LOOSE-LEAF Advanced Financial Accounting with Connect
11th Edition
ISBN: 9781259605192
Author: Theodore E. Christensen
Publisher: McGraw-Hill Education
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Chapter 7, Problem 7.15E
a.
To determine
Introduction:
To prepare: Depreciation expense for the year 20X9.
b.
To determine
Introduction: Depreciation is a process of reducing the book value of assets due to its continuous use. It represents the gradual and permanent decrease in the value, quality or quantity of an asset because of its constant use.
To prepare: Calculate depreciation expense to be recorded by S company.
c.
To determine
Introduction:
Eliminating entries: In preparing the consolidated financial statement, sums owed by one company to the other company within the group should be eliminated, for intercompany transactions, for this parent company eliminates the effect of intercompany transactions by making eliminating entries.
To prepare:
d.
To determine
Introduction:
Eliminating entries: In preparing the consolidated financial statement, sums owed by one company to the other company within the group should be eliminated, for intercompany transactions, for this parent company eliminates the effect of intercompany transactions by making eliminating entries.
To prepare: Calculate the amount of income assigned to non-controlling interest that should be recorded in the consolidated income statement for the year 20X9 if income reported by S company is $40,000.
5.
To determine
Introduction:
Eliminating entries: In preparing the consolidated financial statement, sums owed by one company to the other company within the group should be eliminated, for intercompany transactions, for this parent company eliminates the effect of intercompany transactions by making eliminating entries.
To prepare: Calculate the amount of income assigned to non-controlling interest that should be recorded in the consolidated income statement for the year 20X9 if income reported by S company is $40,000 assuming fair value of non-controlling interest at the date of acquisition equal to 30% S company’s book value
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Pea Company purchased 70 percent of Split Company’s stock approximately 20 years ago. On December 31, 20X8, Pea purchased a building from Split for $300,000. Split had purchased the building on January 1, 20X1, at a cost of $400,000 and used straight-line depreciation on an expected life of 20 years. The asset’s total estimated economic life is unchanged as a result of the intercompany sale.
Record the entry to eliminate the gain on the equipment and to correct the asset's basis.
Record the entry to adjust Accumulated Depreciation.
Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a
building from Split for $372,000. Split had purchased the building on January 1, 20X1, at a cost of $472,000 and used straight-line
depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany
sale.
Required
a. What amount of depreciation expense on the building will Pea report for 20X9?
Annual depreciation expense reported by Pea
Annual depreciation expense reported by Split
b. What amount of depreciation expense would Split have reported for 20X9 if it had continued to own the building?
No
A
Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a
building from Split for $372,000. Split had purchased the building on January 1, 20X1, at a cost of $472,000 and used straight-line
depreciation on an expected life of 20 years. The…
Pea Company purchased 70 percent of Split Company's stock approximately 20 years ago. On December 31, 20X8, Pea purchased a
building from Split for $300,000. Split had purchased the building on January 1, 20X1, at a cost of $400,000 and used straight-line
depreciation on an expected life of 20 years. The asset's total estimated economic life is unchanged as a result of the intercompany
sale.
Required:
a. What amount of depreciation expense on the building will Pea report for 20X9?
Answer is complete but not entirely correct.
Annual depreciation expense reported by Pea S 33,333
d. What amount of income will be assigned to the noncontrolling interest in the consolidated income statement for 20X9 if Split
reports net income of $ 40,000 for 20X9?
Income assigned to noncontrolling interest
e. Split reports assets with a book value of $ 350,000 and liabilities of $ 150,000 at January 1, 20X9, and reports net income of $
40,000 and dividends of $ 15,000 for 20X9. What amount will be assigned…
Chapter 7 Solutions
LOOSE-LEAF Advanced Financial Accounting with Connect
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.8ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Computation of Consolidated Net Income Petime...Ch. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.36PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.39APCh. 7 - Prob. 7.40APCh. 7 - Modified Equity Method Using the data in P7-33, on...Ch. 7 - Prob. 7.42AP
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