Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1, 20X4, for $118,800 when the fair value of Sack's net assets was $13,000 higher than its $119,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $13,200. During 20X4, Sack sold land to Package at a $6,000 profit. Sack Grain reported net income of $20,000 and paid dividends of $4,700 in 20X4. Package reported income, exclusive of its income from Sack Grain, of $38,000 and paid dividends of $15,000 in 20x4. Required: a. Compute the amount of income assigned to the controlling interest in the consolidated income statement for 20X4. Controlling interest $ 49,430 b. By what amount will the 20X4 income assigned to the controlling interest increase or decrease if the sale of land had been from Package to Sack Grain, the gain on the sale of land had been included in Package's $38,000 income, and the $20,000 was income from operations of Sack Grain? Reported income will decrease by 48.830

Package Corporation acquired 90 percent ownership of Sack Grain Company on January 1, 20X4, for $118,800 when the fair value of Sack's net assets was $13,000 higher than its $119,000 book value. The increase in value was attributed to amortizable assets with a remaining life of 10 years. At that date, the fair value of the noncontrolling interest was equal to $13,200. During 20X4, Sack sold land to Package at a $6,000 profit. Sack Grain reported net income of $20,000 and paid dividends of $4,700 in 20X4. Package reported income, exclusive of its income from Sack Grain, of $38,000 and paid dividends of $15,000 in 20x4. Required: a. Compute the amount of income assigned to the controlling interest in the consolidated income statement for 20X4. Controlling interest $ 49,430 b. By what amount will the 20X4 income assigned to the controlling interest increase or decrease if the sale of land had been from Package to Sack Grain, the gain on the sale of land had been included in Package's $38,000 income, and the $20,000 was income from operations of Sack Grain? Reported income will decrease by 48.830

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Assume a world that meets all assumptions of the portfolio theory. In this world we solely trade in securities A and B like depicted in the graph below. Short selling is allowed. xA and XB indicate the proportions of security A and B within a portfolio respectively. P1, P2, P3 and P4 represent portfolios that can be created by trading (either long and/or short) in securhies A and B. P3 is the portfolio with the lowest risk; the risk of P3 is 0%. The risk of security A and B is measured by the standard deviation of the returns in the particular security and equals 20% for both. The correlation coefficient of the returns between A and B is -1. 40% P1 E(R) A 30% P2 20% P3 10% P4 ++ 30% 0% 10% 20% 40% O(R) Question: Indicate which statements are correct. Take into account that everything is possible, from all correct to all wrong.
arrow_forward Oh no! Our expert couldn't answer your question. Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience. Here's what the expert had to say: Hi and thanks for your question! Unfortunately we cannot answer this particular question due to its complexity. We've credited a question back to your account. Apologies for the inconvenience. Ask Your Question Again 5 of 10 questions left until 5/23/21 Question The management accountant at Miller Merchandising & More, Odail Russell is in the process ofpreparing the cash budget for the business for the fourth quarter of 2021. It is customary for thebusiness to borrow money during this quarter. Extracts from the sales and purchases budgets areas follows:Month cash sales sales on account purchasesAugust $85,000 $640,000 $420,000September $70,000 $550,000…
This question has not been submitted previously. Thank you
Your solution is wrong see the answers at bottom of the question
LutoSave 日 Off UnitlILabAssignment_Question1 O Search (Alt-Q) Protected View Home Insert Draw Page Layout Formulas Data Review View Help PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing fx Formula: Multiply, Subtract; Cell Referencing A D E F G H. K Formula: Multiply, Subtract; Cell Referencing Using Excel to Record Stock Entries Student Work Area PROBLEM Required: Provide input into cells shaded in yellow in this template. Select account names from the drop-down lists. Use cell references to the data area. Use mathematical formulas to calculate any amounts not given. On May 10, Jack Corporation issues common stock for cash. Shares of stock issued Par value per share 2,000 24 %24 10.00 Amount at which stock issued 18.00 Journalize the issuance of the stock. 10 11 Date Debit Credit 12 May 10 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 32 33 Enter Answer Ready 24
Please I need fast and check plagiarism please
I'm not sure if I did my calculations correctly for Aug 3.
It says they answers are wrong from your example.