On January 1, 2019, Palm Corporation acquired 70 percent of Smart Company's common stock for $210,000 cash, when the book value of Smart Company was $260,000. At the date of the business combination, the book values of Star's net assets and liabilities approximated fair value except for inventory, which had a book value of $140,000 and fair value of $145, 000, and equipment, which had a book value of $200,000 and a fair value of $220,000. During 2019 50% of the goodwill was impaired. What is the value of goodwill on December 31, 20192
Q: Lamothe Kitchen and Bath makes products for the home, which it sells through major retailers and…
A: Differential analysis is a managerial accounting decision-making technique used to assess the…
Q: Which of the
A: A prime cost is the total direct costs of production, including raw materials and labor.. Indirect…
Q: Scot and Vidia, married taxpayers, earn $240,000 in taxable income and $5,000 in interest from an…
A: The objective of this question is to calculate the marginal tax rate for Scot and Vidia, a married…
Q: Montoure Company uses a periodic inventory system. It entered into the following calendar-year…
A: Periodic inventory system is a system where cost of goods sold and inventory is not updated…
Q: The following selected transactions relate to contingencies of Classical Tool Makers, Incorporated,…
A: Contingencies are probable assets or liabilities that might arise due to events that occurred in the…
Q: You are the Accountant for a Custom Furniture company. The company uses a job order costing system…
A: The job order costing is the costing method which is used for determining the cost associated with…
Q: On January 1, 2024, Maywood Hydraulics leased drilling equipment from Aqua Leasing for a four-year…
A: Journal entries - Lessee (Maywood Hydraulics)DateGeneral JournalDebitCreditJan 1, 2024Right of use…
Q: A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue…
A: Net operating income refers to the measurement of the profit earned from the business by subtracting…
Q: Jamie, the owner of 'Jamie's Port a Potty' leases 10 used portable bathrooms from Royal Restrooms.…
A: Variable Expense: It refers to an expense that changes or varies with a change in the production…
Q: Hogg Company purchased a machine from Chump Corporation on October 31, 2020. In payment for the…
A: The promissory note is a written promise made by the borrower to repay the debts on a specific date…
Q: Build a Bridge Inc. prepares its financial statements in accordance with IFRS. The company started…
A: The percentage of completion approach is used to recognise income and expenses related to long-term…
Q: Altira Corporation provides the following information related to its inventory during the month of…
A: Ending inventory is the amount of inventory that an entity has on hand, at the end of the period. It…
Q: On April 1, 2024, Titan Ca classifies the equipment
A: Straight line depreciation is the standard method for recognizing the carrying amount of a fixed…
Q: 9
A: Least squares method of regression is the tool, which is used through accountants in estimating the…
Q: Johnson Company operates two factories, Plant A and Plant B. Johnson Company reported for the year…
A: Contribution Margin is calculated with the help of following formula Contribution Margin = Sales*…
Q: Required: How do Dominique and Terrell report these items for tax purposes?
