Puffin Industries acquired all of Sunset Coast Digital's stock on January 1, 2014, for $1,750,000 $1,050,000 in excess of book value. At that time, Sunset Coast's inventory (LIFO) was overvalued by $250,000 and its plant assets (10-year life) were overvalued by $500,000. The remaining excess of cost over book value is attributed to undervalued identifiable intangible assets being amortized over 20 years. Sunset Coast depreciates plant assets and amortizes intangibles by the straight-line method. During the next three years, Sunset Coast reported a total net income of $425,000 and paid out 50 percent in dividends. Puffin carries its investment in Sunset Coast using the complete equity method. Sunset Coast's inventory increased each year since it was acquired by Puffin, and Sunset Coast's reported net income for 2016 was $100,000. If Puffin reports $300,000 net income from its own operations in 2016, what is the consolidated net income for 2016?
Q: Sherfield Company uses a normal costing system, applying overhead.... Need answer the general…
A: Step 1: Define Manufacturing Overhead AllocationThe standard costing helps in the process of…
Q: Calculate
A: Explanation of Net Profit:Net Profit is the financial gain a company achieves after deducting all…
Q: Financial accounting questions
A: Step 1: Define Variance AnalysisIn cost accounting, the use of variance analysis is significant in…
Q: Liam owns a nondepreciable capital asset held for investment. If you give correct answer for this…
A: To determine Liam's Long-Term Capital Gain or Loss, we need to calculate the following: Adjusted…
Q: Answer? ? General Accounting
A: Formula:Interest = Principal x Interest Rate x Time (in years) Calculation:Interest = $7,000 x 6% x…
Q: What is amount of Income Or Loss?
A: Explanation of Contribution MarginContribution margin is the amount remaining from sales revenue…
Q: Book equivalent of taxable income??? General accounting
A: Step 1: Define Income taxThe government collects tax revenue from residents for initiatives that…
Q: The Art Attack Corporation reported sales revenue (accrual basis) of $52,000 for 2019. The accounts…
A: Explanation of Sales Revenue (Accrual Basis): Sales revenue on an accrual basis represents income…
Q: Do fast answer of this accounting questions
A: Step 1: Define Inventory Types:For a manufacturing concern, inventory has three classifications: raw…
Q: Hii expert please given answer financial accounting
A: Step 1: Define Work-in-Process InventoryWork-in-process inventory is one of the inventory classes…
Q: Hello tutor please provide correct answer general Accounting
A: To calculate the total fixed costs, we use the formula for operating income: Operating Income =…
Q: Hi expert please give me answer general accounting question
A: Step 1: Definition of Relevant SalesRelevant Sales: The sales figure that includes the new product's…
Q: I want to correct answer general accounting
A: Step 1: Recall the Cost of Goods Manufactured (COGM) formula.= total manufacturing costs + beginning…
Q: Financial accounting
A: Step 1: Define Profit MarginThe profit margin ensures an adequate return on the cash invested. To be…
Q: What is the adjusted cost of goods sold for the year? General accounting
A: Step 1: Define Adjusted Cost of Goods SoldA manufacturing company has an adjusted and unadjusted…
Q: if contingent consideration, acqusition related costs and contingent liabilities included in…
A: Goodwill is an intangible asset that is associated with the purchase of one company by another.…
Q: = If Liabilities Equity AED 80,000, then Assets A. AED 210,000 B. AED 90,000 C. AED 150,000 D. AED…
A: Hello student! A business' assets may come from either liabilities or equity. This is represented by…
Q: Assume two companies A and B both have earnings... Please need help with this financial accounting…
A: Step 1: Define Interest ExpenseWhen a firm acquires debt for its capital structure, it must pay a…
Q: Why does stakeholder diversity influence disclosure choices? [Financial Accounting MCQ] (a)…
A: Explanation of Stakeholder Diversity: This refers to the variety of different groups and individuals…
Q: Kindly help me Accounting question
A: Part (a)The calculation of the Cash Conversion Cycle is as follows:Cash Conversion Cycle = Inventory…
Q: Do fast answer of this accounting questions
A: Step 1: Definition of Accounting Equation and Equity ChangesThe accounting equation states that…
Q: JOB 786
A: Explanation of Direct Materials Cost: Direct materials cost represents the total cost of raw…
Q: GP FOR THIS
A: Explanation of Sales Revenue: Sales revenue represents the total amount of money the company…
Q: Provide answer financial accounting
A: Step 1: Given Value for Calculation Current Price of Stock = p = $64.37Last Year Dividend = d =…
Q: At the end of last year, James, a 30% partner in the four- person... Please answer the accounting…
A: Step 1: Definition of Gain or Loss on Sale of Partnership InterestWhen a partner sells their…
Q: Please tutor help me to get answer of this below general accounting question
A: Explanation of Load Optimization Tracking: Load optimization tracking is a management system used to…
Q: If the beginning inventory solve this accounting questions
A: Step 1: Define Cost of Goods SoldThe cost of goods sold is the direct expense incurred in the…
Q: How does dimensional complexity affect account structures?
