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cluponka [151]
3 years ago
9

Parrett Corp. acquired one hundred percent of Jones Inc. on January 1, 2018, at a price in excess of the subsidiary's fair value

. On that date, Parrett's equipment (ten-year life) had a book value of $360,000 but a fair value of $480,000. Jones had equipment (ten-year life) with a book value of $240,000 and a fair value of $350,000. Parrett used the equity method to record its investment in Jones. On December 31, 2018, Parrett had equipment with a book value of $250,000 and a fair value of $400,000. Jones had equipment with a book value of $200,000 and a fair value of $320,000. What is the consolidated balance for the Equipment account as of December 31, 2018
Business
1 answer:
valina [46]3 years ago
4 0

Answer:

Consolidated Balance for the Equipment = $527,000

Explanation:

given data

January 1, 2018

Parrett book value = $360,000

fair value = $480,000

Jones book value = $240,000

fair value = $350,000

December 31, 2018

Parrett book value of $250,000

fair value of $400,000

Jones book value = $200,000

fair value = $320,000

solution

we Consolidate here Balance for the Equipment that is as

first we take Jones 's Equipment that is

Jones 's Equipment = $350,000 - $240,000

Jones 's Equipment = $110,000.00     ....................1

and  

Parrett Equipment Book value = $250,000.00     ..............2

Jones Equipment Book Value = $200,000.00       ................3

so that Excess Amortization will be

Excess Amortization = ( $110,000 ÷ 10 years ) × 3 year

Excess Amortization = $33,000.00    ...................4

Consolidated Balance for the Equipment will be

Consolidated Balance for the Equipment = $110,000.00 + $250,000.00   + $200,000.00 - $33,000.00  

Consolidated Balance for the Equipment = $527,000

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Answer:

Land =  $ 61,950

Building = $ 227,150

Equipment =  $ 82,600

Explanation:

Given the following fair values

Land = $ 70,800

Building =  $259,600

Equipment = $ 94,400

Total cost (based on fair value) =  70,800 +  259,600 +  94,400

                                                    = $ 424,800

Cash payment given  =  $ 371,700

Using the proportion system to allocate the cost,

Cost of land =  \frac{70800}{424800} × 371700

                     = $ 61,950

Cost of building = \frac{259600}{424800} × 371700

                          =  $ 227,150

Cost of Equipment = \frac{94400}{424800} × 371700

                               =  $ 82,600

Therefore, the amounts to be recorded in the books for land, building and equipment are $ 61,950,  $ 227,150 and  $ 82,600 respectively.

3 0
3 years ago
If a firm decides to increase the depth of its offerings to address consumer preferences, what will it do
Shtirlitz [24]

Answer: consumers find it unfair for firms to increase prices after an increase in demand".

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First it was discovered that some products have the characteristic that the amount of product that a customer wants to buy can depend on the amount of the product that other people are consuming.

And then it was discovered that most people are satisfied that companies raise prices because of an increase in costs, but consider it unfair to raise prices as a result of increased demand.

Explanation:

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In a system of 100-percent-reserve banking, a. banks do not accept deposits. b. banks can increase the money supply. c. banks do
zheka24 [161]

The correct option is C). banks do not influence the supply of money.

<h3>What is 100-percent-reserve banking?</h3>

100-percent-reserve banking, is a system of banking, in which banks only lend from time deposits instead of lending demand deposits.

In a system with 100 percent reserve banking, banks cannot make the loans and do not influence the supply of the money.

This system is also known as full-reserve banking.

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brainly.com/question/7295577

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8 0
1 year ago
Your manager, Felix Young, wants to know why your estimate of the time it will take to get an MRP system up and running is so lo
Svet_ta [14]

Answer: MRP is a term used in data warehousing to refer to a system that is used to process the day-to-day transactions of an organization. These systems are designed in a manner that processing of day-to-day transactions is performed efficiently and the integrity of the transactional data is preserved.

Explanation: Based on the findings from Young it showed that his management runs an inefficient system that has no accountability and modes of operation  in bench marking staff operations on a daily and monthly basis. 2. Records for business transactions should be automated to cushion fraudulent practice from staff or management.

3 0
3 years ago
DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P
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Answer:

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b) So value of unlevered firm is $4.512 million.

Explanation:

a.

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= $1,410,000 / 50,000

= $28.20

Share price of company is $28.20.

b.

VAlue of all equity firm = Number of share outstanding × Price per share

= 160,000 × $28.20

= $4.512 million

Value of levered firm is $4.512 million.

Since tax rate is zero, so value of levered firm equal to value of unlevered firm.

So value of unlevered firm is $4.512 million.

6 0
3 years ago
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