A: A reporting schedule outlines the timeline and structure for the submission of financial or…
Q: Compute the depreciation expense for the year ended December 31, 2026. Splish elected to depreciate…
A: Depreciation is a non-cash expense.Depreciation is charged on fixed asset over a estimated useful…
Q: CircuitTown commenced a gift card program in January 2024 and sold $12,900 of gift cards in January,…
A: Deferred revenue refers to the revenue that has not been earned to date. In other words, deferred…
Q: ash Flows from (Used for) Operating Activities he income statement disclosed the following items for…
A: Cash flow from operating activity includes transactions related to cash inflow and outflow of the…
Q: You have decided to go into the business of selling Beamers. You decide to operate the business as a…
A: A journal is a concise record of all transactions a business conducts,;a concise record of all…
Q: By the end of December, Green Company has completed work, earning $4,500. Green company has neither…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: How many units must be in ending inventory if beginning inventory was 15,000 units, 55,000 units…
A: Units completed and transferred out is the difference between total units to account for and units…
Q: Ple'egrea Pte Ltd. sells books in Madagascar. They have supplied the following data: • Units sold:…
A: Contribution Margin : Contribution margin is a measure of the amount of revenue left over after…
Q: Below are the account balances for Cowboy Law Firm at the end of December. Accounts Cash Salaries…
A: Income statement is the financial statement which is prepared by the entity for the purpose of…
Q: Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and…
A: When a company undergoes liquidation, unsecured creditors are typically paid after secured creditors…
Q: Christine Erickson is the payroll accountant for Multi Winds Energy of Lincoln, Nebraska. The…
A: Here we discuss the details of the payment of net pay which is incurred to the employees after…
Q: Problem 10-53 (LO 10-2, LO 10-3) (Algo) [The following information applies to the questions…
A: Over time, wear and use, damage, and obsolescence cause an asset's value to decrease. The unit of…
Q: Selected financial data regarding current assets and current liabilities for Queen's Line, a…
A: Current ratio is the ratio between total current assets to total current liabilities. It is…
Q: 17. Graniel Couture has $260,000 of 8% noncumulative, preferred stock outstanding. Graniel Couture…
A: Dividend per share is calculated for Preferred stock as well as Common Stock. Dividend per share is…
Q: 17. Graniel Couture has $260,000 of 8% noncumulative, preferred stock outstanding. Graniel Couture…
A: Dividend per share is calculated for Preferred stock as well as Common Stock. Dividend per share is…
Q: M&R Company provided $3,000 in services to customers in December. Those customers are expected to…
A: Journal entry are passed in order to record an accounting transaction. In this question, we need to…
Q: Kunkel Company makes two products and uses a conventional costing system in which a single plantwide…
A: Activity-Based Costing (ABC) is a costing method used by businesses to allocate indirect costs to…
Q: a. Based on the information provided, determine the amount of net income. b. Based on the…
A: The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…
Q: In the province of Ontario and for HST/GST purposes, if you sell exempt rated services, you cannot…
A: Exempt-rated supplies do not attract HST; Where as Zero-rated supplies, on the other hand, are…
Q: The following account balances are available from the ledger of Yutao Shui Corporation on December…
A: Financial reorganization involves restructuring a company's financial framework to address issues…
Q: Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments…
A: Variable cost is a cost which varies with units of production while a fixed cost is a cost which…
Q: the following data 1or this year Sales Direct labor cost Raw material purchases. Selling expenses…
A: The cost of goods manufactured includes the cost of goods that are finished during the period. The…
Q: Headland Corp. is a medium-sized corporation specializing in quarrying stone for building…
A: Fair Value: When a buyer and seller voluntarily agree on a price, the projected price that will be…
Q: Poles Corporation uses the following activity rates from its activity-based costing to assign…
A: The objective of the question is to calculate the overhead cost assigned to each of the two products…
Q: Wildhorse Company began operations in 2025 and determined its ending inventory at cost and at LCNRV…
A: Introduction:The cost of goods sold is the cost of producing the commodities sold by a firm. In…
Q: During February, Alexander Inc. worked on two jobs with the following data:…
A: A cost accounting technique called job costing is used to keep track of the expenses related to a…
Q: Laker Incorporated's fiscal year-end is December 31, 2024. The following is an adjusted trial…
