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
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:

You might be interested in
Skyler Manufacturing recorded operating data for its shoe division for the year. Sales $4,500,000 Contribution margin 500,000 Co
Anna71 [15]

Answer:

Controllable margin= $300,000

Controllable margin in %= 33.3%

Explanation:

Controllable margin is sales revenue less controllable variable costs and fixed cost.

Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs

Controllable margin= contribution margin - fixed costs

                                     = 500,000 - 200,000= 300,000

Controllable margin in %= 300,000/900,000 × 100 =33.3%

Controllable margin in %= 33.3

3 0
3 years ago
Which factor increases the risk of IS project delays? A. loss of hardware B. shortage of technical staff C. poor password practi
murzikaleks [220]

Answer:

D.loss of equipment because without the right equipment needed it is gonna delay the IS project

Explanation:

5 0
3 years ago
Read 2 more answers
What are mutual funds are
lana [24]

Answer:

Mutual Funds are simply a way to pool money together and buy more stocks. You invest into a mutual fund along with many other people. Then your pooled money is invested by the manager of the mutual fund. They are generally conisdered safe as they are run by "stock gurus".

3 0
2 years ago
Under its executive stock option plan, W Corporation granted options on January 1, 2021, that permit executives to purchase 15 m
stiv31 [10]

Answer:

$270m

Explanation:

We can calculate the amount that will increase W's shareholder's equity when the options are exercised as follows

Increase in equity =  No Options Granted x Exercise price at the date of grant

Increase in equity = 15million x $18  

Increase in equity = $270m

       

5 0
3 years ago
At the beginning of 2009, Little Company bought a bond with a $18 million face value and an annual coupon rate of 7.4%. It has a
aliya0001 [1]
Coño coño means coño coño
5 0
3 years ago
Other questions:
  • Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre’s Soup Spoons Bistro with Dierdre’s payment
    7·1 answer
  • Can't print says: printer is performing another operation even when canceled
    13·1 answer
  • 10 points.............​
    15·2 answers
  • The following are several figures reported for Allister and Barone as of December 31, 2018.
    9·2 answers
  • The accounting records of Compass Point Wireless include the following as of December​ 31, 2016​:
    6·1 answer
  • You are an automotive engineer working on an application that will automatically parallel park a car. the intelligent technique
    11·1 answer
  • Raising Bulls, Inc., has current assets of $5,100, net fixed assets of $23,800, current liabilities (payables and accruals) of $
    12·1 answer
  • Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point directly to the left of it. Assu
    15·1 answer
  • A company had total liabilities of $275,000 and the owner’s equity was $1,722,000. According to the fundamental accounting equat
    9·1 answer
  • On January 1, 2015, Johnson Company purchased a delivery truck for $72,000, paying $7,200 cash and financing the rest with a 4 y
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!