Answer? ? Financial accounting On January 1, 2015, Ackerman sold equipment to Brannigan (awholly owned subsidiary) for $150,000 in cash. The equipmenthad originally cost $130,000 but had a book value of only $85,000when transferred. On that date, the equipment had a five-yearremaining life. Depreciation expense is computed using thestraight-line method. Ackerman earned $250,000 in net incomein 2015 (not including any investment income) while Branniganreported $93,000. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which wasamortized at a rate of $6,000 per year. What is the consolidatednet income for 2015?

Step 1: Define Consolidated Net Income (CNI)The consolidated income statement for periods following…

Answered: On January 1, 2015, Ackerman sold…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

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On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $120,000 in cash. The equipment had originally cost $108,000 but had a book value of only $66,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $540,000 in net income in 2018 (not including any investment income) while Brannigan reported $177,200. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $6,400 per year. What is consolidated net income for 2018? What is the parent's share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan? What is the parent's share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? What is the consolidated net income for 2019 if Ackerman reports $560,000 (does not include…
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