HW WK 3.7

Problem 4-14 (Algo) (LO 4-2, 4-4, 4-5) On January 1, 2023, French Company acquired 60 percent of K-Tech Company for $337,500 when K-Tech's book value was $437,500. The fair value of the newly comprised 40 percent noncontrolling interest was assessed at $225,000, At the acquisition date, K-Tech's trademark (10-year remaining life) was undervalued in its financial records by $80,000. Also, patented technology (5-year remaining life) was undervalued by $45,000. In 2023, K-Tech reports $17,500 net income and declares no dividends. At the end of 2024, the two companies report the following figures (stockholders' equity accounts have been omitted): Itens Current assets Trademarks Patented technology Liabilities Revenues Expenses Investment income French Company Carrying Amount $645,000 205,000 435,000 (415,000) (925,000) 475,000 Not given K-Tech Company Carrying Amounts $325,000 225,000 175,000 (145,000) (425,000) 325,000 a Consolidated net income b(1) Noncontrolling interest's share of the…

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Problem 2-28 (Algo) (LO 2-4, 2-7) On January 1, 2024, Casey Corporation exchanged $3,327,000 cash for 100 percent of the outstanding voting stock of Kennedy Corporation. Casey plans to maintain Kennedy as a wholly owned subsidiary with separate legal status and accounting information systems. At the acquisition date, Casey prepared the following fair-value allocation schedule: Fair value of Kennedy (consideration transferred) Carrying amount acquired Excess fair value to buildings (undervalued) to licensing agreements (overvalued) to goodwill (indefinite life) Cash Accounts receivable Inventory Investment in Kennedy Buildings (net) Licensing agreements Goodwill Total assets Accounts payable Long-term debt Common stock Immediately after closing the transaction, Casey and Kennedy prepared the following postacquisition balance sheets from their separate financial records (credit balances in parentheses). Accounts Additional paid-in capital Retained earnings Total liabilities and equities…

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Cn you help me to solve this question please? Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows:  Placid LakeScenicInventory$180,000 $94,000 Land 640,000  240,000 Equipment (net) 440,000  340,000   During 2017, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2017. In 2018, $130,000 in intra-entity sales were made…

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PROBLEM III. On January 1, 2020, P Corporation purchase 80% of S Company's ordinary share for P810,000. P37,500 of the excess is attributable to goodwill and the balance to depreciable asset with economic life of ten years. NCI is measured at fair value on the date of acquisition. On this date, shareholders' equity of the two companies were as follows: P Corporation S Company Ordinary share P1,312,500 P300,000 Retained earnings 1,950,000 525,000 On December 31, 2020, S Company reported net income of P131,250 and paid dividends of P45,000 to Party. Party reported earnings from its own operations of 356,250 and paid dividends of P172,500. Goodwill has been impaired and should be reported at P7,500 on December 31, 2020. 1. Net income attributable to parent 2. NCINIS

Please help me solve questions 1 2 & 3. Thank you! Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.   Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows:     Placid Lake Scenic Inventory $ 180,000   $ 94,000   Land   640,000     240,000   Equipment (net)   440,000     340,000       During 2017, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of…

Hello please help me with f-1 and f-2. Thank you!     Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year.   Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows:     Placid Lake Scenic Inventory $ 180,000   $ 94,000   Land   640,000     240,000   Equipment (net)   440,000     340,000       During 2017, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2017.…

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(TCO D) When Timber Co. acquired 75% of the common stock of Woody Corp., Woody owned land with a book value of $70,000 and a fair value of $100,000. What amount of excess land allocation would be included for the calculation of noncontrolling interest, according to SFAS 141(R)? Group of answer choices $70,000 $25,000 $17,500 $7,500 $0

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X) Alpha Company acquired 30 percent of the outstanding voting stock of Beta Company on January 1, 2020, for $254,000 in cash and had the ability to significantly influence the investee's operations and decision making, The book value of Beta's net assets on that date was $600,000, although one of the company's buildings, with a $40,000 carrying amount, was actually worth $120,000. This building had an 8-year remaining life. Beta owned a royalty agreement with a 5-year remaining life that was undervalued by $100,000. Alpha attributed to goodwill any unidentified excess cost. Beta reported net income of $100,000 in 2020 and $120,000 in 2021. Dividends of $20,000 and $30,000 are declared and paid in 2020 and 2021, respectively. Alpha sold inventory with an original cost of $24,000 to Beta during 2020 at a price of $40,000. Beta still held $10,000 (transfer price) of this amount in inventory as of December 31, 2020. These goods are to be sold to outside parties during 2021. During 2021,…

shobha

Hardev

Urgent Please!Cascade Ltd. acquired 100% of the voting shares of Tumble Inc. on December 31, 2023. At that time, Tumble had a client list with a fair value of $140,000 greater than the carrying value. The estimated useful life was 7 years. Which adjustments must be made in the December 31, 2025, consolidated statements in relation to the FVD of the client list? Question 1 options: A) Consolidated Sl: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 B) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $100,000 C) Consolidated Sl: decrease depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000 D) Consolidated Sl: increase depreciation expense by $20,000 and Consolidated SFP: increase the client list by $80,000

