What is the consolidation worksheet entry required to be made at the end of 2020 for the unrealized gain ?
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Hand owns 90% of Finger and uses the equity method to account for its investment in Finger. In 2020, Finger sells inventory (cost of $60,000) to Hand for $80,000. Hand remains with 30% of this inventory at the end of 2020.
What is the consolidation worksheet entry required to be made at the end of 2020 for the unrealized gain ?
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- Petunia Company acquired an 80% interest in Shaman Company in 2016. In 2017 and 2018, Shaman reported net income of $400,000 and $480,000, respectively. During 2017, Shaman sold $80,000 of merchandise $20,000 profit. Petunia sold the merchandise to outsiders during 2018 for $140,000. to Petunia For consolidation for a purposes, what is the noncontrolling interest's share of Shaman's 2017 and 2018 net income?Flathead Ltd owns all of the shares of Mullet Ltd. During the year ended 30 June 2022, Flathead Ltd sold inventory to Mullet Ltd for $30,000. The inventory had previously cost Flathead Ltd $24,000 and by 30 June 2022, Mullet Ltd had sold 75% of the inventory to external parties outside the group. All of this inventory was sold to external parties by 30 June 2022. The tax rate is 30%. The required consolidation entries for the year ended 30 June 2022 are: Sales revenue Dr $30,000 Cost of sales Cr $28,500 Inventory Cr $1,500 Deferred tax asset Dr $450 Income tax expense Cr $450 Retained earnings Dr $1,400 Income taxFalco owns 70% of teller. In 2021 teller sells inventory cost 77,000 to Falco for 110,000. Of this inventory 40,000 was not sold to third parties until 2022. During 2022 teller sells inventory cost 72,000 to Falco for 120,000. Of thos inventory, 50,000 was not sold to outsiders until 2023. In 2022 teller reports net income of 100,000. What is the noncontrolling interest in subsidiary net income in 2022.
- The following are several figures reported for Allister and Barone as of December 31, 2021: Allister Barone $ 500,000 $ 300,000 1,000,000 not given 500,000 230,000 Inventory Sales 800,000 Investment income Cost of goods sold Operating expenses 400,000 300,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date, Allister noted that Barone had developed a customer list worth $78,000 that was unrecorded on its accounting records and had a four-year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $130,000 to Allister for $180,00o. Of this amount, 10 percent remains unsold in Allister's warehouse at year-end. Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021: Amounts Inventory Sales Cost of goods sold Operating expenses Net income attributable…Watkins, Inc. acquires all of the outstanding stock of Glen Corporation on January 1, 2020. At that date, Glen owns only three assets and has no liabilities: Book Fair Value Value $40,000 $50,000 80,000 75,000 Equipment (10-year life) Building (20-year life) 200,000 300,000 Land If Watkins pays $450,000 in cash for Glen, what acquisition-date fair value allocation, net of amortization, should be attributed to the subsidiary's Equipment in consolidation at December 31, 2022?Fullerton Corporation owns 100% of Irvine Corporation's common stock. On January 2, 2020, Fullerton sold machinery with a carrying amount of $30,000 to Irvine Corp for $50,000. Irvine Corp is depreciating the acquired machinery over a 10-year life using the straight-line method. The related net adjustments to compute the 2020 and 2021 consolidated income (gain, loss, depreciation expense, etc.) before income tax would be an increase (decrease) of: Select one: a. $(16,000) for 2020 and $4,000 for 2021 b. $(18,000) for 2020 and $2,000 for 2021 c. $(20,000) for 2020 and $2,000 for 2021 d. $(20,000) for 2020 and $0 for 2021
- On January 1, 2018, Archie acquires 90% of Jughead. Analysis of data relative to this purchase indicates that goodwill of $70,000 was acquired in this purchase. The goodwill is unimpaired. On July 1, 2020, Jughead sold a patent (5-year life, no salvage value) to Archie with a sales price of $140,000. Jughead's books value was $70,000. The net income of Archie and Jughead in 2020 is $560,000 (from its own operations) and $140,000 (net), respectively. How much is the net income attributable to equity holders of parent in 2020? a) 616,000 b)629,300 c)637,000d)623,000Fried Inc. purchased 90% ownership of Chicken Corp. in 2020, at underlying book value. On that date, the fair value of non-controlling interest was equal to 10% of the book value of Chicken Corp. Fried Inc. purchased inventory from Chicken Corp. for P270,000 on September 1, 2021, and resold the 70% of the inventory to unrelated parties on December 5, 2021 for P300,000. Chicken Corp. produced the inventory sold to Fried Inc. for 201,000. The entities had no other transactions during 2021. What amount of consolidated net income will be assigned to Fried Inc. in 2021?* a. P 111,000 b. P 60,300 c. P 154,470 d. P 159,300 Thank you for answering!Choco, Inc. acquires 15% of Cake Corporation on January 1, 2020, for $130,000 when the book value of Cake’s net assets was $760,000. During 2020 Cake reported net income of $150,000 and paid dividends of $32,000. Cake has a land that are undervalued by $30,000 in January 1, 2020. On January 1, 2021, Choco purchased an additional 30% of Cake for $280,000, giving Choco the ability to significantly influence the operating policies of Cake. During 2021, Cake reported net income of $180,000 and paid dividends of $32,000. Cake’s land was undervalued by $32,000 in January 1, 2021. Any excess of cost over book value is attributable to Trademark which has a useful life of 8 years in January 1, 2020. During 2020 and 2021, there was no fair value adjustment for Cake (there was no changes in fair value). And during 2020 and 2021, there was no changes in net assets. 5) In 2021, using the equity method, what is the balance of the investment account in Cake at December 31, 2020? Show your…
- Leslie's Company bought 20% of Prudence Company's ordinary share on January 1, 2020 for P3,700,000. The carrying amount of Prudence's net assets at purchase date totaled P16,000,000. Fair values and carrying amounts were the same for all items, except for land and inventory, for which fair values exceed their carrying amounts by P3,000,000 and P1,000,000 respectively. All inventories at January 1, 2020 were sold during the year. During 2020, Prudence reported profit of P5,500,000 and paid P1,500,000 cash dividends. What amount should Leslie's Company report as investment in associate on December 31, 2020?In 2022, parent company sells inventory costing $60,000 fo to its 90% owned Subsidiary for $100,000.The sale was on account.20% of the inventory remained unsold until the following year 2023. 40% of the receivable was uncollected.In 2021 the parent company sold inventory costing $52,000 for $80,000.The subsidiary sold all of the inventory in 2021. Explain the necessary 2022 elimination entries in detail.Parent buys building (useful life 10 years) for $3,000,000 on January 1, 2020. On that same date, the parent sells the building to an 80% owned subsidiary for $4.000,000. The subsidiary will use the same 10-year useful life. How much Depreciation Expense will the subsidiary record in 2020 How much is consolidated Depreciation expense in 2020 What two worksheet entries are required for year-end 2020 (hint: entries TA and ED)
