At the beginning of 2024, XYZ Corp. purchased 25% of Moon Tech Inc. for $48 million. At the time of purchase, the carrying value of Moon Tech's net assets was $120 million. The fair value of Moon Tech's depreciable assets was $16 million above their book value. During 2024, Moon Tech reported a net income of $75 million and declared and paid dividends of $25 million. Calculate the amount of purchased goodwill: A. $16 million B. $34 million C. $14 million D. None of the above
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- On January 1, 2024, Hokie Company paid $200,000 to purchase 25% of Cavalier Company. This investment allowed Hokie Company to hold significant influence over Cavalier's operations. Cavalier reported total 2024 net income of $40,000, other comprehensive income of $3,000, and dividends of $8,000. The fair value of Hokie's investment in Cavalier Company at 12/31/2024 was $220,000. Based on the above information, use the dropdown lists to answer the following questions: 1. The investment balance at 12/31/2024 is: $212,750 2. The equity income balance on the income statement for the year ended 12/31/2024 is: $10,000 3. The equity income balance in other comprehensive income for the year ended 12/31/2024 is: 750On July 1, 2020, Blue George Company purchased 25% interest of Pink Conrad for P150,000. Blue George incurred transaction cost equal to 5% on the transaction price. On October 1, 2020, Pink Conrad declared dividends of P80,000. At the end of 2020, Pink Conrad reported net income of P200,000. On January 1, 2021, the fair values of Pink Conrad's net assets were as follows:Current Assets - P100,000;Equipment - P150,000;Patent – P120,000;Land - P50,000;Buildings - P300,000; andLiabilities - P80,000. On January 1, 2021, Blue George Company purchased 50% interest of the Pink Conrad Company by issuing 100,000 shares of its P1 par value stock when the fair value of the stock was P6.20. Pink Conrad paid for the legal fees of P10,000 and securities SEC registration of P20,000 which was reimbursed by Blue George. The Patent of Pink Conrad refers to the technology purchased by Pink Conrad from Blue George years ago. Blue George had an outstanding unearned revenue related to the Patent amounting to…On January 1, 2018, Harrison Ltd acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The fair value of the total net assets of Starr Company was assessed at $1,200,000. Starr Company reported a net profit of $70,000 in 2018 and $90,000 in 2019, with dividend declarations of $30,000 each year. Apart from its investment in Starr Company, Harrison had a net profit of $220,000 in 2018 and $260,000 in 2019 and declared dividends of $40,000 each year. During the year ending 31 December 2019, Harrison sold inventory to Starr for a price of $90,000. The inventory costs Harrison Ltd $50,000 to produce. 40% of the inventory is still on hand of Starr Company as at 31 December 2019. The management of Harrison Ltd measures non-controlling interest at fair value. Required: Based on the information given, what should be the total balance of the non-controlling interests reported in the consolidated financial statement as at December 31 2019 (Ignore the…
- In 2020, Falcon Enterprises purchased Eagle Corp. for $22,000,000 cash. At the time of purchase, Eagle Corp.'s assets had a market value of $28,000,000, and the liabilities had a market value of $20,000,000. Additionally, Eagle Corp.'s assets had a book value of $18,000,000, and the liabilities had a book value of $12,000,000. What amount of goodwill is recorded? a) $10,000,000 b) $8,000,000 c) $14,000,000 d) $4,000,000On December 31, 2024, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $11.2 million. The robotics business segment qualifies as a component of the entity, according to GAAP. Consider the following additional information: The book value of the assets of the segment was $8.1 million at the time of the sale. The income from operations of the segment during 2024 was $5.1 million. Pretax income from other continuing operations for the year totaled $13.1 million. The income tax rate is 25 %. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4.ABC Corp. acquired 40% of DEF Corp. by spending Rp1.000.000 cash on January 1, 2020. Book value of DEF’s net assets at acquisition date was Rp1.500.000; Inventories were undervalued for Rp100.000 and note payable was overvalued for Rp200.000. All inventories are sold in 2020 and note payable will be due at the end of 2023. At the end of 2020, DEF announced net loss Rp250.000. The ending balance of “Investment in DEF” account at the end of 2020 will be:
- S On December 31, 2024, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $10.8 million The robotics business segment qualifies as a component of the entity, according to GAAP. Consider the following additional information: • The book value of the assets of the segment was $7.9 million at the time of the sale. • The income from operations of the segment during 2024 was $4.9 million. • Pretax income from other continuing operations for the year totaled $12.9 million. . The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. REVOLUTIONARY INDUSTRIES Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes Income tax expense Income…On December 31, 2024, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $9.6 million. The robotics business segment qualifies as a component of the entity, according to GAAP. Consider the following additional information • The book value of the assets of the segment was $7.3 million at the time of the sale. . The income from operations of the segment during 2024 was $4.3 million. • Pretax income from other continuing operations for the year totaled $12.3 million. . The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxes. Note: Loss amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions. For example, $4,000,000 rather than $4. REVOLUTIONARY INDUSTRIES Partial Income Statement For the Year Ended December 31, 2024 Income from continuing operations before income taxes. Income from continuing…On January 1, 2025, John Paul Jones Corp. purchased 30% of Sky Tech Inc. for $45 million. This acquisition gave John Paul Jones significant influence over Sky Tech. At the date of acquisition, the book value of Sky Tech's net assets was $75 million and their fair value was $90 million. The difference was attributed to the fair value of equipment exceeding book value, and the remaining useful life of this equipment was 5 years. For 2025, Sky Tech reported a net income of $75 million and declared and paid $20 million in dividends. Relative to its investment in Sky Tech, the amount of investment income reported by John Paul Jones Corp. on it’s year end December 31, 2025 income statement is: $6 million. $16.5 million. $22.5 million. $21.6 million. The total amount that John Paul Jones Corp. would report for its investment in Sky Tech Inc. on itsDecember 31, 2025 balance sheet is: $67.5 million. $61.5 million. $60.6 million. $66.6 million. Assume John Paul cannot exercise significant…
- The Skywalker Corporation finalized the sale of its droid manufacturing division for $9.4 million on December 31, 2024, at the close of the fiscal year. The droid manufacturing business segment qualifies as a component of the entity, according to GAAP Consider the The income from operations of the segment during 2024 was $4.2 million. Pretax income from other continuing operations for the year totaled $12.2 million. The income tax rate is 25%. Prepare the lower portion of the 2024 income statement beginning with income from continuing operations before income taxesSubject - account Please help me. Thankyou.On April 1, 2020, Republic Company sold equipment to its wholly owned subsidiary, Barre Corporation, for $40,000. At the time of the transfer, the asset had an original cost (to Republic) of $60,000 and accumulated depreciation of $25,000. The equipment has a five year estimated remaining life. Barre reported net income of $250,000, $270,000 and $310,000 in 2020, 2021, and 2022, respectively. Republic received dividends from Barre of $90,000, $105,000 and $120,000 for 2020, 2021, and 2022, respectively. Assume that Republic uses the cost method to account for its investment in Barre. Compute the [ADJ] consolidating entry necessary for 2021. Select one: a. $155,750 b. $205,000 c. $320,750 d. $165,000 e. $245,750 x Your answer is incorrect. The correct answer is: $155,750
