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

See similar textbooks

Similar questions

On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
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…
On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method.Ackerman reported $300,000 in net income in 2018 (not including any investment income) while Brannigan reported $98,000. Ackerman attributed any excess acquisition-date fair value to Brannigan’s unpatented technology, which was amortized at a rate of $4,000 per year.a. What is consolidated net income for 2018?b. What is the parent’s share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan?c. 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?d. What is the consolidated net income for 2019 if Ackerman reports $320,000 (does not include…
On January 1, 2018, Ashton Corp. sold equipment to Bennett Ltd. (a wholly owned subsidiary) for $180,000 in cash. The equipment had originally cost $150,000 but had a book value of only $95,000 when transferred. On that date, the equipment had a four-year remaining life. Depreciation expense is computed using the straight-line method. Ashton earned $275,000 in net income in 2018 (not including any investment income), while Bennett reported $105,000. Ashton attributed any excess acquisition-date fair value to Bennett’s patented technology, which was amortized at a rate of $8,000 per year. What is the consolidated net income for 2018? Help me with this
On January 1, 2018, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $150,000 in cash. The equipment had originally cost $135,000 but had a book value of only $82,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $510,000 in net income in 2018 (not including any investment income) while Brannigan reported $167,300. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $6,100 per year. a. What is consolidated net income for 2018? b. What is the parent's share of consolidated net income for 2018 if Ackerman owns only 90 percent of Brannigan? c. 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? d. What is the consolidated net income for 2019 if Ackerman reports $530,000 (does not…
On January 1, 2016, Margo Company acquired machinery at a cost of $160,000. This machinery was being depreciated by the double-declining-balance method over an estimated life of five years with no salvage value. At the beginning of 2018, Margo changed to and could justify straight-line depreciation. Margo's tax rate is 30 percent. What is the amount of depreciation expense to be included in 2018 net income?
Axel Ltd. owns equipment that it had purchased on January 1, 2014 for $1,500,000 cash. Axel applies the revaluation model to account for its assets and re-values them every two years. Axel uses the diminishing balance method to depreciate this type of asset. The equipment has a 16-year useful life with no residual value. The asset's fair values were as follows: December 31, 2015 $1,400,000 December 31, 2017 $1,200,000 December 31, 2019 $1,000,000 On January 1, 2016 Axel replaced the motor with a newer and more efficient motor that added an additional 6 years to the useful life of the equipment and at this time Axel changed the depreciation method to straight line. There was no change to the residual value of the equipment. Required: (round all dollars amounts to the nearest whole dollar, and round the diminishing balance rate to four decimal places) Prepare all required journal entries for annual depreciation and revaluation for 2014 to 2019. Note: Dates are required…
On July 15, 2018, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000and $325,000, respectively. The book value of the patent and equipment on the date of sale were $120,000 and$400,000 (cost of $550,000 less accumulated depreciation of $150,000), respectively. Prepare the journal entriesto record the sales of the patent and equipment.
On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in cash. The equipment had originally cost $162.000 but had a book value of only $99.000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $480,000 in net income in 2021 (not including any investment income) while Brannigan reported $157.400. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $5,800 per year a. What is consolidated net income for 2021? What is the parent's share of consolidated net income for 2021 If Ackerman owns only 90 percent of Brannigan? c. yhat is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? What is the consolidated net income for 2022 f Ackerman reports $500.000 (does not Include…
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $310,000 in cash. The equipment had originally cost $279,000 but had a book value of only $170,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $410,000 in net income in 2021 (not including any investment income) while Brannigan reported $134,300. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $5,100 per year. a. What is consolidated net income for 2021? b. What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan? c. What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? d. What is the consolidated net income for 2022 if Ackerman reports $430,000 (does not…
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $110,000 in cash. The equipment had originally cost $99,000 but had a book value of only $60,500 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method. Ackerman reported $550,000 in net income in 2021 (not including any investment income) while Brannigan reported $180,500. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatented technology, which was amortized at a rate of $6,500 per year. What is consolidated net income for 2021? What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan? What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? What is the consolidated net income for 2022 if Ackerman reports $570,000 (does not include…
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight - line method. Ackerman reported $300,000 in net income in 2021 (not including any investment income) while Brannigan reported $98, 000. Ackerman attributed any excess acquisition - date fair value to Brannigan's unpatented technology, which was amortized at a rate of $4,000 per year. What is consolidated net income for 2021? What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan? What is the parent's share of consolidated net income for 2021 if Ackerman owns only 90 percent of Brannigan and the equipment transfer was upstream? What is the consolidated net income for 2022 if Ackerman reports $320,000 (does not include…

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

Principles of Accounting Volume 1

Accounting

ISBN:

9781947172685

Author:

OpenStax

Publisher:

OpenStax College

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS