggs is known to break the eggshell, and most often segregates the yolks from the whites.

Typically, these eggs are then pasteurized and processed into liquid, frozen or powdered form to be utilized in restaurants and bakeries or to make other products such as mayonnaise or shampoo.

<h3>The processing of eggs usually involved the following process or steps:</h3>
  • breaking,
  • filtering,
  • mixing,
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  • pasteurizing,
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Hence, in this case, it is concluded that the correct answer is the use of the <u>automated machine, called a “breaker."</u>

Learn more about Egg Processing here: brainly.com/question/14243761

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8 0
10 months ago
How does a bond issuer decide on the appropriate coupon rate to set on its bonds?
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Answer

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2 years ago
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