ADV. ACCT LOOSELEAF W/ CONNECT ACCESS
13th Edition
ISBN: 9781266324857
Author: Hoyle
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 6P
To determine
Identify the appropriate answer for the given statement from the given choices.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
asap
On January 1, 2020, Chamberlain Corporation pays $586,800 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $23,700 results from the acquisition. On December 31, 2021, Neville reports revenues of $506,000 and expenses of $348,000 and Chamberlain reports revenues of $828,000 and expenses of $497,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?
Delta Corporation owns 70 percent of Sigma Company, and Sigma owns 60 percent of Pi, Inc., all
of which are domestic corporations. There are no excess amortizations associated with any of the
acquisitions. Information for the three companies for the year ending December 31, 2018 follows:
Delta
$500,000 $300,000 $250,000
$44,000
Sigma
Pi
Separate company net income
Intra-entity gross profits on transfers
of inventory which remain with the
buyer at the reporting date and are
included in operating income above
$10,000
1. What is the net income attributable to the non-controlling interest in Pi for 2018?
2. What is the consolidated net income for 2018?
3. What is Delta's accrual-based net income for 2018?
4. What is the total net income attributable to the non-controlling interests for 2018?
On July 1, Zamora Inc. agreed to sell the assets of its Golfright Division to Benito Inc. for $71 million.
The following additional facts pertain to the transaction:
• The Golfrignt Division qualifies as a component of the entity according to GAAP regarding discontinued operations.
• The book value of the Golfright's assets totaled $45 million on the date of the sale.
Golfright's operating income was a pre-tax loss of $160 million in 2020.
• Zamora's income tax rate is 40%.
Suppose that the Golfright Division's assets had not been sold by December 31, 2020, but were considered held for sale. Assume that the fair value
of these assets at December 31 was $71 million.
Calculate the amount of loss from discontinued operations Zamora Inc. will report in the income statement for 2020. (Please input answer without the
millions, i.e. 100 million would be entered as 100)
Chapter 4 Solutions
ADV. ACCT LOOSELEAF W/ CONNECT ACCESS
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Assuming that Pride, in its internal records,...Ch. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 1DYSCh. 4 - Prob. 2DYSCh. 4 - Costco Wholesale Corporation owns and operates...
Knowledge Booster
Similar questions
- Peter Corporation acquired an 80% interest in Stern Corporation several years ago when the book values and fair values of Stern's assets and liabilities were equal. At the time of acquisition, the cost of the 80% interest was equal to 80% of the book value of Stern's net assets. Separate company income statements for Peter and Stern for the year ended December 31, 2014 are summarized as follows: Required:Prepare a consolidated income statement for Peter Corporation and Subsidiary for 2014.arrow_forwardParent Company sells land with book value of P5,000 to Subsidiary Company for P6,000 in 2020. Subsidiary Company holds the land during 2021. Subsidiary Company sells the land for P8,000 to an outside entity in 2022. In 2020, the unrealized gain: A. Is initially included in the subsidiary’s accounts and must be eliminated from Parent Company’s income from Subsidiary Company under the cost method B. Is eliminated from consolidated net income by a working paper entry that includes a credit to the land account for P6,000 C. Is eliminated from consolidated net income by a working paper entry that includes a credit to the land account for P1,000 D. To be eliminated is affected by the non-controlling interest percentagearrow_forwardPenny Ltd, a reporting entity, acquired 100% of the issued shares of Lane Ltd on 1 July 2016. The transactions below represent intra-group transactions relevant to the consolidated financial statements for the 2020 (1 July 2019 to 30 June 2020) financial year. On 1 July 2017, Penny Ltd sold an item of plant to Lane Ltd for $320,000. At the date of sale, the plant had an original cost to Penny Ltd of $300,000 and accumulated depreciation of $60,000. At 1 July 2017, the plant had a remaining useful life of 4 years and zero residual value. Both Penny Ltd and Lane Ltd use the straight-line depreciation method for plant and equipment. The company income tax rate is 30%. Required: Show the consolidation adjustment entries needed to eliminate the above intra-group transactions for financial year ended 30 June 2020 in accordance with AASB 10 Consolidated Financial Statements. If no entry is required, please provide a brief explanation why you believe a consolidation adjusting entry is not…arrow_forward
