On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in cash. Theequipment had originally cost $162.000 but had a book value of only $99.000 when transferred. On that date, theequipment 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 Branniganreported $157.400. Ackerman attributed any excess acquisition-date fair value to Brannigan's unpatentedtechnology, which was amortized at a rate of $5,800 per yeara. 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 Branniganand the equipment transfer was upstream?What is the consolidated net income for 2022 f Ackerman reports $500.000 (does not Include InvestmentIncome) and Brannigan $169,200 in Income? Assume that Brannigan is a wholly owned subsidiary and theequipment transfer was downstream.Answer is not complete.AmauntsConsolidated net income for 2021600,800 OParent's share of consolidated net incomeParent's share of consolidated net incomeb.551.640 Od.Consolidated net income for 2022

A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…

On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in cash. 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

On January 1. 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $180,000 in cash. 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

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

100%

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 Investment
Income) and Brannigan $169,200 in Income? Assume that Brannigan is a wholly owned subsidiary and the
equipment transfer was downstream.
Answer is not complete.
Amaunts
Consolidated net income for 2021
600,800 O
Parent's share of consolidated net income
Parent's share of consolidated net income
b.
551.640 O
d.
Consolidated net income for 2022

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