On January 2, Year 4, Brady Ltd., a private company, purchased 80% of the outstanding shares of Partridge Ltd. for $6,020,000. Partridge's statement of financial position and the fair values of its identifiable assets and liabilities for that date were as follows:
Q: Clearview Window Company manufactures windows for the home-building industry. The window frames are…
A: The transfer price is the price at which the units are transferred from one department to another in…
Q: he Likert Company is a coal company based in West Virginia. The company recently purchased a new…
A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…
Q: Some of the information found on a detail inventory card for Sheffield Inc. for the first month of…
A: Better customer service, improved cash flow, simpler processes, higher profitability, less risks,…
Q: please answer within the format by providing formula the detailed working Please provide answer in…
A: Company that produces goods or services incurs various expenses. Expenses can be classified as…
Q: When a business has no tax liability, this means that it is: A) not filing income taxes regularly.…
A: Every business has to pay taxes like income tax, GST, state tax etc.There are certain rules and…
Q: Required information [The following information applies to the questions displayed below.) On…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Q: Sheridan Company received the following selected information from its pension plan trustee…
A: A defined benefit plan, more commonly known as a pension plan, where you know the amount of…
Q: On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained…
A: Spending money on an item with the intention of making money is referred to as investment. The…
Q: is exploring the possibility of expanding its products to include cream and/or ice cream. of ice…
A: Insights into the financial impact of a certain option or change are provided by incremental income,…
Q: Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a…
A: Manufacturing Cost:Manufacturing cost is the sum of expenses directly involved in manufacturing a…
Q: D Mac Trucking Ltd paid the premiums on the prperty and peril insurance policies for 13 months for…
A: The adjustment entries are prepared to adjust the revenue and expenses for the current period. The…
Q: Actual total overhead Standard overhead applied Budgeted (flexible) variable overhead rate Budgeted…
A: The variance is the difference between the actual and standard production data. The variance can be…
Q: Required information [The following information applies to the questions displayed below.] In 2021,…
A: Lets understand the basics.As per percentage of completion of method, revenue gets recognized over a…
Q: The QBO Sat Nav, which assists with navigating QuickBooks Online, contains which of the following…
A: Quickbooks is a accounting software which helps businesses to maintain their books of accounts…
Q: Through November, Cameron has received gross income of $123,000. For December, Cameron is…
A: Taxable Income: Any amount of gross income produced that is included into the calculation of the…
Q: Cassidy, Inc., reported the following sales and net income amounts: (Click on the icon to view the…
A: Trend percent analysis of income statements is one of the analysis of income statements in which…
Q: An overstatement of ending merchandise inventory in the current period results in an understatement…
A: COST OF GOODS SOLDCost of Goods Sold States that the Amount of Cost Included in the Number of Units…
Q: A method that estimates cost behavior by using just the highest and lowest volume levels is called…
A: The high-low method is used to differentiate the mixed costs. Mixed cost is the combination of fixed…
Q: Midyear on July 31st the digby corporation's balance sheet reported: TOtal liabilities of $128.513…
A: Accounting equation is the equation that shows the relationship between assets, liabilities and…
Q: Newhard Company assigns overhead cost to jobs on the basis of 110% of direct labor cost. The job…
A: Manufacturing Cost:Manufacturing cost means the cost taken to produce a product,…
Q: For the year ended December 31, 2025, Blossom Inc. reported the following Net income Preferred…
A: Lets understand the basics.Retained earnings are the unallocated profits available for distribution…
Q: Prepare a comparative income statement for the two-year period, presenting a vertical analysis of…
A: VERTICAL ANALYSIS OF FINANCIAL SHEETVertical analysis is a proportional analysis of financial…
Q: Journalist the transactions in the Account and Explanation . Journalist both normal transactions and…
A: Trial Balance is a statement that records all the assets, liabilities, stockholders' equity, revenue…
Q: Shown below is a segmented income statement for Mullett Marina's three main boating service lines:…
A: Relevant costs are those costs which can affect decisions to be taken. Relevant cost and benefit…
Q: s Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Klumper Corporation is a diversified manufacturer of industrial goods. The company's activity-based…
A: Under activity based costing method, the cost is allocated to each activity based on its…
Q: Determine the missing data.
