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 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?