The working paper eliminating entry recorded by LetLenilead2022 on January 1, 2022, date of acquisition of thesubsidiary follows:Common Stock - Subsidiary Company200,000APIC – Subsidiary Company300,000Retained earnings – Subsidiary Company250,000Inventory75,000Fixed Assets (Net)105,000Patent70,000Goodwill200,000Investment in Subsidiary920,000Non-controlling Interest280,000Of the goodwill recorded, 30,000 belongs to the NCI.Determine the percentage of the voting shares of the subsidiary acquired by LetLenilead2022.

Given as, Full goodwill:- It includes both parent and subsidiary goodwill. Full goodwill= 2,00,000…

Answered: 200,000 300,000 250,000 75,000 105,000

Business

Accounting

200,000 300,000 250,000 75,000 105,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Item Data 150 Accidents per 100 000 000 vehicle- kilometers in 6 m lanes Accidents per 100 000 000…

A: From the given information, Number of accidents avoided = 7,500,000100,000,000×(150-90)=4.5 Average…

Q: Calculate the horizontal analysi

A: Horizontal Analysis: It is called the horizontal analysis of the profit and loss statement also…

Q: QUESTION ONE [30] Topfront Limited owns two buildings: - A Head office building located in Cape Town…

A: The objective of the question is to prepare the journal entries for Topfront Limited for the year…

Q: 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Project A Project B Project C Project D Table 1: The Planned Value of Work Done Schedule Feb March…

A: Planned Value- Planned Value means the approved value or the planned value which is desirable to…

Q: ABC Inc. invested $150,000 to help fund a company expansion project scheduled for 36 months from…

A: We will compute the Future value of the investment amount of $150,000. Future value is the amount at…

Q: A consulting company has designed the accompanying spreadsheet model to compute a project's revenues…

A: Answer:The question describes a situation where a consulting company's spreadsheet model is used to…

Q: The following data are projected for a possible investment project: 1 2 3 4 Revenues $130,000…

A: Initial Cash outlay = Initial investment + Working capital required

Q: Pesos, P72,000 P15,000 Parcels 20,000 What is Sender's estimated cost for mailing 12,000 parcels? a.…

A: The question is multiple choice question. The question is related to estmating cost of 12000…

Q: $ 90,000 $ 40,000 $ 35,000 $ 15,000 $ 4,000 $ 5,000 $ 20,000 $ 1,000 $ 2,500 $ 105,000 $ 6,000 $…

A: Total Fixed Costs are the costs which are to be paid or settled irrespective of the number of units…

Q: 956 Exercise Company X has a capital budget of OMR1,000,000. Company has the following options to…

A: Formula: Net Present Value = Present Value of Cash inflows – Initial investment Present Value of…

Q: 34

A: Annual Rate of return is the return made on investment over a period which is annualized. It is…

Q: £140,000 ÷ £20 = 70,000 Units How this is possible ?

A: Break-Even point in Units = Fixed cost/Contribution margin per unit

Q: What is the relationship between profitability and efficiency, liquidity, investment, and efficiency…

A: (1) Financial Ratios will express financial Quantity concerning another financial ratio. (2) These…

Q: Creekside Engineering wants to establish an engineering scholarship in honor of its founder, Jane…

A: Capitalized cost is referred as an expenses that are added based on the cost of the fixed asset on…

Q: A firm with a WACC of 10% is considering the following mutually exclusive projects: Which project…

A: Net Present Value(NPV) is amongst one of the modern techniques of capital budgeting which considers…

Q: The following data are projected for a possible investment project: 1 2 3 4…

A: Total cash flows in year 4 includes operating cash flows and Recovery of working capital and after…

Q: CH 5#9 The A Corporation is considering the construction of a new plant to build a component part…

A: Net present value is a quantitative technique used to calculate the present value of the cash flows…

Q: ɪꜱ ᴘʜ

A: Perpetual is the term in capital budgeting which is used for indifinite life. Here in the given…

Q: Question 1: For the given data which alternative is better using present worth analysis? Use i- 12%…

A: Present worth analysis can be defined as a method of analysis in all the future benefits and costs…

Q: 25. Winston Corp, manufactures widgets. The company is setting up a new 7-year project i Jersey. The…

A: The OCF refers to the generation of cash by the company during its normal operations. It helps the…

Q: NPV $40,000 $20,000 $10,000 SO $50 $100 Cost of Goods Sold $150 The graph above shows the break-even…

A: NPV is a popular capital budgeting metric. NPV stands for Net Present Value. It is the sum of…

Q: A project will generate before tax cost savings of $110,000 per year, for five years, create…

A: Operating cash flow is cash flow from core business activties after doing payments for all necessary…

