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vekshin1
3 years ago
15

Pepe, Incorporated acquired 60% of Devin Company on January 1, 2018. On that date Devin sold equipment to Pepe for $45,000. The

equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2018 and 2019, respectively. Pepe uses the equity method to account for its investment in Devin.What is the consolidated gain or loss on equipment for 2018
Business
1 answer:
CaHeK987 [17]3 years ago
8 0

Answer: $9000

Explanation:

Based on the values given in the question, the consolidated gain or loss on equipment for 2018 would be calculated as:

Cost of equipment = $120,000

Less accumulated depreciation = $66,000

Less: Amount Devin sold equipment to Pepe = $45,000

Consolidated loss= $120,000 - $66000 - $45000

= $9000

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Answer:

a. $ 900 underapplied

Explanation:

Based on the data provided we conclude that the factory overhead is applied on the basis of direct labour hours.

Determination of Overhead rate

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Direct labour hours                                                                  23,000 hours

Overhead rate per direct labor hour is $ 115,000/ 23,000 = $ 5 per direct labor hour

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Applied Overhead = $ 5 * 35,000                                        $ 175,000

Actual Overhead                                                                    <u>$ 175,900</u>

Underapplied Overhead                                                        $(     900)

6 0
4 years ago
Which of the following would not be used to create a personal balance sheet?
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Answer:

A. Reverse logistics systems are usually less cost- efficient than forward-based systems.

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7 0
3 years ago
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Vanyuwa [196]

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8 0
3 years ago
Steak Company acquired a building valued at $170,000 for property tax purposes in exchange for 10,000 shares of its $5 par commo
Yuliya22 [10]

Answer:

$160,000

Explanation:

Data provided in the question:

Value of the building acquired = $170,000

Number of shares exchanged = 10,000

Selling price of the stocks = $16 per share

Now,

The amount for which the building will be recorded by Steak Company is the market value of the shares that has been exchanges to acquire the building.

Therefore,

The amount for which the building will be recorded by Steak Company

= Number of shares exchanged × Selling price of the stocks

= 10,000 × $16

= $160,000

3 0
3 years ago
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