1- The following information relates to Panorama Corporation and its 70 percent-owned subsidiary, Scan, for the year 2022 is as follows (in thousands): Sales Income from Scan Cost of sales Depreciation expense Other expenses Panorama Scan $2.000 $800 98 (1,200) (400) (100) (80) (398) (180) I Required: a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022. (Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal to recorded book values. There were no intercompany transactions during 2021 and 2022.
1- The following information relates to Panorama Corporation and its 70 percent-owned subsidiary, Scan, for the year 2022 is as follows (in thousands): Sales Income from Scan Cost of sales Depreciation expense Other expenses Panorama Scan $2.000 $800 98 (1,200) (400) (100) (80) (398) (180) I Required: a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022. (Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal to recorded book values. There were no intercompany transactions during 2021 and 2022.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.1E
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Question
![1- The following information relates to Panorama Corporation and its 70 percent-owned
subsidiary, Scan, for the year 2022 is as follows (in thousands):
Sales
Income from Scan
Cost of sales
Depreciation expense
Other expenses
Panorama Scan
$2,000
$800
98
(1,200) (400)
(100) (80)
(398)
(180)
I
Required:
a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022.
(Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan
at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal
to recorded book values. There were no intercompany transactions during 2021 and 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6a09fa42-86ac-4b03-9854-5d278548d582%2Fb881d284-8af4-4f05-9ec8-b98da8be0196%2Fdwlx6ey_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1- The following information relates to Panorama Corporation and its 70 percent-owned
subsidiary, Scan, for the year 2022 is as follows (in thousands):
Sales
Income from Scan
Cost of sales
Depreciation expense
Other expenses
Panorama Scan
$2,000
$800
98
(1,200) (400)
(100) (80)
(398)
(180)
I
Required:
a. Prepare a consolidated income statement for Panorama Corporation and Subsidiary for 2022.
(Working paper not required) Assuming that Panorama acquired its 70 percent interest in Scan
at book value on January 1, 2021, when the fair value of Scan'assets and liabilities were equal
to recorded book values. There were no intercompany transactions during 2021 and 2022.
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