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PilotLPTM [1.2K]
3 years ago
15

Assume that a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1, 2012. On the acqu

isition date, the identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of $100,000 and no recorded book value. On the date of acquisition, the patent had 5 years of remaining useful life and the parent company amortizes its intangible assets using straight line amortization. During the year ended December 31, 2013, the subsidiary recorded sales to the parent in the amount of $105,000. On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25%. Approximately 30% of this merchandise remains in the parent's inventory at December 31, 2013. The following summarized pre-consolidation financial statements are for the parent and the subsidiary for the year ended December 31, 2013: Investor Investee Income statement: Revenues $2,400,000 $321,000 Equity income 106,500 0 Expenses (1,600,000) (160,000) Net income $906,500 $161,000 Retained earnings statement: BOY retained earnings $752,000 $40,000 Net income 906,500 161,000 Dividends declared (64,000) (40,000) EOY retained earnings $1,594,500 $161,000 Balance sheet: Current assets $800,000 $101,000 Equity investment 234,500 - Noncurrent assets 4,000,000 300,000 Total assets $5,034,500 $401,000 Liabilities $2,640,000 $160,000 Common stock & APIC 800,000 80,000 Retained earnings 1,594,500 161,000 Total liabilities & stockholders' equity $5,034,500 $401,000 Based on this information, determine the balance for Noncontrolling Interest: $32,200 $58,625 $24,100 $18,625

Business
1 answer:
AleksandrR [38]3 years ago
5 0

Answer:

consolidation financial statements are for the parent and the subsidiary for the year =$ 1682,875

Explanation:

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Bonds provides more opportunities and offers than stocks.

Explanation:

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The method of determaining what a business will get in exchange for its products
liubo4ka [24]

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A. pricing

Explanation:

Pricing entails determining the value to attach to a product. It is the process through which a business decides how much customers will pay for its products. A business must consider the production costs and the desired margins when setting a price.

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Suppose you just bought a 25-year annuity of $8,200 per year at the current interest rate of 12 percent per year. What is the va
zhannawk [14.2K]

Answer:

64,313.74 ; 95,559.38 ; 47,283.11

Explanation:

by definition the present value of an annuity is given by:

a_{n} =P*\frac{1-(1+i)^{-n} }{i}

where a_{n} is the present value of the annuity, i is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:

1. P=8,200, n=25, i=12%

a_{n} =8,200*\frac{1-(1+12\%)^{-25}}{12\%}

a_{n} =64,313.74

2. P=8,200, n=25, i=7%

a_{n} =8,200*\frac{1-(1+7\%)^{-25} }{7\%}

a_{n} =95,559.38

3. P=8,200, n=25, i=17%

a_{n} =8,200*\frac{1-(1+17\%)^{-25} }{17\%}

a_{n} =47,283.11

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Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

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Farrick and Kenley want to form a business in which they invest money in exchange for stock ownership in their organization. Wha
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Thus the limited liability structure is most suitable for the two.

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