Compute for the consolidated net income. Separate income statements of Quail Corporation and its 80%-ownedsubsidiary, Savannah Corporation, for 2005 are as follows:QuailSavannahSales Revenue$$300,000800,00035,000Gain on equipmentGain on landCost of sales400,000)20,000160,000)60,000)265,000)Other expensesSeparate incomes$170,000100,000Additional information:1. Quail acquired its 80% interest in Savannah Corporation when thebook values were equal to the fair values.2. The gain on equipment relates to equipment with a book value of$85,000 and a 7-year remaining useful life that Quail sold toSavannah for $120,000 on January 2, 2005. The straight-linedepreciation method was used.3. In 2005, Savannah sold land to an outside entity for $80,000.The land was acquired from Quail in 2003 for $60,000. Theoriginal cost of the land to Quail was $35,000.(((

Calculation of Consolidated Net Income to be shown in Consolidated Financial Statements of Quail…

Answered: Compute for the consolidated net…

Business

Accounting

Compute for the consolidated net income.

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

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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