A: When an accounting period comes to a conclusion, journal entries known as closing entries are made…
Q: TB MC Qu. 8-61 The following are budgeted... The following are budgeted data: Sales in units…
A: Direct material purchase budget:- This budget is prepared to estimate the number of units and cost…
Q: A company has a beginning inventory of $40,000 and purchases during the year of $110,000. The…
A: INVENTORY VALUATIONInventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Greenwood Company manufactures two products-15,000 units of Product Y and 7,000 units of Product Z.…
A: Activity rate is used under activity activity-based costing system to determine the amount of…
Q: Required Information [The following information applies to the questions displayed below] Reba Dixon…
A: a) Reba would be allowed to file the income tax return as "head of household". As per IRS, only…
Q: A business operated at 100% of capacity during its first month and incurred the following costs:…
A: As per the absorption costing method, the product cost includes fixed and variable manufacturing…
Q: Return on Equity Evans & Sons, Inc., disclosed the following information in a recent annual report:…
A: Return on equity (ROE) gauges a company's profitability in relation to the equity held by its…
Q: On December 31, 2023, Ivanhoe Company reported the following information in its financial…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: A citizen group raised funds to establish an endowment for the Eastville City Library. Under the…
A: The performance report is an essential instrument for evaluating the sustainability and financial…
Step by step
Solved in 3 steps
- Below are Lebnas Corp.’s 2019 income statement and comparative balance sheet at 12/31/2019 and 12/31/2018. Additional information: On December 31, 2018, Lebnas acquired 25% of Island ’s common stock for $609,000. On that date, the carrying value of Island’s assets and liabilities, which approximated their fair values, was $2,435,000. Island reported income of $319,000 for the year ended December 31, 2019. No dividend income was received by Lebnas on Island’s common stock during the year 2019. During 2018, Lebnas loaned $797,500 to POI , an unrelated company. POI made the first semi-annual principal repayment of $72,500, plus interest at 10%, on December 31, 2018. POI is current on the loan as of December 31, 2019. On January 2, 2019, Lebnas sold equipment costing $145,000, with a carrying amount of $44,950 for cash. On December 31, 2019, Lebnas entered into a finance lease for a new The present value of the annual rental…On January 1, 2019, Post Corporation acquired 80 percent of Star Company's common stock for $160,000 cash, when the book value of Star Company was $160,000. At the date of the business combination, the book values of Star's net assets and liabilities approximated fair value except for inventory, which had a book value of $40.000 and fair value of $45,000, and equipment, which had a book value of $100,000 and a fair value of $120,000. Additional information: * Star Company uses the FIFO method and all inventory acquired on January 1, 2019 were sold during 2019. * Equipment has a remaining useful life of 10 years, and the straight-line method is used. * Star reported net income of $60.000 and $75,000 for 2019 and 2020 respectively. * Star Company declared and paid dividends of $30.000 in 2019 and $40,000 in 2020. What is the balance of Investment in Star Company on December 31, 2020? Select one: O a. $160.000 O b. $212.000 C. $208.000 Od. $204,800On January 1, 2019, Post Corporation acquired 80 percent of Star Company's common stock for $160,000 cash, when the book value of Star Company was $160,000. At the date of the business combination, the book values of Star's net assets and liabilities approximated fair value except for inventory, which had a book value of $40,000 and fair value of $45,000, and equipment, which had a book value of $100,000 and a fair value of $120,000. Additional information: * Star Company uses the FIFO method and all inventory acquired on January 1, 2019 were sold during 2019. Equipment has a remaining useful life of 10 years, and the straight-line method is used. * Star reported net income of $60,000 and $75,000 for 2019 and 2020 respectively. * Star Company declared and paid dividends of $30,000 in 2019 and $40,000 in 2020. What is the balance of Noncontrolling interest in Net Assets on December 31, 2020? Select one: a. $52,200 b. $53,000 c. $51,200 d. $40,000
