Cayman Inc., brought 30% Maya Company on January 1, 2013, for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held at year-End 2013 $30,000 2014 $48,000 $45,000 $80,000 $9,000 $20,000 Maya reported a net income of $100,000 in 2013 and $120,000 in 2014 while paying $40,000 in dividends each year. What is the amount of unrealized inventory profit to be deferred on December 31, 2014? a. $8,000 b. $3,600 c. $4,000 d. $1,500 e. $2,400

Cayman Inc., brought 30% Maya Company on January 1, 2013, for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held at year-End 2013 $30,000 2014 $48,000 $45,000 $80,000 $9,000 $20,000 Maya reported a net income of $100,000 in 2013 and $120,000 in 2014 while paying $40,000 in dividends each year. What is the amount of unrealized inventory profit to be deferred on December 31, 2014? a. $8,000 b. $3,600 c. $4,000 d. $1,500 e. $2,400

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 5RE: Dani Corporation signed a binding commitment on December 2 to purchase inventory for 300,000 cash on...

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Cayman Inc. bought 25% of Maya Company on January 1, 2022 for $800,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $2,100,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held by Cayman at Year-End 2022$ 30,000 $ 45,000 $ 8,400 2023$ 48,000 $ 80,000 $ 20,000 Maya reported net income of $100,000 in 2022 and $120,000 in 2023 while paying $40,000 in dividends each year. What is equity in Maya income that should be recognized by Cayman in 2023? O $25,000 Ob $28,700 O $2,000 Od $31,300 e$30,000
The following information pertain to the only sale of inventory transaction of Orion Company in 2023: Date of sale - December 23, 2023; No. of units sold - 10,000; Selling price -P150 per unit; Right to return period - within 15 days: Estimated return for cash refund within 15 days - 5% of units sold; Estimated return for exchange of equal or greater value of merchandise - 10%; Cost per unit - P100 Question:- Compute the amount of sales to be recognized in 2023. A. P1,500,000 B. P1,475,000 C. P1,425,000 D. P1,000,000 - What amount of cost goods sold will appear in the 2023 statement of income? A. P925,000 B. P950,000 C. P975,000 D. P1,000,000
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 2020? Multiple Choice $10,000. $24,000. $36,000. $38,400. $40,000.
1. The inventory on hand on December 31, 2020 for Univ Company is valued at P1,500,000. The entity's policy on its selling is 150% of cost. The following were not included in the inventory: 1. Purchases of goods still in transit, shipped FOB Destination, with price of P150,000, which includes freight charge of P25,000 2. Goods held on consignment by Univ at a sales price of P100,000, excluding 20% commission based on sales price. Freight paid by Univ is P10,000. 3. Goods sold in transit FOB Destination with invoice price of P245,000 which includes a freight charge of P20,000 to deliver the goods. 4. Purchases of goods still in transit FOB Shipping point with invoice of P300,000. Freight cost, P50,000 5. Goods out on consignment with sales price of P300.000. Shipping cost to consignee is P20,000. What is the correct amount of inventory at December 31 2020?
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Pepper bought 70% of Salt on 1 July 2016. The following are the statements of profit or loss of Pepper and Salt for the year ended 31 March 2017. Pepper Salt GHS’000 GHS’000 Revenue 31,200 10,400 Cost of sales (17,800) (5,600) Gross profit 13,400 4,800 Operating expenses (8,500) (3,200) Profit from operations 4,900 1,600 Investment income 2,000 Profit before tax 6,900 1,600 Tax…
If P acquired 90% of the outstanding common stock of S company. During 2015, P Company sells merchandise amounted 1800000 to S Company at 20% above cost. S Company had in its inventory half of the amount of goods purchased from P during 2015. If P company uses cost method, what eliminating entry will be recorded by P in 2016 to eliminate the Unrealized Profit in Inventory related to 2015? Select one: a. DR. Cost of goods sold 150000 CR. Inventory (ending) 150000 b. DR. Retained earnings 1/1 900000 CR. Inventory (ending) 900000 c. DR. Retained earnings 1/1 135000, NCI 15000 CR. Cost of goods sold 150000 d. DR. Retained earnings 1/1 150000 CR. Cost of goods sold 150000 e. DR. Retained earnings 1/1 810000, NCI 90000 CR. Cost of goods sold 900000
Pearl company acquired 80% of Coral company on January 1, 2020. On December 2021 Pearl reported sales of $1,700,000, cost of goods sold of $800,000 and operating expenses of 250,000. Coral reported sales of $900,000, cost of goods sold of $400,000 and operating expenses $120,000. Coral sold inventory costing $150,000 to Pearl for $200,000. 40% of the goods transferred remain in ending inventory at transfer price. Required: 1. Calculate consolidated cost of goods sold. 2. Prepare consolidation entry 'G'. 3. Calculate net income attributable to noncontrolling interest. 4. Explain how net income attributable to noncontrolling interest would differ assuming the transfer is downstream. NO CALCULATION IS REQUIRED.