The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibsonacquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $750,000. At theacquisition date, the fair value of the noncontrolling interest was $500,000 and Keller's book value was $1,000,000. Keller haddeveloped internally a customer list that was not recorded on its books but had an acquisition-date fair value of $250,000. Thisintangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller.Gibson sold Keller land with a book value of $75,000 on January 2, 2020, for $160,000. Keller still holds this land at the end of thecurrent year.Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $180,000 to Gibson at a price of $300,000. During2021, intra-entity shipments totaled $350,000, although the original cost to Keller was only $245,000. In each of these years, 20percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $35,000 at theend of 2021.SalesCost of goods soldOperating expensesEquity in earnings of Keller.Net incomeRetained earnings, 1/1/21Net income (above)Dividends declaredRetained earnings, 12/31/21CashAccounts receivableInventoryInvestment in Keller.LandBuildings and equipment (net)Total assetsLiabilitiesCommon stockAdditional paid-in capitalRetained earnings, 12/31/21Total liabilities and equities(Note: Parentheses indicate credit balance.)GibsonCompany$ (950,000) $650,000140,000(102,000)$ (262,000)$(1,266,000) $(262,000)145,000$(1,383,000)$ 184,000386,000540,000966,000120,000511,000$ 2,707,000$$$(1,383,000)$(2,707,000)KellerCompany(584,000) $(740,000)0(650,000)450,00030,0000(170,000)(695,000)(170,000)45,000(820,000)60,000560,000470,0000540,000450,000$ 2,080,000(720,000)(470,000)(70,000)(820,000)$(2,080,000) How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a$135,000 book value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that thebuilding had a 10-year remaining life at the date of transfer. (Do not round intermediate calculations. If no entry is requiredfor a transaction/event, select "No journal entry required" in the first account field.)Show lessNo12Transaction12Retained earningsBuildingsAccumulated depreciationAccumulated depreciationOperating expensesAccountsDebit138,30040,00011,000Credit153,90011,000

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

ould the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a 00 book value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the had a 10-year remaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required ansaction/event, select "No journal entry required" in the first account field.) Transaction 1 2 Retained earnings Buildings Accumulated depreciation Accumulated depreciation Operating expenses Accounts Debit 138,300 X 40,000 11,000 Credit 153,900 11,000 Show less

ould the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a 00 book value (cost of $290,000) to Keller for $250,000 instead of land, as the problem reports? Assume that the had a 10-year remaining life at the date of transfer. (Do not round intermediate calculations. If no entry is required ansaction/event, select "No journal entry required" in the first account field.) Transaction 1 2 Retained earnings Buildings Accumulated depreciation Accumulated depreciation Operating expenses Accounts Debit 138,300 X 40,000 11,000 Credit 153,900 11,000 Show less

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following relates to consolidation eliminating entries for 2020. Eliminating entry (R): Select one: A. Debits plant assets, net $5,000 B. Debits intangibles $8,000 C. Debits intangibles $9,000 D. Credits plant assets, net $4,000
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Please Explain Proper Step by Step and Do Not Give Solution In Image Format And Fast Answering Please & Thanks In Advance
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Exercise 8-19 (Algorithmic) (LO. 2) Euclid acquires a 7-year class asset on May 9, 2022, for $153,000 (the only asset acquired during the year). Euclid does not elect Immediate expensing under § 179. He does not claim any available additional first-year depreciation. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. Calculate Euclid's cost recovery deduction for 2022 and 2023. 2022: S 2023: S
in Reynolds buys building (10 year useful life) on January 1, 2019 for $1,000,000. Straight line depreciation is used. On the same day, Reynolds sells building to 90% owned subsidiary for $1,200,000. Subsidiary also uses a remaining useful life of 10 years. What is the appropriate worksheet entry for "excess depreciation" that must be prepared at December 31, 2019? shift O Dr. Depreciation Expense $120,000. Cr. Accumulated Depreciation $120,000 O Dr. Depreciation Expense $20,000. Cr. Accumulated Depreciation $20,000 tab O Dr. Accumulated Depreciation $20,000 Cr. Depreciation Expense $20,000 caps lock O Dr. Accumulated Depreciation $120,000. Cr. Depreciation Expense $120,000 esc 1 9,680 ! 1 Q A T control option Z 72 W S OCT 25 #3 X H command 80 F3 E D $ 4 с 160 000 000 F4 R tv F 175⁰ % F5 V T G
Required information Comprehensive Problem 02-76 (LO 02-1, LO 02-2, LO 02-3, LO 02-4, LO 02-5) (Algo) [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2020. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2020: Date Placed in Service 02/03/2020 07/22/2020 Asset Сost $ 180, 000 Office furniture Machinery Used delivery truck* *Not considered a luxury automobile. 1, 566, 000 46, 000 08/17/2020 During 2020, Karane was very successful (and had no $179 limitations) and decided to acquire more assets in 2021 to increase its production capacity. These are the assets acquired during 2021: Date Placed in Service Cost $ 406, 000 Asset Computers and information system Luxury autot Assembly equipment Storage building 03/31/2021 05/26/2021 08/15/2021 81, 500 1, 230, 000 700, 000 11/13/2021 tUsed 100%…
Exercise 8-23 (Algorithmic) (LO. 2, 3) Diana acquires, for $171,200, and places in service a 5-year class asset on December 19, 2023. It is the only asset that Diana acquires during 2023. Diana does not elect immediate expensing under § 179. She elects additional first-year deprecation. Click here to access the depreciation table to use for this problem. Calculate Diana's total cost recovery deduction for 2023.
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answer in text form please (without image), Note: .Every entry should have narration please