A: A company's inventory on hand at the end of an accounting period is referred to as closing stock.…
Q: Dynamo Manufacturing paid cash to acquire the assets of an existing company. Among the assets…
A: ACCOUNTING EQUATIONAccounting Equation is a Financial Accounting Technique which represents the…
Q: Periodic Inventory Methods Tsikh Company reported the following current-year purchases and sales…
A: Weighted Average Method is one of the methods of inventory valuation in which it is assumed that…
Q: Jackson, an individual, is a shareholder in Cadduceus Corp., a C corporation with $40,000 in…
A: A capital gain, in simple terms, is the profit you make when you sell something like an investment…
Q: The Westfield branch of Security Home Bank submitted the following cost data for last year: Teller…
A: ACTIVITY BASED COSTINGActivity Based Costing is a Powerful tool for measuring performance.…
Q: 1-8. The following data were taken from the inventory records of Landmark Enterprises for January…
A: Perpetual Inventory:The perpetual inventory system is an accounting technique used to continuously…
Q: Question #1: The Fiberglass Boat Company reported the following costs and expenses in May 2021:…
A: Factory overhead is the indirect cost incurred in the process of manufacturing. Therefore, it is…
Q: On January 2, Year 1, Kean Co. purchased a 30% interest in Pod Co. for $250,000. On this date, Pod's…
A: The purchase of ownership shares in a firm, sometimes referred to as stock investment or equity…
Q: Burchard Company sold 42,000 units of its only product for $17.40 per unit this year. Manufacturing…
A: Net income is the amount of money earned by the entity after deducting all the expenses from the…
Q: AB Ltd.'s gross purchases were $19,600, net purchases account for an average 10% discount on all…
A: Net purchases are defined as the part of total purchases that remain with the company after allowing…
Q: Discuss generally how product and period costs should be recognized at interim dates. Also discuss…
A: Interim financial reporting involves preparing financial statements for shorter periods within the…
Q: Absorption and Variable Costing Income Statements: Production Exceeds Sales Glendale Company sells…
A: Lets understand the basics.There are generally two costing methods followed for preparation of…
Q: Required a. October sales are estimated to be $340,000, of which 40 percent will be cash and 60…
A: Budgeting is the process of estimating future operations based on past performance. % are estimated…
Q: Cost data for September WIP account: Beginning WIP cost O Material ● ● O Conversion Material added…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: Thermal Rising. Incorporated, makes paragliders for sale through specialty sporting goods stores.…
A: The customer margin is calculated as the difference between revenue earned and total costs incurred…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: The contribution margin is calculated as the difference between sales and variable costs. The net…
Q: Cash Short-term investments Current receivables Inventory Prepaid expenses Total current assets…
A: The ratio analysis helps to analyze the Financial statements of the business on the basis of various…
Q: need the last three requirement 3,4 and 5 please answer within the format by providing…
A: Direct material cost is the cost of raw material produced or purchased to produce the final…
Q: Flora's Gifts reported the following current-month data for its only product. The company uses a…
A: First in first out method is an inventory valuation method according to which the first purchases…
Q: Parker, Incorporated produces one model of mountain bike. Partial information for the company…
A: Under Variable Costing method, variable costs are shown separately to arrive at the value of…
Q: Regional Safety Supplies (RSS) designs and manufactures masks for students. After production, the…
A: Factory overhead cost is the cost incurred by the entity on the making of the goods. It is an…
Q: Comparative figures for Apple and Google follow. Apple Current Year One Year Prior $ 4,106 $ 3,956…
A: INVENTORY TURNOVER RATIOInventory turnover ratio is the ratio between cost of goods sold &…
Q: The cost of equipment purchased by Oriole, Inc., on June 1, 2025, is $90,300. It is estimated that…
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…
Q: what is the amount consolidated net income for the year 2023?
