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
ValentinkaMS [17]
3 years ago
15

On January 1, 2018, Race Corp. acquired 80% of the voting common stock of Gallow Inc. During the year, Race sold to Gallow for $

450,000 goods that cost $330,000. At year-end, Gallow owned 15% of the goods transferred. Gallow reported net income of $204,000, and Race's net income was $806,000. Race decided to use the equity method to account for this in
Business
1 answer:
andreyandreev [35.5K]3 years ago
3 0

Answer:

Consolidated income: 954,800 dollars

Explanation:

Gallow income x race participation:

    $   204,000    x   80%   = $ 163,200

The gross profit in the infra-entity transaction will be eliminated

$ 450,000 - $ 330,000 = $ 120,000 gross profit

15% remains at Gallow so: $ 120,000 x 15% = $ 18,000 gross profit for the unsold inventory.

We now multiply by Race participation: $ 18,000 x 80% = $ 14,400 unrealized gain.

Consolidated income:

Race income:   806,000

Gallo income    163, 200

unrealized gain (14, 400)

Total:                954,800

You might be interested in
An error in the ending inventory balance in Year 1 will also affect: (You may select more than one answer.)
Virty [35]

Answer:

A) Year 1 cost of goods sold

B) Year 2 cost of goods sold

D) Year 2  beginning inventory

Explanation:

A) Year 1 expense of merchandise sold : The Current year cost of Goods Sold is processed by deducting finishing stock from Opening Inventory and Purchases made during the year. So in the event that the completion stock isn't right, at that point the result of above calculation will not be right so the Year 1 expense of merchandise sold for example (Current year cost of Goods Sold) will be inaccurate.  

D) Year 2 starting stock: year 2 starting stock is equivalent to year 1 completion stock. So on the off chance that off-base stock estimation is made at end of earlier year, at that point current year opening worth will be carried on as off-base.  

B) Year 2 expense of merchandise sold: The explanation is same as ans q(i.e. Year 1 expense of merchandise sold) as off-base convey forward opening stock worth will bring about wrong calculation of cost of products sold for year 2.

6 0
3 years ago
Manual Company sells goods to Nolan Company during 2017. It offers Nolan the following rebates based on total sales to Nolan. If
diamong [38]

Answer: See explanation

Explanation:

Based on the information given in the question, we should note that while using the gross method, the revenue gotten from sales will be calculated by subtracting the rebate of 2% from the full invoice amount of $110,000. This will be:

= $110,000 - (2% × $110,000)

= $110,000 - (0.02 × $110,000)

= $110,000 - $2200

= $107800

Using the net method, the revenue gotten from sales will be calculated by subtracting the rebate of 6% from the full invoice amount of $110,000. This will be:

= $110,000 - (6% × $110,000)

= $110,000 - (0.06 × $110,000)

= $110,000 - $6600

= $103400

5 0
2 years ago
Suzette has received an order for 1,500 boxes of nuts per week for the next 3 months. If she expects the trend in the marginal p
S_A_V [24]

Answer:

18,000 boxes

Explanation:

1500×3×4 or

1500×12

8 0
3 years ago
A global marketing strategy refers to: ​
FrozenT [24]

<span>A global marketing strategy refers to a marketing strategy used by a firm or a company to be able to compete worldwide. This is used to promote or market its products or services worldwide. This strategy is taken in response to the different international trading aspects and global market conditions.  </span>

5 0
3 years ago
Timberlake Company planned for a production and sales volume of 12,000 units. However, the company actually made and sold 13,000
Aleks04 [339]

Answer:

$65,000 Favorable  

Explanation:

  • Volume variance compute the difference due to volume of sales budgeted and actual sales qty.

  • Budgeted Selling pricec =780000 /12000 = 65

  • Sales volume variance = Budgeted Selling price (Actual sales qty-Budgeted Sales qty)  

65.00 (13000-12000) = 65000 Fav

 

Answer is $ 65000 Favorable      

5 0
3 years ago
Other questions:
  • The owner of Christie’ Bookstore is looking into the sales of its Health &amp; Fitness magazine section. She finds that her equi
    7·1 answer
  • When a tax is placed on the sellers of a product, buyers pay _ and sellers receive _ than they did before the tax?
    14·1 answer
  • Sharon fell while making an inspection of a machine at work and in the fall, she broke her arm. can she collect workers' compens
    10·1 answer
  • Planning is a key management function because other management functions depend on having a good plan.
    10·1 answer
  • Identify the sentences with dangling modifiers. Be sure to check all that apply. Check all that apply. As the CEO, his e-mail me
    9·1 answer
  • The short run is:________
    12·1 answer
  • LO 5.3The initial processing department had a beginning inventory of 750 units and an ending inventory of 1,350 units, and it st
    14·1 answer
  • Internal information: A. attempts to describe something that is unknown. B. describes the environment surrounding the organizati
    10·1 answer
  • Georgia Products Inc. completed and transferred 163,000 particle board units of production from the Pressing Department. There w
    15·1 answer
  • Petter Jansen purchased 100 shares each in Sygnette and Joey Stores a year ago. He paid $62.85 and $121.15 per share respectivel
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!