- On January 1, 2019, Post Corporation acquired 80 percent of Star Company's common stock for $160,000 cash, when the book value of Star Company was $160,000. At the date of the business combination, the book values of Star's net assets and liabilities approximated fair value except for inventory, which had a book value of $40,000 and fair value of $45,000, and equipment, which had a book value of $100,000 and a fair value of $120,000. Additional information: * Star Company uses the FIFO method and all inventory acquired on January 1, 2019 were sold during 2019. * Equipment has a remaining useful life of 10 years, and the straight-line method is used. * Star reported net income of $60,000 and $75,000 for 2019 and 2020 respectively. * Star Company declared and paid dividends of $30,000 in 2019 and $40,000 in 2020. What is the balance of Investment in Star Company on December 31, 2020? Select one: a. $204,800 b. $212,000 c. $160,000 d. $208,000 solve it as soon as possible pleaseeeeeOn January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. Theconsideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shareswith a market price of P45 per share.The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for thefollowing:• Merchandise inventory’s fair value is lower than the book balance by 150,000.• Equipment-A, with 2 years remaining useful life, costing P300,000 is understated byP50,000.• Land with a fair value of P500,000 is recognized in the books amounting to P350,000.The following events happened to Luna Corp.• Equipment-A was sold in June 30, 2023 for P320,000.• 60% of merchandise inventory were sold in 2022.• There is no movement as to the ordinary shares of Luna Corp during the year.The unadjusted trial balance as of December 31, 2022 were as follows:Lucas Company Luna CorpCash 2,240,000 1,800,000Trade Receivables 1,000,000 960,000Merchandise Inventory 2,320,000…On January 1, 2022, Lucas Company acquired 85% of outstanding shares of Luna Corp. Theconsideration transferred includes cash payment of P2,000,000 and issuance of 50,000 shareswith a market price of P45 per share.The book value of Luna Corp.’s identifiable net assets approximate its fair value, except for thefollowing:• Merchandise inventory’s fair value is lower than the book balance by 150,000.• Equipment-A, with 2 years remaining useful life, costing P300,000 is understated byP50,000.• Land with a fair value of P500,000 is recognized in the books amounting to P350,000.The following events happened to Luna Corp.• Equipment-A was sold in June 30, 2023 for P320,000.• 60% of merchandise inventory were sold in 2022.• There is no movement as to the ordinary shares of Luna Corp during the year.The unadjusted trial balance as of December 31, 2022 were as follows:Lucas Company Luna CorpCash 2,240,000 1,800,000Trade Receivables 1,000,000 960,000Merchandise Inventory 2,320,000…
- On January 1, 2020, Merlo Company acquired 80% of the stocks of Fritzie Company for P2,000,000. On this date, Fritzie Company had P1,000,000 of Capital Stock and P800,000 of Retained Earnings. On this date, the carrying values of the identifiable assets and liabilities of Fritzie Company are equal to their fair values.During the year, Merlo Company ships merchandise to Fritzie Company merchandise amounting to P800,000, which includes 25% gross profit rate. At the end of the year, records show the following: Merlo Company Fritzie CompanyInventories, Jan 1. P350,000 P120,000Inventories, Dec. 31 400,000 200,000Sales 5,500,000 2,500,000Cost of Sales 3,200,000 1,600,000Operating expenses 650,000 300,000Dividends paid 500,000 350,000The ending…On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $218,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $349,000. During 2021, Burks reported net income of $76,000 and declared and paid cash dividends of $25,000. Alamar sold inventory costing $25,000 to Burks during 2021 for $36,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the acquisition of a 36 percent interest in Burks. 1b. Record the 36 percent income earned by Alamar from this investment. 1c. Record the investee dividend declaration. 1d. Record the collection of dividend from investee.On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $353,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $27,000 to Burks during 2021 for $35,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment 2. Record the 36 percent income earned by Alamar from this investment.
- On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $353,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $27,000 to Burks during 2021 for $35,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment. 3. Record the investee dividend declaration.On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $353,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $27,000 to Burks during 2021 for $35,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment. 4. Record the collection of dividend from investee.On January 1, 2021, Alamar Corporation acquired a 36 percent interest in Burks, Inc., for $198,000. On that date, Burks’s balance sheet disclosed net assets with both a fair and book value of $353,000. During 2021, Burks reported net income of $84,000 and declared and paid cash dividends of $24,000. Alamar sold inventory costing $27,000 to Burks during 2021 for $35,000. Burks used all of this merchandise in its operations during 2021. Prepare all of Alamar’s 2021 journal entries to apply the equity method to this investment 1. Record the acquisition of a 36 percent interest in Burks