Question: 21-25 Cayman Inc., brought 30% Maya Company on January 1, 2013, for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held at year-End 2013 $30,000 2014 $48,000 $45,000 $80,000 $9,000 $20,000 Maya reported a net income of $100,000 in 2013 and $120,000 in 2014 while paying $40,000 in dividends each year. What is the amount of unrealized inventory profit to be deferred on December 31, 2014?

Question: 21-25 Cayman Inc., brought 30% Maya Company on January 1, 2013, for $450,000. The equity method of accounting was used. The book value and fair value of the net assets of Maya on that date were $1,500,000. Maya began supplying inventory to Cayman as follows: Year Cost to Maya Transfer Price Amount Held at year-End 2013 $30,000 2014 $48,000 $45,000 $80,000 $9,000 $20,000 Maya reported a net income of $100,000 in 2013 and $120,000 in 2014 while paying $40,000 in dividends each year. What is the amount of unrealized inventory profit to be deferred on December 31, 2014?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 4RE: Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020....

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Problem 2 Pine Company holds 60% of Spruce Company stock. Pine has sold inventory to Spruce Company as follows: year Cost to Pine Sales price to spruce Percen of Sold Held at Year Pine Spruce Year end 2017 $193,000 $347,000 30% 2018 $206,000 $310,000 20% 2019 $360,000 $450,000 25% 2020 $150,000 $250,000 30% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020: Pine Co. Spruce Sales $ 5,100,000 3,900,000 Cost of goods sold $ 3,570,000 2,400,000 Merchandise inventory $ 580,000 390,000 What will be reported as consolidated inventory at 12/31/2020? note: Find the profit margin…
Problem 2 Pawn Company holds 70% of Sell Company stock. Pawn has sold inventory to Sell Company as follows: Year 2019 2020 2021 2022 Sales Price to Cost to Pawn Sell $203,000 $355,000 $208,000 $312,000 $360,000 $450,000 $150,000 $250,000 Percent of Sold Inventory Held at Year end 30% 40% 25% 20% The following balances were included in the individual financial statements of each company for the year ended 12/31/2022: Sell Sales Pawn $6,500,000 3,700,000 $ 3,470,000 2,200,000 $ 590,000 350,000 Cost of goods sold Merch. inventory a. What will be reported as consolidated sales in the year 2022? b. What will be reported as consolidated inventory at 12/31/2022? c. What will be reported as consolidated cost of goods sold for 2022? d. Were the intra-entity sales of inventory items upstream or downstream?
roblem 2 Pine Company holds 60% of Spruce Company stock. Pine has sold inventory to Spruce Company as follows: year Cost to Pine Sales price to spruce Percen of Sold Held at Year Pine Spruce Year end 2017 $193,000 $347,000 30% 2018 $206,000 $310,000 20% 2019 $360,000 $450,000 25% 2020 $150,000 $250,000 30% The following balances were included in the individual financial statements of each company for the year ended 12/31/2020: Pine Co. Spruce Sales $ 5,100,000 3,900,000 Cost of goods sold $ 3,570,000 2,400,000 Merchandise inventory $ 580,000 390,000 consilidated inventory is 940,000 c. What will be reported as consolidated cost of goods sold for…
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Question 15 Not yet answered Smith Company purchases $60,000 of inventory during the period and sells $18,000 of it for $30,000. Beginning of the period inventory was $3,000. What is the company's inventory balance to be reported on its balance sheet at year end? Select one: O a. $18,000 b. $3,000 c. $2,000 O d. $45,000
QUESTION 1: The inventory value for the financial statements of Global Co for the year ended 30 June 20X3 was based on a inventory count on 7 July 20X3, which gave a total inventory value of $950,000. Between 30 June and 7 July 20X6, the following transactions took place. Purchase of goods 11,750usd Sale of goods ( mark up on cost at15%) 1,500usd What figure should be included in the financial statements for inventories at 30 june 20X3?
Subject : Accounting
Refer to RE22-2. Assume Heller Company had sales revenue of 510,000 in 2019 and 650,000 in 2020. Prepare Hellers partial income statements (through gross profit) for 2019 and 2020. RE22-2 Heller Company began operations in 2019 and used the LIFO method to compute its 300,000 cost of goods sold for that year. At the beginning of 2020, Heller changed to the FIFO method. Heller determined that its cost of goods sold under FIFO would have been 250,000 in 2019. For 2020, Hellers cost of goods sold under FIFO was 360,000, while it would have been 410,000 under LIFO. Heller is subject to a 21% income tax rate. Compute the cumulative effect of the retrospective adjustment on prior years income (net of taxes) that Heller would report on its retained earnings statement for 2020.