Please help me On January 1, 2017, Chintan Corp., a 75% owned subsidiary of VictorInc., transferred equipment with a 10-year useful life to Victor Inc. inexchange for $95,000 cash. At the date of transfer, Chintan's recordscarried the equipment at a cost of $140,000 with accumulateddepreciation of $60,000. Straight-line depreciation is used.Chintan reported net income of $50,000 and $42,000 for 2017 and2018, respectively. All net income effects of the intra-entity transferare attributed to the seller for consolidation purposes.Compute the gain recognized by Chintan Corp. relating to theequipment for 2017.

Concept of Book Value:The book value of an asset represents its net value on the balance sheet,…

Answered: On January 1, 2017, Chintan Corp., a…

Principles of Accounting Volume 1

19th Edition

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.
On January 1, 2017, Chintan Corp., a 75% owned subsidiary of Victor Inc., transferred equipment with a 10-year useful life to Victor Inc. in exchange for $95,000 cash. At the date of transfer, Chintan’s records carried the equipment at a cost of $140,000 with accumulated depreciation of $60,000. Straight-line depreciation is used. Chintan reported net income of $50,000 and $42,000 for 2017 and 2018, respectively. All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes. Compute the gain recognized by Chintan Corp. relating to the equipment for 2017.help
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, 2022, Kenya Company, an 80% owned subsidiary of Oliver, Inc., transferred equipment with a 10-year life (six of which remain with no salvage value) to Oliver in exchange for $78,000 cash. At the date of transfer, Kenya's records carried the equipment at a cost of $100,000 less accumulated depreciation of $40,000. Straight-line depreciation is used. Kenya reported net income of $48,000 for 2022. In preparing financial statements for 2022, how does this transfer affect the computation of consolidated net income?
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, 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, 2023, Smeder Company, an 80% owned subsidiary of Collins, Incorporated, transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder’s records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 and $32,000 for 2023 and 2024, respectively. All net income effects of the intra-entity transfer are attributed to the seller for consolidation purposes. Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what amount of this gain should be recognized for consolidation purposes for 2023? Multiple Choice $1,200 $12,000 $9,600 $8,400 $2,000
On January 1, 2020, Smeder Company, an 80% owned subsidiary of Collins, Inc., transferred equipment with a 10-year life (six of which remain with no salvage value) to Collins in exchange for $84,000 cash. At the date of transfer, Smeder's records carried the equipment at a cost of $120,000 less accumulated depreciation of $48,000. Straight-line depreciation is used. Smeder reported net income of $28,000 and $32,000 for 2020 and 2021, respectively. All net income effects of the intra- entity transfer are attributed to the seller for consolidation purposes. What amount of gain should be reported by Smeder Company relating to the equipment for 2020 prior to making consolidating entries? Multiple Choice $36,000. $34,000. $12,000. $10,000.
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
At the beginning of 2016, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition tocash, receivables, and inventory, the following assets and their fair values were also acquired:Plant and equipment (depreciable assets) $150 millionPatent 40 millionGoodwill 100 millionThe plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortizedusing the straight-line method.At the end of 2018, a change in business climate indicated to management that the assets of Ellison might beimpaired. The following amounts have been determined:Plant and equipment:Undiscounted sum of future cash flows $ 80 millionFair value 60 millionPatent:Undiscounted sum of future cash flows $ 20 millionFair value 13 millionGoodwill:Fair value of Ellison Technology Corporation $450 millionFair value of Ellison’s net assets (excluding goodwill)…
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.
Dengar

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