Q: PA6. LO 11.3 Gimli Miners recently purchased the rights to a diamond mine. It is estimated that…

A: Depletion expense is a non-cash expense in a accrual accounting method which is used to allocate the…

Q: What is the NPV of a project that costs $506,000 and returns $295,000 for each of the next 3 years…

A: NPV means Net present value.It is a capital budgeting technique used for making investment…

Q: We find the following information on NPNG (No-Pain-No-Gain) Inc.: EBIT = $2,000,000 Depreciation =…

A: Here, EBIT is $2,000,000Depreciation is $250,000Change in net working capital is $100,000Net capital…

Q: Project: German Year 0: -$650,000 Year 1: $220,000 Year 2: $240,000 Year 3: $245,000 Year 4:…

A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment by…

Q: this is Capital budgeting tools ch 12 p 25 build a model

A: Answer:(d).Understanding the Crossover Rate: The crossover rate is the discount rate at which the…

Q: March 120,000 120,000 70,000 100,000 Аprl 120,000 140,000 90,000 120,000 May 200,000 140,000 100,000…

A: Contribution of the Project Sales. xxxxx-Variable cost.…

Q: Find Profit for the project, which its cash flow is shown below 95 x 10° U 700,000 U دفعات شهرية U…

A: According to the cash flow diagram, there is a cash outflow in Year 0, 4,5,6,7 and 8. Present value…

Q: Calculate the property tax rate required to meet the budgetary demands of the Following communities.…

A: Property tax is a tax which is levied on the property. Property tax rate is the rate at which…

Q: $300.000 $210.000 $340.000 $850.000 ts $180.000 $180.000 $220.000 $590,000 50.000 50000 40.000…

A: Solution: Change in net income = Avoidable fixed cost - contribution margin lost on Product G = 0 -…

Q: Again, you are considering two mutually exclusive projects. Machine A: This project costs $10…

Q: Hephzibah Limited is just about to buy a new textile machine for GHS100,000. Although its maximum…

A: When the assets are replaced in perpetuity, there will be a best replacement cycle that increases…

Q: ᴄᴏɴꜱɪᴅᴇʀ ᴀ ᴘʀᴏᴊᴇᴄᴛ ᴡʜɪᴄʜ ɪɴᴠᴏʟᴠᴇꜱ ᴛʜᴇ ɪɴᴠᴇꜱᴛᴍᴇɴᴛ ᴏꜰ ᴘʜᴘ 100,000 ɴᴏᴡ ᴀɴᴅ ᴘʜᴘ 100,000 ᴀᴛ ᴛʜᴇ ᴇɴᴅ ᴏꜰ…

A: Net Present value is the net value added by a capital budgeting project/decision. It represents the…

Q: Please show work or formulas/excel format. Thank you!

A: Break-Even Sales formula:

Q: 24. Assume that your company faces the following investment opportunities: Initial cash outflow PI…

A: The question is related to the Capital Rationing . Capital rationing refers to a situation where a…

Q: Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: Calculate the EBIT, Depreciation, Changes in NWC, and net capital spending for the next four years.

A: EBIT (Earnings Before Interest and Tax) shows the profitability of a business. It indicates the…

Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

The working paper eliminating entry recorded by LetLenilead2022 on January 1, 2022, date of acquisition of the
subsidiary follows:
Common Stock - Subsidiary Company
200,000
APIC – Subsidiary Company
300,000
Retained earnings – Subsidiary Company
250,000
Inventory
75,000
Fixed Assets (Net)
105,000
Patent
70,000
Goodwill
200,000
Investment in Subsidiary
920,000
Non-controlling Interest
280,000
Of the goodwill recorded, 30,000 belongs to the NCI.
Determine the percentage of the voting shares of the subsidiary acquired by LetLenilead2022.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

