Chapter 4_Coca-Cola & Kimball International_Completed

Question: ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000.  At year-end, 30 percent remained ClipRite sold ProForm inventory costing $200,000 during 2021.  At yearend, 1 percent is left. What are the consolidated balances?   Proform acquired 70 percent of ClipRite on June 30, 2020, for $910,00 in cash.  Based on ClipRites acquistion-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year.  No goodwill was recognized in the acuisition.  The noncontrolling interest fair value was assessed at $390,000 at the acquisition date.  The 2021 financial statements are as follows:       Proform ClipRite Sales   -800,000 -600,000 Costs of goods sold   535,000 400,000 Operating expenses   100,000 100,000 Dividend Income   -35,000     Net Income -200,000 -100,000 Retained earning, 1/1/21 -1,300,000 -850,000 Net Income   -200,000 -100,000 Dividend declared   100,000…

Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016. Intercompany purchases and sales and inventory data for 2016, 2017, and 2018, are as follows: Sales by Son to PopIntercompany Profit in Pop’s Inventory at December 312016 $200,000 $15,000 2017  150,000  12,000 2018  300,000  24,000 Selected data from the financial statements of Pop and Son at and for the year ended December 31, 2018, are as follows: PopSonIncome Statement Sales $900,000 $600,000 Cost of sales  625,000  300,000 Expenses  225,000  150,000 Income from Son  124,200   — Balance Sheet Inventory $150,000 $ 80,000 Retained earnings December 31, 2018  425,000 220,000 Capital stock  500,000 300,000 RequiredPrepare well-organized schedules showing computations for each of the following: Consolidated cost of sales for 2018Noncontrolling interest share for 2018Consolidated net income for 2018Noncontrolling interest at December 31, 2018

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Pal Corporation acquired a 60% interest in Sun Corporation on January 1, 2020, at a cost equal to book value and fair value. Sun reports net income of $880,000 for 2020. Sun regularly sells merchandise to Pal at 120% of Sun’s cost. The intercompany sales information for 2020 is as follows: Selling price for intercompany transaction                                   $672,000 Value of inventory unsold by Pal                                                  132,000   Instructions: Determined unrealized profit in Sun as at 31 December 2020 Compute Pal income from Sun as at 31 December 2020

Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows:   Year Cost to Acker Transfer Price Amount Held by Howell at Year-End 2020 $ 55,000 $ 75,000 $15,000 2021 $ 70,000 $ 110,000 $55,000     Howell reported net income of $100,000 in 2020 and $120,000 in 2021 while paying $40,000 in dividends each year.   What is the Equity in Howell Income that should be reported by Acker in 2020?   Multiple Choice   $10,000.   $24,000.   $36,000.   $38,400.   $40,000.

Acker Inc. bought 40% of Howell Co. on January 1, 2020 for $576,000. The equity method of accounting was used. The book value and fair value of the net assets of Howell on that date were $1,440,000. Acker began supplying inventory to Howell as follows: YEAR/ COST TO ACKER/ TRANSFER PRICE/ AMOUNT HELD BY HOWELL AT YEAR-END: 2020/ $55,000/ $75,000/ $15,000 2021/ $70,000/ $110,000/ $55,000 Howell reported net income of $100,000 in 2020 and $120,000 in 2021 while paying $40,000 in dividends each year. what is the equity in Howell income that should be reported by Acker in 2021? options are $32,000 - $41,600 - $48,000 - $49,600 - $50,600

The following are several figures reported for Allister and Barone as of December 31, 2021: Inventory Sales Investment income Cost of goods sold Operating expenses Allister Barone $ 610,000 $ 410,000 1,220,000 1,020,000 not given 610,000 285,000 510,000 355,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $78,000 that was unrecorded on its accounting records and had a six- year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $141,000 to Allister for $202,000. Of this amount, 20 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021: Inventory Sales Cost of goods sold Operating expenses Net income attributable to…

Blupa Ltd acquired a 25% interest in Trinity Ltd for $145,000 on 1 July 2020. At that date, shareholders' equity of Trinity Ltd consisted of: Share Capital 280,000 Retained Earnings 86,000 All identifiable assets and liabilities of Trinity Ltd were recorded at fair value except for the machinery which was recorded at $25 000 below its fair value on 1 July 2020. Machinery is depreciated at 25% straight line. Information about income and changes in equity for Trinity Ltd for the year ended 30 June 2021 is as follows: Trinity Ltd Revenue 260,000 Expenses 120,000 Profit before income tax 140,000 Income tax expense 28,000 Profit for the period 112,000 Retained earnings (1/7/20) 86,000 198,000 Dividend paid 12,000 Dividend declared 35,000 47,000 Retained earnings (30/6/21) 151,000

Presented below are the financial balances for the BonGiovi Company and the TerensCompany as of December 31, 2017, immediately before BonGiovi acquired Terens. Also included are the fair values for Terens Company's net assets at that date (thousands of US$).                                             BonGiovi BV31.12.2017           Terens BV 31.12.2017    Terens FV 31.12.2017Cash                                              870                                                     240                             240Receivables                                  660                                                     600                             600Inventory                                     1,230                                                    420                             580Land                                            1,800                                                    260                            250Buildings (Net)                             1,800…

The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Inventory Sales Investment income Cost of goods sold Operating expenses $ 620,000 $ Barone 420,000 1,240,000 1,040,000 not given 620,000 290,000 520,000 360,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $80,000 that was unrecorded on its accounting records and had a four-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $142,000 to Allister for $204,000. Of this amount, 10 percent remains unsold in Allister's warehouse at year- end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021: Inventory Sales Cost of goods sold Operating expenses Net income attributable to…

The following are several figures reported for Allister and Barone as of December 31, 2021: Inventory Sales Investment income Cost of goods sold Operating expenses Allister Barone $ 530,000 $ 330,000 860,000 1,060,000 not given 530,000 245,000 430,000 315,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $62,000 that was unrecorded on its accounting records and had a four-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $133,000 to Allister for $186,000. Of this amount, 10 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021:

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Alford Company and its 80 percent–owned subsidiary, Knight, have the following income statements for 2018:Additional Information for 2018• Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight.• Intra-entity gross profits in inventory at January 1 were $6,000, but at December 31 they are $9,000.• Annual excess amortization expense resulting from the acquisition is $11,000.• Knight paid dividends totaling $20,000.• The noncontrolling interest’s share of the subsidiary’s income is $9,800.• During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively.Using either the direct or indirect method, compute net cash flows from operating activities during the period for the business combination.