Problem 5-24 (Algo) (LO 5-7) Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2019, Padre transferred equipment to Sonora for $84,000. The equipment had cost $133,000 originally but had a $43,000 book value and five-year remaining life at the date of transfer. Depreciation expense is computed according to the straight-line method with no salvage value.   Consolidated financial statements for 2021 currently are being prepared. What worksheet entries are needed in connection with the consolidation of this asset? Assume that the parent applies the partial equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)   Consolidation Worksheet Entries PREPARE ENTRY *TA Note: Enter debits before credits.         Transaction Accounts Debit Credit 1                                                 PREPARE ENTRY ED BELOW Consolidation Worksheet Entries   Note: Enter…

Problem 7-28 (Static) (LO 7-5, 7-6) Parson Company acquired an 80 percent interest in Syber Company on January 1, 2020. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared.   The individual financial statements for the two companies as well as consolidated totals for 2021 follow (credit balances indicated by parentheses):     ParsonCompany   SyberCompany   ConsolidatedTotals Sales $ (800,000 )   $ (600,000 )   $ (1,280,000 ) Cost of goods sold   500,000       400,000       784,000   Operating expenses   100,000       100,000       202,500   Income of Syber   (74,800 )     0       0   Separate company net income $…

Problem 6-37 (Algo) (LO 6-7) Albuquerque, Incorporated, acquired 36,000 shares of Marmon Company several years ago for $900,000. At the acquisition date, Marmon reported a book value of $950,000, and Albuquerque assessed the fair value of the noncontrolling interest at $100,000. Any excess of acquisition-date fair value over book value was assigned to broadcast licenses with indefinite lives. Since the acquisition date and until this point, Marmon has issued no additional shares. No impairment has been recognized for the broadcast licenses. At the present time, Marmon reports $1,000,000 as total stockholders' equity, which is broken down as follows: Common stock ($12 par value) Additional paid-in capital Retained earnings $ 480,000 420,000 100,000 Total $ 1,000,000 View the following as independent situations: Required: a. & b. Marmon sells 8,000 and 5,000 shares of previously unissued common stock to the public for $30 and $20 per share. Albuquerque purchased none of this stock. What…

Items 7 - 9: On January 2, 2022, Phillips Corporation purchase 80 % of Signage Company's outstanding shares for P648,000. P30,000 of the excess is attributable to goodwill and the balance to an equipment with an economic life of ten years. Non-controlling interest is measured at its fair value on date of acquisition. On the date of acquisition, stockholders' equity of the two companies were as follows: Phillips Corporation Signage Company P 240,000 420,000 Ordinary shares P1,050,000 1,560,000 Retained earnings On December 31, 2022, Signage Company reported net income of P105,000 and paid dividends of P36,000 to Philips. Philips reported from its separate operations of P285,000 and paid dividends of P138,000. Goodwill had been impaired and should be reported at P6,000 on December 31, 2022. 7) What is the non-controlling interest in profit of Signage Company on December 31, 2022? A P 21,000 C. P 18,750 D. P 18,600 B. P 13,800 8) What is the consolidated profit attributable to parent…

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A1

PLEASE GIVE ANSWER 13&14 BOTH

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Required Information On January 1, 2022, Palmcroft Company acquired 100 percent of the outstanding voting shares of Salt River, Incorporated, for $600,000 cash. At January 1, 2022, Salt River's net assets had a total carrying amount of $420,000. Equipment (eight- year remaining life) was undervalued on Salt River's financial records by $80,000. Any remaining excess fair over book value was attributed to a database developed by Salt River (four-year remaining life), but not recorded on its books. Palmcroft applies the equity method to account for its Investment in Salt River. Each year since the acquisition, Salt River has declared a $20,000 dividend. Salt River recorded net income of $70,000 in 2022 and $80,000 in 2023. Selected account balances from the two companies' individual records were as follows: 2024 Revenues 2024 Expenses Item 2024 Income from Salt River Retained earnings, 12/31/24 Palmcroft $ 498,000 350,000 55,000 250,000 What is consolidated net income for Palmcroft and…

Required Information On January 1, 2022, Palmcroft Company acquired 100 percent of the outstanding voting shares of Salt River, Incorporated, for $600,000 cash. At January 1, 2022, Salt River's net assets had a total carrying amount of $420,000. Equipment (eight- year remaining life) was undervalued on Salt River's financial records by $80,000. Any remaining excess fair over book value was attributed to a database developed by Salt River (four-year remaining life), but not recorded on its books. Palmcroft applies the equity method to account for its Investment in Salt River. Each year since the acquisition, Salt River has declared a $20,000 dividend. Salt River recorded net income of $70,000 in 2022 and $80,000 in 2023. Selected account balances from the two companies' individual records were as follows: 2024 Revenues 2024 Expenses Item 2024 Income from Salt River Retained earnings, 12/31/24 Palmcroft $ 498,000 350,000 55,000 250,000 Salt River $ 285,000 195,000 175,000 What is…

1. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC’s identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the year ended December 31, 202X, SC reported a profit of P3,000,000 but did not pay any dividends. Moreover, the fair value of SC’s land increases by P1,500,000. However, the carrying amount of the land remains unchanged at P3,000,000. Given below is the Statement of Financial Position (SFP) of SC, together with the fair values of the identifiable assets, at December 31, 202X:   Carrying Amount Fair Value Cash and Receivables 4,000,000 4,000,000 Land 3,000,000 5,500,000…

Vinubhai

Manji