- Richway Company owns 65% of the Highlands Company. On December 31, 2021, the last day of the accounting period, Venus sold to Highlands a noncurrent asset for 1,000. The asset's original cost was P2,500 and on December 31, 2021, its carrying amount in Venus books was P800. The group's consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. Under PAS consolidated and separate financial statements, what adjustments should be made for the consolidated statement of financial position figues for non-current assets and non-controlling interest? Non-Current Assets Non-controlling Interest A. Increase by P1,500 Increase by P 525 B. Reduce by P200 No change C. Reduce by P200 Reduce by P 70 D. Increase by P1,500…arrow_forwardFollowing are several figures reported for Allister and Barone as of December 31, 2018:Allister acquired 90 percent of Barone in January 2017. 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 4-year remaining life. Any remaining excess fair value over Barone’s book value was attributed to goodwill. During 2018, Barone sells inventory costing $130,000 to Allister for $180,000. 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 2018:InventorySalesCost of Goods SoldOperating ExpensesNet Income Attributable to Noncontrolling Interestarrow_forwardRichway Company owns 65% of the Highlands Company. On December 31, 2021, the last day of the accounting period, Venus sold to Highlands a noncurrent asset for P 1,000. The asset's original cost was P 2,500 and on December 31, 2021 its carrying amount in Venus books was P 800. The group's consolidated statement of financial position has been drafted without any adjustments in relation to its non-current asset. Under PAS consolidated and separate financial statements, what adjustments should be made to the consolidated statement of financial position figures for non-current assets and non-controlling interest? Non-Current Assets Non-Controlling Interest A. Increase by P 1,500 Increase by P 525 B. Reduce by P 200 No change C. Reduce by P 200 Reduce by P 70 D. Increase by P 1,500…arrow_forward
- On January 1, 2016, Parent Company purchased 100% of the common stock of Subsidiary Company for $320,000. On this date, Subsidiary had total owners' equity of $240,000. On January 1, 2016, the excess of cost over book value is due to a $15,000 undervaluation of inventory, to a $5,000 overvaluation of Bonds Payable, and to an undervaluation of land, building and equipment. The fair value of land is $50,000. The fair value of building and equipment is $200,000. The book value of the land is $30,000. The book value of the building and equipment is $180,000. Required: a. Using the information above and on the separate worksheet, complete a value analysis schedule b. Complete schedule for determination and distribution of the excess of cost over book value c. Complete the worksheet for a consolidated balance sheet as of January 1, 2016arrow_forwardPlacid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $580,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $6,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $480,000. Scenic reported net income of $290,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $58,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 320,000 $ 108,000 Land 780,000 380,000 Equipment (net) 580,000 480,000 During 2017, intra-entity sales of $165,000 (original cost of $78,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2017. In 2018, $270,000 in intra-entity sales were made…arrow_forwardPlacid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $610,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $4,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $510,000. Scenic reported net income of $320,000. Placid Lake declared $200,000 in dividends during this period; Scenic paid $61,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 350,000 $ 111,000 Land 810,000 410,000 Equipment (net) 610,000 510,000 During 2017, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2017. In 2018, $300,000 in intra-entity sales were made…arrow_forward
- Stick Company reports net assets with a book value and fair value of $204,000. Paste Corporation acquires 75 percent ownership for $153,000. Paste reports net assets with a book value of $512,000 and a fair value of $633,000 at that time, excluding its investment in Stick. Required: For each of the following, compute the amounts that would be reported immediately after the combination under current accounting practice: Consolidated net identifiable assets. Noncontrolling interest.arrow_forward1. Sub was an 80 percent-owned subsidiary of Pub Corporation throughout the 2019–2021period. Pub’s separate income (excludes income from Sub) was $7,200,000, $6,600,000, and$7,500,000 in 2019, 2020, and 2021, respectively. Pub acquired its interest in Sub at itsunderlying book value, which was equal to fair value on July 1, 2017.2. Pub sold inventory items to Sub during 2019 at a gross profit to Pub of $720,000. Half themerchandise remained in Sub’s inventory at December 31, 2019. Total sales by Pub to Sub in2019 were $1,800,000. The remaining merchandise was sold by Sub in 2020.3. Pub’s inventory at December 31, 2020, included items acquired from Sub on which Submade a profit of $410,000. Total sales by Sub to Pub during 2020 were $1,600,000.4. There were no unrealized profits in the December 31, 2021 inventories of either Sub orPub.5. Pub uses the equity method of accounting for its investment in Sub. . By reference to the data in the problem set, discuss the meanings of upstream…arrow_forwardThe S Company owns 70% of the G Company. On the last day of the accounting period G sold to S a non-current asset for P210,000. The asset originally cost P480,000 and at the end of the reporting period its carrying amount in G’s books was P160,000. The group’s consolidated statement of financial position has been drafted without any adjustments in relation to this non-current asset. What adjustments should be made to the consolidated statement of financial position figures for retained earnings? Increase or decrease? * A. P50,000 decrease B. P15,000 decrease C. P50,000 increase D. Answer not given E. P35,000 decreasearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education