A: Add the individual net income of all subsidiaries to determine the consolidated net income. To get…
Step by step
Solved in 5 steps with 5 images
- The balance sheets of E Ltd. and J Ltd. on December 30, Year 6, were as follows: Cash and receivables Inventory Plant assets (net) Intangible assets Current liabilities Long-term debt Common shares Retained earnings (deficit) Costs of arranging the acquisition Costs of issuing shares. On December 31, Year 6, E Ltd. issued 497 shares, with a fair value of $26 each, for 70% of the outstanding shares of J Ltd. Costs involved in the acquisition, paid in cash, were as follows: Plant assets Long-term debt The carrying amounts of J Ltd.'s net assets were equal to fair values on this date except for the following: Assets Liabilities and Equity J Ltd. $ 20,900 9,700 71,900 7,400 $ 109,900 $ 64,400 $ 30,100 98,900 45,200 155,800 46,600 91,500 (12,000) $ 410,600 $ 109,900 Fair value $ 65,700 42,800 E Ltd. was identified as the acquirer in the combination. Required: (a) Prepare the consolidated balance sheet of E Ltd. on December 31, Year 6, under the identifiable net assets method. Assets E Ltd.…On 1 July 2021, James Ltd acquired all the issued shares of Dean Ltd for $350,000. At this date, the financial statements of Dean Ltd showed the following: $ Share capital 270,000 Retained earnings 26,500 General Reserve 8,800 Total equity 305,300 Goodwill 25,000 At acquisition date, all the net identifiable assets and liabilities in Dean Ltd were recorded at amounts equal to their fair value except for: Asset Carrying amount ($) Fair Value ($) Inventories 15,000 18,000 Plant (cost $400,000) 210,000 220,000 The Plant was calculated to have a further life of 5 years, and was depreciated on a straight-line basis. All inventory was sold by 30 June 2020. Assume 30% tax rate Required: Prepare the acquisition analysis at 1 July 2021. Prepare the consolidation entries at acquisition date, 1 July 2021. Include narrations for each entry. Prepare the consolidation worksheet as at 1 July 2021. Prepare a Balance sheet for the reporting Group, James Ltd as at 1 July 2021 in narrative format.On 1 July 2019, Brad Ltd acquired all assets and liabilities of Pitt Ltd. In exchange for these assets and liabilities, Brad Ltd issued 100,000 shares that at date of issue had a fair value of $5.20 per share. Costs of issuing these shares amounted to $1,000. Legal cost associated with the acquisition of Pitt Ltd amounted to $1,200.The assets and liabilities of Pitt Ltd at 1 July 2019 were as follows:Carrying Amount ($) Fair Value ($)AssetsCash 2,000 2,000Accounts receivable 10,000 10,000Inventory 64,000 68,000Equipment 320,000 232,000Accumulated depn - Equipment (96,000) -Patents 280,000 280,000LiabilitiesAccounts payable (16,000) (16,000)Debentures (64,000) (64,000)Required:a) Prepare the acquisition analysis at 1 July 2019 for the acquisition of Pitt Ltd by Brad Ltd.b) Prepare the journal entries in the records of Brad Ltd at 1 July 2019.
