Veerappan Corp. paid $3,000,000 to acquire all of the common stock of Jensen Inc. on January 1, 2015. Jensen's reported earnings for 2015 totaled $500,000, and it paid $150,000 in dividends during the year. The amortization of allocations related to the investment was $30,000. Veerappan's net income, not including the investment, was $4,200,000, and it paid dividends of $1,100,000. What is the amount of consolidated net income for the year 2015?
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- Veerappan Corp. paid $3,000,000 to acquire all of the common stock of Jensen Inc. on January 1, 2015. Jensen's reported earnings for 2015 totaled $500,000, and it paid $150,000 in dividends during the year. The amortization of allocations related to the investment was $30,000. Veerappan's net income, not including the investment, was $4,200,000, and it paid dividends of $1,100,000. What is the amount of consolidated net income for the year 2015?What is the amount of consolidated net income for the year?Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2018, the companies had the following account balances:Intra-entity sales of $320,000 occurred during 2017 and again in 2018. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2017, with $50,000 unsold on December 31, 2018.a. For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here?b. Prepare a consolidated income statement for the year ending December 31, 2018.
- Scott Company paid $2.800,000 to acquire all of the common stock of Dawn Corporation on January 1, 2023. Dawn's mported eanings for 2023 totaled $512.000 and it $160,000 in dividends during the year. The amortization of allocations related to the investment was $28.000. Scott's net income not including the investment, was $3.310.000 and it paid dividends of $950,000. What is the amount of consolidated net income for the year 2023? O $3,150.000 O $3.282.000 O $3.310.000 O $3,794,000 O $3.822.000Pop Corporation paid $3,600,000 for a 90 percent interest in Son Corporation on January 1, 2016; Son's total book value was $3,600,000. The excess was allocated as follows: $120,000 to undervalued equipment with a three-year remaining useful life and $280,000 to goodwill. The income statements of Pop and Son for 2016 are summarized as follows (in thousands): Sales Income from Son Cost of sales Depreciation expense Other expenses Net income Pop $8,000 360 (4,000) (800) (1.600) $ 1,960 Show Transcribed Text Son $3,200 (1,600) (480) (720) $ 400 1. Calculate the goodwill that should appear in the consolidated balance sheet of Pop and Subsidiary at December 31, 2016. 2. Calculate consolidated net income for 2016.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 ?
- BuyCo, Inc. holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2017, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2017, BuyCo continued to hold merchandise with a transfer price of $32,000.a. What Equity in Investee Income should BuyCo report for 2017?b. How will the intra-entity transfer affect BuyCo’s reporting in 2018?c. If BuyCo had sold the inventory to Marqueen, how would the answers to (a) and (b) have changed?On January 1, 2015, Parson Company purchases 80% of the common stock of Salary Company for $450,000. On this date, Salary has common stock, other paid-in capital in excess of par, and retained earnings of $50,000, $140,000, and $220,000, respectively. Any excess of cost over book value is due to goodwill. In both 2015 and 2016, Parson has accounted for the investment in Salary using the cost method. On January 1, 2016, Salary purchases 1,000 shares (10%) of the common stock of Parson Company from outside investors for $100,000 cash. It is expected that the shares may be resold later. Salary uses the cost method in accounting for the investment. During the last quarter of 2016, Parson sells merchandise to Salary for $48,000, one-fourth of which is still held by Salary on December 31, 2016. Parson’s usual gross profit on intercompany sales is 40%. The trial balances for Parson and Salary on December 31, 2016, are as follows:(attached)Complete the worksheet for consolidated financial…The Chambers Corporation was formed in early 2017. At the time of formation, Chamber spent the following amounts: accounting fees, $4,000; legal fees, $8,000; stock certificate costs, $3,000; initial franchise fee, $10,000; initial lease payment, $5,000; promotional fees, $3,000. Chamber intends to capitalize and amortize intangibles over the maximum allowable period in accordance with generally accepted accounting principles. Based on this strategy, what is Chambers's expense associated with organization costs in 2017? $33,000 $28,000 $6,000 $18,000
- In 2017, Bond Inc. bought May Corporation’s net assets for $2 million. At that time, May had total liabilities of $600,000, total current assets of $1.08 million, and total noncurrent assets of $2.52 million. Given these figures, Bond should account for the $1 million difference between the fair value of the net assets acquired and May’s purchase price by?On January 1, 2017, Server Company purchased a machine with an expected economic life of five years. On January 1, 2019, Server sold the machine to Patron Corporation and recorded the following entry: Cash 45,000 Accumulated Depreciation 28,000, Machine 70,000, Gain on Sale of Equipment 3,000. Patron Corporation holds 75 percent of server's voring shares.Server reported a net income of $50,000, and Patron reported income from its own operations of 100,000 for 2019/. There is no change in the economic life of the equipement as a result of the intercorporate tranfer. Based on the preceding information, in the preparation of the 2019 consolidated balance sheet, the machine will be : Debited for 25,000, Credited for 45,000, debited for 1,000, debited for 15,000On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? P1,035,000 Cr. P1,060,000 Cr. P40,000 Dr. No entry How much will the Investment in Associate account be debited/credited in 2019? P960,000 Cr. No Entry P15,000 Dr. P75,000 Dr.