just need the answer PLZ Determining ending consolidated balances in the second year following the acquisition—Cost method Assume a parent company acquired a subsidiary on January 1, 2015, for $2,086,000. The purchase price was $966,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $502,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows: Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales $8,318,750 $1,890,000 Assets Cost of goods sold (5,989,500) (1,089,000) Cash $1,567,280 $468,600 Gross profit 2,329,250 801,000 Accounts receivable 2,462,900 421,300 Equity income 37,400 - Inventory 3,376,850 540,650 Operating expenses (1,247,840) (546,900) Equity investment 2,086,000 - Net income $1,118,810 $254,100 Property, plant & equipment 17,189,920 1,000,450 Statement of retained earnings $26,682,950 $2,431,000 BOY retained earnings 5,801,070 937,750 Liabilities and stockholders' equity Net income 1,118,810 254,100 Accounts payable $1,217,920 $173,030 Dividends (262,570) (37,400) Accrued liabilities 1,447,270 226,270 Ending retained earnings $6,657,310 $1,154,450 Long-term liabilities 10,587,500 605,000 Common stock 925,060 121,000 APIC 5,847,890 151,250 Retained earnings 6,657,310 1,154,450 $26,682,950 $2,431,000 At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answers. a. Sales Answer b. Investment income Answer c. Operating expenses Answer d. Inventories Answer e. Equity investment Answer f. Property, plant & equipment, net Answer

just need the answer PLZ Determining ending consolidated balances in the second year following the acquisition—Cost method Assume a parent company acquired a subsidiary on January 1, 2015, for $2,086,000. The purchase price was $966,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $502,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows: Parent Subsidiary Parent Subsidiary Income statement Balance sheet Sales $8,318,750 $1,890,000 Assets Cost of goods sold (5,989,500) (1,089,000) Cash $1,567,280 $468,600 Gross profit 2,329,250 801,000 Accounts receivable 2,462,900 421,300 Equity income 37,400 - Inventory 3,376,850 540,650 Operating expenses (1,247,840) (546,900) Equity investment 2,086,000 - Net income $1,118,810 $254,100 Property, plant & equipment 17,189,920 1,000,450 Statement of retained earnings $26,682,950 $2,431,000 BOY retained earnings 5,801,070 937,750 Liabilities and stockholders' equity Net income 1,118,810 254,100 Accounts payable $1,217,920 $173,030 Dividends (262,570) (37,400) Accrued liabilities 1,447,270 226,270 Ending retained earnings $6,657,310 $1,154,450 Long-term liabilities 10,587,500 605,000 Common stock 925,060 121,000 APIC 5,847,890 151,250 Retained earnings 6,657,310 1,154,450 $26,682,950 $2,431,000 At what amount will the following accounts appear on the consolidated financial statements? Do not use negative signs with any of your answers. a. Sales Answer b. Investment income Answer c. Operating expenses Answer d. Inventories Answer e. Equity investment Answer f. Property, plant & equipment, net Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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i just need the answer PLZ

Determining ending consolidated balances in the second year following the acquisition—Cost method

Assume a parent company acquired a subsidiary on January 1, 2015, for $2,086,000. The purchase price was $966,200 in excess of the subsidiary’s $1,119,800 book value of Stockholders’ Equity on the acquisition date. Of this excess purchase price, $502,000 was assigned to Property, plant and equipment with a remaining economic useful life of 10 years, and $464,200 was assigned to Goodwill. On the acquisition date, the subsidiary reported retained earnings equal to $847,550. The parent uses the cost method of pre-consolidation Equity investment bookkeeping. The financial statements of the parent and its subsidiary for the year ended December 31, 2016, are as follows:

	Parent	Subsidiary		Parent	Subsidiary
Income statement			Balance sheet
Sales	$8,318,750	$1,890,000	Assets
Cost of goods sold	(5,989,500)	(1,089,000)	Cash	$1,567,280	$468,600
Gross profit	2,329,250	801,000	Accounts receivable	2,462,900	421,300
Equity income	37,400	-	Inventory	3,376,850	540,650
Operating expenses	(1,247,840)	(546,900)	Equity investment	2,086,000	-
Net income	$1,118,810	$254,100	Property, plant & equipment	17,189,920	1,000,450
Statement of retained earnings				$26,682,950	$2,431,000
BOY retained earnings	5,801,070	937,750	Liabilities and stockholders' equity
Net income	1,118,810	254,100	Accounts payable	$1,217,920	$173,030
Dividends	(262,570)	(37,400)	Accrued liabilities	1,447,270	226,270
Ending retained earnings	$6,657,310	$1,154,450	Long-term liabilities	10,587,500	605,000
			Common stock	925,060	121,000
			APIC	5,847,890	151,250
			Retained earnings	6,657,310	1,154,450
				$26,682,950	$2,431,000

At what amount will the following accounts appear on the consolidated financial statements?

Do not use negative signs with any of your answers.

a.	Sales	Answer
b.	Investment income	Answer
c.	Operating expenses	Answer
d.	Inventories	Answer
e.	Equity investment	Answer
f.	Property, plant & equipment, net	Answer
g.	Goodwill	Answer
h.	Common stock	Answer
i.	Retained earnings	Answer

plzz answer part D,E AND F

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