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Question 8 Manson Corporation acquired 80 percent of Sense Corporation's voting stock on January 1, 20X2, for $320,000. The fair value of the noncontrolling interest was $80,000 at the date of acquisition. Sense reported common stock outstanding of $100,000 and retained earnings of $240,000. The differential is assigned to buildings with an expected life of 15 years at the date of acquisition. On December 31, 20X4, Manson had $20,000 of unrealized profits on its books from inventory sales to Sense, and Sense had $30,000 of unrealized profit on its books from inventory sales to Manson. All inventory held at December 31, 20X4, was sold during 20X5. On December 31, 20X5, Manson had $15,000 of unrealized profit on its books from inventory sales to Sense, and Sense had unrealized profit on its books of $50,000 from inventory sales to Manson. In 20x5 Sense reported net income of $100,000. The amount Manson will report as Income from Sense Company for year 20x5 would be: O $60.800. $62,800. O $65.800. O $68,000.

Question 8 Manson Corporation acquired 80 percent of Sense Corporation's voting stock on January 1, 20X2, for $320,000. The fair value of the noncontrolling interest was $80,000 at the date of acquisition. Sense reported common stock outstanding of $100,000 and retained earnings of $240,000. The differential is assigned to buildings with an expected life of 15 years at the date of acquisition. On December 31, 20X4, Manson had $20,000 of unrealized profits on its books from inventory sales to Sense, and Sense had $30,000 of unrealized profit on its books from inventory sales to Manson. All inventory held at December 31, 20X4, was sold during 20X5. On December 31, 20X5, Manson had $15,000 of unrealized profit on its books from inventory sales to Sense, and Sense had unrealized profit on its books of $50,000 from inventory sales to Manson. In 20x5 Sense reported net income of $100,000. The amount Manson will report as Income from Sense Company for year 20x5 would be: O $60.800. $62,800. O $65.800. O $68,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Question 8 Manson Corporation acquired 80 percent of Sense Corporation's voting stock on January 1, 20X2, for $320,000. The fair value of the noncontrolling interest was $80,000 at the date of acquisition. Sense reported common stock outstanding of $100,000 and retained earnings of $240,000. The differential is assigned to buildings with an expected life of 15 years at the date of acquisition. On December 31, 20X4, Manson had $20,000 of unrealized profits on its books from inventory sales to Sense, and Sense had $30,000 of unrealized profit on its books from inventory sales to Manson. All inventory held at December 31, 20X4, was sold during 20X5. On December 31, 20X5, Manson had $15,000 of unrealized profit on its books from inventory sales to Sense had unrealized profit on its books of $50,000 from inventory sales to Manson. In 20X5 Sense reported net income of $100,000. The amount Manson will report as Income from Sense Company for year 20X5 would be: O $60,800. $62,800. O $65,800. O $68,000. ense, and i
Transcribed Image Text:Question 8 Manson Corporation acquired 80 percent of Sense Corporation's voting stock on January 1, 20X2, for $320,000. The fair value of the noncontrolling interest was $80,000 at the date of acquisition. Sense reported common stock outstanding of $100,000 and retained earnings of $240,000. The differential is assigned to buildings with an expected life of 15 years at the date of acquisition. On December 31, 20X4, Manson had $20,000 of unrealized profits on its books from inventory sales to Sense, and Sense had $30,000 of unrealized profit on its books from inventory sales to Manson. All inventory held at December 31, 20X4, was sold during 20X5. On December 31, 20X5, Manson had $15,000 of unrealized profit on its books from inventory sales to Sense had unrealized profit on its books of $50,000 from inventory sales to Manson. In 20X5 Sense reported net income of $100,000. The amount Manson will report as Income from Sense Company for year 20X5 would be: O $60,800. $62,800. O $65,800. O $68,000. ense, and i
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