Perview Incorporated owns 90% of Software Company. Software Company owns 70% of Bronston Company. Operational income figures for the current year are presented below, which contain noinvestment income. Included in Software's income is a $100,000 unrealized gain on intercompany transfers and Bronston's income is a $50,000 unrealized gain on intercompany transfers toPerview. Perview Incorporated Software Company Bronston Company Operational Income $ 600, 000 $ 450,000 $ 350,000 What is Perview Incorporated's realized income for the current year?Multiple Choice $1, 104, 000 $1, 100, 000 $1, 122, 000 $1, 176, 000 $1, 257,000

SOLUTION:Given Informationlet's the break down the information:To calculate Perview Incorporated's…

Answered: Perview Incorporated owns 90% of…

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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ABC Corporation has P5,000,000 total assets, P500,000 gross working capital, P200,000 net working capital, and P1,500,000 of noncurrent liabilities. The gross working capital can be sold only at 80% of book value. The noncurrent assets are equal to their market values except for a building (book value = P500,000) and an equipment (book value = P300,000). They are 75% depreciated. The building has the following relevant information. Square Cost to Total Cost to Component Footage Reproduce Reproduce Foundation 100.00 P 1,000.00 P 100,000.00 Floor 3,000.00 500.00 1,500,000.00 Walls 900.00 300.00 270,000.00 Ceiling 1,500.00 400.00 600,000.00 Water, electrical and heating system 1,000.00 700.00 700,000.00 P3,170,000.00 Total For the equipment, a 1.25 index can be used to update its value. Based on the above, what is the value of the equity of the entity?
Alford Company and its 80 percent-owned subsidiary, Knight, have the following income statements for 2021: Knight $ (230,000) Alford $ (500,000) 300,000 40,000 140,000 10,000 20,000 20,000 (30,000) (36,200) $ (206, 200) Revenues Cost of goods sold Depreciation and amortization Other expenses Gain on sale of equipment Equity in earnings of Knight Net income 0 0 $ (60,000) Additional Information for 2021 • Intra-entity inventory transfers during the year amounted to $90,000. All intra-entity transfers were downstream from Alford to Knight. • Intra-entity gross profits in inventory at January 1 were $6,000, but at December 31, they are $9,000. • Annual excess amortization expense resulting from the acquisition is $11,000. • Knight paid dividends totaling $20,000. • The noncontrolling interest's share of the subsidiary's income is $9,800. . During the year, consolidated inventory rose by $11,000 while accounts receivable and accounts payable declined by $8,000 and $6,000, respectively. Net…
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Peat Company owns a 90% interest in Seaton Company. The consolidated income statement drafted by the controller of Peat Company appeared as follows: Peat Company and Subsidiary Consolidated Income Statement for Year Ended December 31, 2020 Sales Cost of Sales Operating Expense Consolidated Income $9,200,000 1,800,000 Less Noncontrolling Interest in Consolidated Income Controlling Interest in Consolidated Net Income 11,000,000 3,000,000 200,000 $2,800,000 During your audit you discover that intercompany sales transactions were not reflected in the controller's draft of the consolidated income statement. Information relating to intercompany sales and unrealized intercompany profit is as follows: $14,000,000 Cost Selling Price Unsold at Year-End 1/3 2/5 2019 Sales-Seaton to Peat $1,500,000 $1,800,000 2020 Sales-Peat to Seaton 900,000 1,400,000 Required: Prepare a corrected consolidated income statement for Peat Company and Seaton Company for the year ended December 31, 2020.

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