A: Explanation of Dimensional Complexity: This refers to the multiple layers and aspects of an…
Q: Give correct solution for this following requirements on these general accounting question
A: 1. Compute the revenue for each show Revenue per show is calculated as the number of tickets sold…
Q: Please provide this question solution general accounting
A: Step 1: DefinitionPredetermined Overhead Rate: The budgeted fixed overhead rate applied to each…
Q: Expert need your help
A: Net sales will be determined by deducting the sales returns, allowances, and discounts given to…
Q: When should modified attribute mapping replace standard classification? (A) Complex characteristics…
A: Modified attribute mapping should replace standard classification when the complexity of the…
Q: Financial Accounting
A: Step 1: Definition of Total Manufacturing CostsTotal manufacturing costs include the direct…
Q: Hi expert provide correct answer general accounting
A: Step 1: Define Manufacturing OverheadManufacturing overhead can be defined as the accumulated value…
Q: A manufacturing companie that products a single product has sovel this question general Accounting
A: Step 1: Define Variable CostingVariable costing is a method to prepare an income statement. The…
Q: Provide answer financial accounting
A: Step 1: Define Overhead RateOverhead rate mean the predetermined rate of the overhead for the…
Q: Kindly help me Accounting question
A: The overhead rate represents the cost of overhead allocated to each direct labor hour. By using the…
Q: Please answer the general accounting question not use ai
A: Step 1: Define Lower-of-Cost-or-Market (LCM)The lower-of-cost-or-market (LCM) rule requires…
Q: Hi expert please give me answer general accounting question
A: Step 1: Definition of Variable Overhead Spending VarianceThe variable overhead spending variance…
Q: Hello tutor please given correct answer general Accounting
A: Step 1: Calculate Total Machine Hours for Each Product• Formula: Total Machine Hours per Product =…
Q: ANSWER FAST
A: Understand the note's termsPrincipal Amount: $600,000.Annual Payments: Three equal annual payments…
Q: Provide answer of this Question with general Accounting Method
A: Absorption Costing:Absorption costing, also known as full costing, is a costing method where all…
Q: Accounting Question please answer
A: To determine the net income that Messer Company reported for 20X9, we need to consider the portion…
Q: If you give me wrong answer I will give you unhelpful rate on these general accounting question
A: Step 1: Define Net IncomeNet income is an accounting approach in which all the expenses and receipts…
Q: The per unit standards for direct solve this accounting questions
A: Step 1: Definition of Direct Labor VarianceThe total direct labor variance measures the difference…
Q: Kindly help me Accounting question
A: Step 1: Definition of Break-Even and Target Profit AnalysisBreak-even and target profit analysis…
Q: Jackson trading uses a periodic inventory solve this accounting questions
A: Step 1:Identify the valuesStep 2:Substitute into the formulaStep 3:Perform the calculations
Q: What was the return you received over the year on these financial accounting question?
A: Step 1: Define Holding Period ReturnThe holding period return (HPR) is a percentage measure of the…
Q: Aaron's Inc., and Rent A Centre, Inc., are two publicly traded.... Please answer the general…
A: Step 1: Define Profitability RatiosInvestors and analysts use profitability ratios to understand the…
Q: How do cost-plus-incentive contracts affect revenge recognition timing?
