On January 1, 2020, Grand Haven, Inc., reports net assets of $843,200 although equipment (with a four-year remaining life) having a book value of $463,000 is worth $525,000 and an unrecorded patent is valued at $46,800. Van Buren Corporation pays $761,600 on that date to acquire an 80 percent equity ownership in Grand Haven. If the patent has a remaining life of nine years, at what amount should the patent be reported on Van Buren's consolidated balance sheet at December 31, 2021?   Multiple Choice

Q: On January 1, 2021, Weaver Corporation purchased a patent for $237,000. The remaining legal life is…

A: Intangible Assets:  Intangible assets are the long-term assets having no physical existence.…

Q: .  If the patent has a remaining life of nine years, at what amount should the patent be reported on…

A: Step 1 On consolidated balance sheet, patent is recorded at its fair value on acquisition date less…

Q: a. On January 1, 2024, UTS completed the purchase of Heinrich Corporation for $3,153,000 in cash.…

A: INTANGIBLE ASSETS  Intangible Assets are those Assets which are not Visible. In other Intangible…

Q: On January 1, 2024, Weaver Corporation purchased a patent for $237,000. The remaining legal life is…

A: Financial statement:The financial statement is the statement or the record that is prepared by the…

Q: Pina Colada Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $85,950. The…

A: The formula used to calculate the ammortization expense is as follows:

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: Loss on sale of equipment = Sale value - Net book value of equipment

Q: On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: 1. Date Account Titles and Explanation Debit Credit July 15, 2021 Cash $750,000…

Q: In January 2023. Domingo, Incorporated, acquired 20 percent of the outstanding common stock of…

A: The equity method is a technique in accountancy that a firm uses to recognize earnings out of its…

Q: On Jan. 1, 2022, you acquire Co. M for $ 34,200,000 when Co. M's book value was $ 5,400,000. M's…

A: Consolidation is the process of combining the assets, liabilities, and other financial components of…

Q: On July 1, 2019, Killearn Company acquired 124,000 of the outstanding shares of Shaun Company for…

A:

Q: The following information concerns the intangible assets of Baez Corporation: On June 30, 2024, Baez…

A: Journal entry is the first stage of accounting process.Journal entry used to record business…

Q: On January 1, 2022, Pride Corporation purchased 90 percent of the outstanding voting shares of Star,…

A: Consolidated net income:Net income is a business's income after taxes, deductions, and other…

Q: On January 1, 2020, Alison, Inc., paid $77,000 for a 40 percent interest in Holister Corporation’s…

A: Investment is the process of generating income in the near future by investing in an asset which is…

Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…

A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: On January 1, 2018, Pine Company owns 40 percent (40,000 shares) of Seacrest, Inc., which it…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: Pentamedia owns 90 percent of Sesa. At the start of 2019, Sesa sold buildings carried at $4,000,000,…

A: Calculate Depreciation: Since the buildings have a remaining life of 10 years and were sold at the…

Q: Kirson Holdings Ltd. purchased the net assets of Baker Ltd. in January 2020 for $6,082,000. Kirson…

A: Net assets=Assets-Liabilities

Q: On Jan. 1, 2022, you acquire Co. M for $ 31,200,000 when Co. M's book value was $ 6,040,000. M's…

A: The objective of the question is to determine the consolidated balances for the selected accounts at…

Q: On January 1, 2020, Alison, Inc., paid $83,800 for a 40 percent interest in Holister Corporation’s…

A: Solution Common stock can be defined as securities that represent individuals ownership in a said…

Q: On January 1, 2025, John Paul Jones Corp. purchased 30% of Sky Tech Inc. for $45 million. This…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,…

A: The question is based on the concept of financial accounting.

Q: On June 30, 2021, Epstein completed the acquisition of the Johnstone Corporation for $1,520,000 in…

A: Cost of goodwill = Acquisition costs - fair value of net identifiable costs = $1,520,000-1300000 =…

Q: Sheffield Corporation purchased a patent from MaFee Corp. on January 1, 2023, for $84,480. The…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: uisition-date fair value of $350,000. This intangible asset is being amortized over 20 years. Gibson…

A: The process of integrating the financial results of numerous subsidiary firms into the parent…

Q: On July 1, 2019, Killearn Company acquired 120,000 of the outstanding shares of Shaun Company for…

A:

Q: On January 1, 2020, French Company acquired 60 percent of K-Tech Company for $300,000 when K-Tech's…

A: Net Income = Revenue - Expenses 1) Net income of French Company = 900000 - 500000 = $ 400000 2) Net…

Q: the acquisition, the two companies have the following account balances. Clay’s equipment (with a…

A: Consolidated Statements: Consolidated statements are reports that can be utilized when the parent…

Q: The individual financial statements for Gibson Company and Keller Company for the year ending…

A: Consolidated Financial Statement - In these type of financial statements includes assets,…

Q: On January 1, 2024, Pine Company owns 40 percent (44,000 shares) of Seacrest, Incorporated, which it…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On January 1, 2018, Pine Company owns 40 percent (40,000 shares) of Seacrest, Inc., which it…

A: Equity method:   Common accounting technique used by the organization to get the access on profits…

Q: On January 1, 2021, Weaver Corporation purchased a patent for $231,000. The remaining legal life is…

A: Amortization expense = Cost of patent / Estimated useful life = $231,000 / 6 = $38,500 Amortization…

Q: On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On January 3, 2020, Gladstone Corporation purchased 30% of the outstanding voting common stock of…

A: In the equity method, we recognizes investment at cost.   In this method, the value of investment is…

Q: On January 1, 2023, Bertrand Incorporated paid $70,800 for a 40% interest in Chestnut Corporation's…

A: Income from an investment refers to the earnings or returns generated by holding an asset or…

Q: a. Consolidated net income b(1). Noncontrolling interest's share of the subsidiary's income b(2).…

A: Consolidation is a financial reporting method that integrates the financial statements of parent and…

Q: On July 1, 2019, Killearn Company acquired 105,000 of the outstanding shares of Shaun Company for…

A: When a corporation acquires another corporation, the accounting treatment of the invested capital or…

Q: On January 1, 2020, Hand acquires 40% ownership of Foot.  At the acquisition date, Foot had…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: Ayayai Corporation purchases a patent from Blossom Company on January 1, 2025, for $63,000. The…

A: As per IFRS / IAS 38 Intangible assets, An intangible assets is an non monetary asset which doesn't…

Q: On January 2, 2024, Cole Inc. paid $100,000 for a 30% interest in Johnas Corp. This investee had…

A: For investors, equity income is crucial, especially for those looking for income-producing assets.…

Q: In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,…

A: The equity method is a technique in accountancy that a firm uses to recognize earnings out of its…

Q: On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company…

A: Consolidated financial statements(CFS) are statements in which the financial statements of both the…

Q: The following information concerns the intangible assets of Epstein Corporation:a. On June 30, 2021,…

A: a. Goodwill = Acquisition cost - Fair value of net identifiable assets  = $2,000,000 - $1,700,000 =…

Q: On January 1, 2024, Pine Company owns 40 percent (124,000 shares) of Seacrest, Incorporated, which…

A: Equity method: Equity method is the method used for accounting equity investments which claim a…

Q: On July 1, 2019, Killearn Company acquired 110,000 of the outstanding shares of Shaun Company for…

A: Calculation of the equity income to be recognized by Killearn during each of these years:-…

Q: Quiz Company acquired a patent on July 1, Year 1. On the date of acquisition, the patent had a…

A: Patents is one of intangible asset being used in business. Intangible assets are those assets which…