FIll in the blanks 1. _____ = 27,000 + 39,000 - 33,000 + 32,000 - 3,000 2. 51,000 = ____ + 28,000 - 6,000 + 7,000 - 12,000 3. 79,000 = 36,000 + ____ - 5,000 + 18,000 - 11,000
2019 2020 sales price per unit R15 R19 variable cost per unit R6 R7 fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 current assets R450 600 R560 700 current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 100 Cost of sales R390 000 R475 000 Q.5.1.2 Compare the results of the 2019 and 2020 break‐even point and explainwhy there might be a difference.
Clarita Contracting builds roads, tunnels, bridges, and other transportation infrastructure. The following are the budgeted costs and time (months) to a given stage of completion for a project to upgrade a bridge to current standards. The project was originally estimated to take 25 months to complete. Also presented are the actual results through the first 11 months of the project. Percentage Complete 0% 4% 8% 12% 16% 20% 24% 28% 32% 36% 40% 44% 48% 52% 56% 60% 64% 68% 72% 76% 80% 84% 88% 92% 96% 100% Cost ($000) Budget 0 213 471 775 1,125 1,520 1,961 2,447 2,979 3,557 4,180 4,849 5,563 6,323 7,129 7,980 8,877 9,819 10,807 11,841 12,920 14,045 15,215 16,431 17,693 19,000 Actual 0 112 266 464 706 990 1,317 1,688 2,102 2,559 3,059 3,063 4,189 4,819 Months to Reach Budget Actual 0 5 7 8 9 10 11 12 13 14 14 15 16 17 18 18 19 20 20 21 22 22 23 24 24 25 0 1 1 2 3 4 4 5 6 7 8 9 10 11
a. $6.205 13 Ob $4,978 38 Oc $4,148 44 Od $3,125 26 A new machine can be purchased for $50.000. It is expected useful life is 9 years, with a salvage value of $5,000. Annual revenues will be $22 000/year and annual expanses will be S8,000/year Over the 9 years study penod, If the MARR is 10%, based on AW analysis, the project is wered of 3 00 estion Select one: O a Not Acceptable and its AW-S2.345 b. Not ble and its AW =-$3 281 OC Acceptable and its AW $4257 Od Acceptable and its AW =$6178 Oe Acceptable and its AW =$5688 NEXT PAGE ANFO CONTACTUS GET SOCIAL 83 F Haze 中x)
Year 0 2 Project A -$50,000 $24,200 $16,800 $46,500 Project B -$45,000 $39,000 $18,000 $18,000 Assume these projects are mutually exclusive and the cost of capital is 12.6%. Which of the following statements are true? A. The payback period of project A is 2.19 years. B. You'll accept project A since its NPV is about $872.85 greater than that of project B. C. You'll accept project B since its payback period is shorter than project A. D. Both (A) and (B) are true. E. Both (A) and (C) are true.
FIN 6020 v19f CJ Lance Co. (Ch 10) CJ Lance Co. is considering two Mutually Exclusive Projects Project Alpha-1 is expected to generate cash flows of $3,250 each year of its 5 year life. The project will cost $11,000. Project Beta-2 is expected to produce $8,000 in cash flows per year. It also has a 5 year life, and costs $27,750. The Cost of Capital is 12% and these projects are of normal risk. a. Calculate the NPV, IRR, and MIRR for each of the projects. а. b. Given that they are mutually exclusive, which project should be selected based on each ranking method? С. Now which project should be chosen? Why?
attached in screenshot thank sfor help 13lpyl13 y1 3y ele leqpfq e p
Popper Company acquired 80% of the common stock of Cocker Company on January 1, 2022, when Cocker had the following stockholders' equity accounts. Common stock 40,000 shares outstanding $ 140,000 105,000 476,000 $ 721,000 Additional paid-in capital Retained earnings Total stockholders' equity To acquire this interest in Cocker, Popper paid a total of $682,000 with any excess acquisition date fair value over book value being allocated to goodwill, which has been measured for impairment annually and has not been determined to be impaired as of January 1, 2025. Popper did not pay any premium when it acquired its original interest in Cocker. On January 1, 2025, Cocker reported a net book value of $1,113,000 before the following transactions were conducted. Popper uses the equity method to account for its investment in Cocker, thereby reflecting the change in book value of Cocker. On January 1, 2025, Cocker issued 10,000 additional shares of common stock for $21 per share. Popper did not…
attachedin ss thanks gw oy5 35 73 82 3
Q29 Consider the following costs associated with all work packages (WP A and WP B) of a project: WP A B Labor hours Type 1 30 5 Labor hours Type 2 30 20 Labor hours Type 3 10 60 The rate of Labour hours Type 1 is $15. The rate of Labour hours Type 2 is $25. The rate of Labour hours Type 3 is $35. Calculate the total cost of the project. Material Equipment $500 $200 $100 $1,000 Subcontracts $8000 $2000 Other $300 $400
27. Problems with IRR [LO5] McKeekin Corp. has a project with the following cash flows: Year 0 1 2 Cash Flow $20,000 -26,000 13,000 What is the IRR of the project? What is happening here?
*6 The Chester E Peters recreational center, in its current form, was completed in three phases. Phase 1 was completed in 1980 and cost $3.3M at that time. Phase 2, which cost $8.2M at the time, was completed in 1995. Phase 3 was completed in 2013 and cost $12.5M. How much would the entire project cost (in terms of today’s dollar) if built today (2021)? The BCI values are 6200, 4600, 3300, and 1650 in 2021, 2013, 1995, and 1980, respectively.