A: Under cost-plus-incentive contracts, revenue is typically recognized based on estimates, including…
Puffin industries acquired all of sunset coast solve this accounting questions
Step by step
Solved in 2 steps
- Tyler Company acquired all of Jasmine Company’s outstanding stock on January 1, 2016, for $206,000 in cash. Jasmine had a book value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on Jasmine’s financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition, Jasmine reported the following: In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow: Determine and explain the following account balances as of December 31, 2018: a. Investment in Jasmine Company (on Tyler’s individual financial records). b. Equity in Subsidiary Earnings (on Tyler’s individual financial records). c. Consolidated Net Income. d. Consolidated Equipment (net). e. Consolidated Buildings (net). f. Consolidated Goodwill (net). g. Consolidated Common Stock. h. Consolidated Retained…Please provide this question solution general accountingFoxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1, 2016, for $600,000 cash. Greenburg’s accounting records showed net assets on that date of $470,000, although equipment with a 10-year remaining life was undervalued on the records by $90,000. Any recognized goodwill is considered to have an indefinite life. Greenburg reports net income in 2016 of $90,000 and $100,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years. Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses. a. Determine the December 31, 2018, consolidated balance for each of the following accounts: Depreciation Expense Dividends Declared Revenues Equipment Buildings Goodwill Common Stock b. How does the parent’s choice of an accounting method for its investment affect the balances computed in requirement (a)? c. Which method of accounting for this subsidiary is the parent actually using for internal…
- At the beginning of 2016, Metatec Inc. acquired Ellison Technology Corporation for $600 million. In addition tocash, receivables, and inventory, the following assets and their fair values were also acquired:Plant and equipment (depreciable assets) $150 millionPatent 40 millionGoodwill 100 millionThe plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortizedusing the straight-line method.At the end of 2018, a change in business climate indicated to management that the assets of Ellison might beimpaired. The following amounts have been determined:Plant and equipment:Undiscounted sum of future cash flows $ 80 millionFair value 60 millionPatent:Undiscounted sum of future cash flows $ 20 millionFair value 13 millionGoodwill:Fair value of Ellison Technology Corporation $450 millionFair value of Ellison’s net assets (excluding goodwill)…Giant acquired all of Small’s common stock on January 1, 2014, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $90,000 of the fair-value price was attributed to undervalued land while $50,000 was assigned to undervalued equipment having a 10-year remaining life. The $60,000 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. Following are individual financial statements for the year ending December 31, 2018. On that date, Small owes Giant $10,000. Small declared and paid dividends in the same period. Credits are indicated by parentheses. a. How was the $135,000 Equity in Income of Small balance computed? b. Without preparing a worksheet or consolidation entries, determine and explain the totals to be reported by this business combination for the…Need help with this accounting problem
- Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $32,500 of the fair-value price was attributed to undervalued land while $95,500 was assigned to undervalued equipment having a 10-year remaining life. The $72,000 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. The following are individual financial statements for the year ending December 31, 2021. On that date, Small owes Giant $11,900. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant Small Revenues $ (1,183,550 ) $ (462,500 ) Cost of goods sold 583,000 98,500 Depreciation expense 187,000 148,000 Equity in income of Small (206,450 ) 0…Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $90,000 of the fair-value price was attributed to undervalued land while $50,000 was assigned to undervalued equipment having a 10-year remaining life. The $60,000 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. The following are individual financial statements for the year ending December 31, 2021. On that date, Small owes Giant $10,000. Small declared and paid dividends in the same period. Credits are indicated by parentheses. How was the $135,000 Equity in Income of Small balance computed? Without preparing a worksheet or consolidation entries, determine and explain the totals to be reported by this business combination for the…Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $37,500 of the fair-value price was attributed to undervalued land while $98,000 was assigned to undervalued equipment having a 10-year remaining life. The $64,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. The following are individual financial statements for the year ending December 31, 2021. On that date, Small owes Giant $12,800. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant Small Revenues $ (1,298,800 ) $ (460,000 ) Cost of goods sold 610,000 115,000 Depreciation expense 190,000 203,000 Equity in income of Small (132,200 ) 0…
- Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $37,500 of the fair-value price was attributed to undervalued land while $98,000 was assigned to undervalued equipment having a 10-year remaining life. The $64,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. The following are individual financial statements for the year ending December 31, 2021. On that date, Small owes Giant $12,800. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant Small Revenues $ (1,298,800 ) $ (460,000 ) Cost of goods sold 610,000 115,000 Depreciation expense 190,000 203,000 Equity in income of Small (132,200 ) 0…Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the acquisition date, $37,500 of the fair-value price was attributed to undervalued land while $98,000 was assigned to undervalued equipment having a 10-year remaining life. The $64,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Over the next few years, Giant applied the equity method to the recording of this investment. The following are individual financial statements for the year ending December 31, 2021. On that date, Small owes Giant $12,800. Small declared and paid dividends in the same period. Credits are indicated by parentheses. Giant Small Revenues $ (1,298,800 ) $ (460,000 ) Cost of goods sold 610,000 115,000 Depreciation expense 190,000 203,000 Equity in income of Small (132,200 ) 0…On January 1, 2017, Perla Corporation purchased all of the outstanding common stock of Siena Company for $220,000 cash. On that date, Siena's net assets had a book value of $148,000. Equipment with an 8-year life was undervalued by $20,000 in Siena's financial records. Siena has a database that is valued at $52,000 and will be amortized over ten years. Siena reported net income of $25,000 in the year of acquisition and $32,500 in the following year. Dividends of $2,500 were declared and paid for 2017 and 2018. For each of the two companies, selected account balances as of December 31, 2019 are as follows: Perla Siena $ 250,000 $ 142,500 175,000 Revenues Expenses Equipment (net) Retained Earnings, beginning of the year 100,000 125,000 150,000 25,000 000 Dividends Pa id 5,000 What is the consolidated net income for 2019 ?