- North Ltd acquired $100,000 of shares in South Ltd for trading purposes on 1 January 20X3. Transaction costs of $2,000 were incurred. The fair value of the shares at 31 December 20X3 was $120, 500. Choose the account names and calculate the amount that correctly account for this investment on 31 December 20X3 (amount for the credit entry is not required).On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltdissued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of EldoradoLtd. The costs of issuing the shares by Quick Buck Ltd cost $1,600.At this date the statement of financial position of Eldorado Ltd was as follows: c Carrying amount Fair valueMachinery $40,000 $67,000Fixtures & fittings 60,000 68,000Vehicles 35,000 35,000 Current assets 10,000 12,000Current liabilities (16,000) (18,000)Total net assets…Swifty Company reported net income of $481000 for the year ended 12/31/25. Included in the computation of net income were the following: depreciation expense, $59400; amortization of a patent, $32000; income from an investment in the common stock of Blue Inc., accounted for under the equity method, $ 48400; and amortization of bond discount, $12000. Swifty also paid an $81000 dividend during the year. The net cash provided by operating activities would be reported at (a) $455000 (b) 423000 (c)342000 (d ) 536000
- Peace Company issued common shares with a par value of $58,000 and a market value of $165,300 in exchange for 30 percent ownership of Symbol Corporation on January 1, 20X2. Symbol reported the following balances on that date: Assets Cash Accounts Receivable Inventory (FIFO basis) Land Buildings & Equipment Less: Accumulated Depreciation Patent Total Assets Liabilities & Equities Accounts Payable SYMBOL CORPORATION Balance Sheet January 1, 20X2 Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities Book Value Fair Value $ 57,000 $ 57,000 97,000 97,000 133,000 163,000 55,000 70,000 505,000 326,000 (245,000) Investment income (loss) Balance in the investment account $ 602,000 $ 22,000 172,000 148,000 12,000 248,000 $ 602,000 32,000 $ 745,000 $ 22,000 172,000 The estimated economic life of the patents held by Symbol is 10 years. The buildings and equipment are expected to last 12 more years on average. Symbol paid dividends of $18,000 during…On January 1, 20X7, Phillips Corporation acquired 35 percent of the outstanding shares of Shell Corporation for $100,000 cash. Shell Company reported net income of $175,000 and paid dividends of $25,000 for both 20X7 and 20X8. The fair value of shares held by Phillips was $310,000 and $325,000 on December 31, 20X7 and 20X8 respectively.Based on the preceding information, what amount will be reported by Phillips as its basis in the Shell investment for 20X7, if it used the equity method of accounting? Group of answer choices $122,500 $161,250 $100,000 $152,500Johannes Inc. acquired 80 percent of Corner Brook Ltd. common shares on January 1, Year 4, for $744,000. At that date, the fair value of the non-controlling Interest was $186,000. Corner Brook's balance sheet contained the following amounts at the time of the combination: Cash Accounts Receivable Inventory Construction Work in Progress Other Assets (net) Total Assets 66,000 140,000 40,000 Accounts Payable $ 106,000 Bonds Payable 610,000 950,000 Common Shares ($10 par value) Retained Earnings 400,000 530,000 450,000 $1,646,000 $ 1,646,000 Total Liabilities & Equities During each of the next three years, Corner Brook reported net income of $120,000 and paid dividends of $60,000. On January 1, Year 6, Johannes sold 8,800 of the Corner Brook shares for $260,000 in cash. Johannes used the equity method in accounting for its ownership of Corner Brook. Required: (a) Compute the balance in the Investment account reported by Johannes on January 1, Year 6, before its sale of shares. (Omit $ sign…
- Blush Company has the ability to exercise significant when the fair value of net assets was P20,000,000. outstanding ordinary shares of an investee for P4,000,000 On July 1, 2020 Blush Company purchased 20% of the influence over the operating and financial policies of the investee. The following data concerning the investee are available: 12 months ended December 31, 2020 December 31, 2020 6 months ended Net income Dividend declared and paid 3,000,000 1,900,000 1,600,000 1,000,000 in the income statement for the year ended December 31, o020, what amount of income should be reported from the investment?1 On January 2, 2021, Normal Inc. acquired 15% interest in Laco Co. by paying P1,500,000 for 7,500 ordinary shares. On this date, the net assets of Laco Co. totaled P9 million. The investment was classified as a financial asset at fair value through other comprehensive income. The fair values of Laco Co.’s identifiable assets and liabilities approximate their book values. On August 1, 2021, Normal received dividends of P4 per share from Laco Co. Fair value of the stocks on December 31, 2021 was P190. Net income reported by Laco for the year ended amounted to P1,500,000. On July 1, 2022, Normal Inc. paid P1 million to purchase 5,000 additional shares of Laco Co. from another shareholder. On this date the fair value of the net assets exceeds carrying value by P500,000 attributable to depreciable asset with estimated remaining life of 5 years. On February 1, 2022, cash dividends of P5 were received while dividends of P6 were received on August 1, 2022. Net income reported for the year…