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Req A to C2 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the Investment method applied by the parent? Req D a. b. Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? Show less A

Req A to C2 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the Investment method applied by the parent? Req D a. b. Investment in Turner account Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? Show less A

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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Complete this question by entering your answers in the tabs below. Req A to C2 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net Income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the Investment method applied by the parent? Req D a. Investment in Turner account b. Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? Show Transcribed Text < Req A to C2 Req D viow transaction list Complete this question by entering your answers in the tabs below. 3 1 Prepare entry "C if the parent used the initial value method. Reg D > Req A to C2 Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) 2 Prepare entry "C if the parent used the partial equity method. 3 Prepare entry "C if the parent used the equity method. C Show less A
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Req A to C2 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net Income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the Investment method applied by the parent? Req D a. Investment in Turner account b. Consolidated net income c-1. Consolidated equipment c-2. Would this answer be affected by the investment method applied by the parent? Show Transcribed Text < Req A to C2 Req D viow transaction list Complete this question by entering your answers in the tabs below. 3 1 Prepare entry "C if the parent used the initial value method. Reg D > Req A to C2 Prepare entry *C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) 2 Prepare entry "C if the parent used the partial equity method. 3 Prepare entry "C if the parent used the equity method. C Show less A
Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 9,800 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $106,600. However, its equipment (with a five-year remaining life) was undervalued by $9,200 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $31,200, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Revenues Expenses Investment income Dividends declared Haynes Turner $ (625,000) $ (270,000) 446,000 141,000 0 60,000 Revenues Expenses Investment income Dividends declared Equipment Not given 90,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Haynes Turner $ (736,000) $ (322,000) 470, 800 177,500 0 40,000 398,000 Not given 100,000 524,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method.
Transcribed Image Text:Haynes, Inc., obtained 100 percent of Turner Company's common stock on January 1, 2020, by issuing 9,800 shares of $10 par value common stock. Haynes's shares had a $15 per share fair value. On that date, Turner reported a net book value of $106,600. However, its equipment (with a five-year remaining life) was undervalued by $9,200 in the company's accounting records. Also, Turner had developed a customer list with an assessed value of $31,200, although no value had been recorded on Turner's books. The customer list had an estimated remaining useful life of 10 years. The following balances come from the individual accounting records of these two companies as of December 31, 2020: Revenues Expenses Investment income Dividends declared Haynes Turner $ (625,000) $ (270,000) 446,000 141,000 0 60,000 Revenues Expenses Investment income Dividends declared Equipment Not given 90,000 The following balances come from the individual accounting records of these two companies as of December 31, 2021: Haynes Turner $ (736,000) $ (322,000) 470, 800 177,500 0 40,000 398,000 Not given 100,000 524,000 a. What balance does Haynes's Investment in Turner account show on December 31, 2021, when the equity method is applied? b. What is the consolidated net income for the year ending December 31, 2021? c-1. What is the consolidated equipment balance as of December 31, 2021? c-2. Would this answer be affected by the investment method applied by the parent? d. Prepare entry "C for the beginning of the Retained Earnings account on a December 31, 2021 by using initial value, partial equity and equity method.
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