Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - On January 2, 2016, East Company acquired 30% of the stocks of West Company for $20 million in cash. East Company accounts for its investment using the equity method. At the time of acquisition, West Company's balance sheet was as follows (in millions):
Assets
Liab. and equity
Current Assets
20
Current Liabilities
42
Property and equipment, net
415
Long-term debt
518
Patents and trademarks
150
Capital Stock
12
Retained earnings
13
Total Assets
585
Total Liabilities and Equity
Valuation of West's assets and liabilities revealed that its reported patents and trademarks (10- year life) had a fair value of $160 million and it had unrecognized brand names (15-year life) worth $9 million. West's December 31, 2018, retained earnings balance is $25 million. For 2018, it reported net income of $2.5 million and paid $650,000 in dividends.
Required -
1. Prepare the 2018 entries to report the above information on East's books? Show all your calculations.
2. Calculate the Investment in West Company, reported on East's December 31, 2018 balance sheet. Show all your calculations.
The trial balance of Mendez Company at the end of its fiscal year, August 31, 2017, includes these accounts: Beginning Inventory $18,700.
a companys sales are 50 in cah and 50 on credit. 70 of the credit sales are colected in the month of the sale 20 in the
Calculate the following variances: Direct manufacturing labor rate variance, Direct manufacturing labor usage variance and Direct materials usage variance
Explain what circumstances would call for Higley to compute its deferred tax liability at the end of 2010 by multiplying the cumulative temporary difference by: (a) 45%. (b) 40%. (c) 34%.
1. when merchandise that was sold on account is returned which accounts are affected?a.cash accounts receivable cost
Prepare an income statement for the year 2017 starting with income from continuing operations before taxes.
generally accepted accounting principles gaap and international financial reporting standards ifrs differ significantly
On January 1, 2011, Dexter Corporation purchased a piece of equipment, Calculate the original cost of the equipment
Kaizen budgeting for carbon emissions. Apex Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona.
The company uses a predetermined overhead rate to apply overhead cost to jobs. The rate for the year was $5 per machine-hour; a total of 10,800 machine-hours was recorded for the year. All raw materials ultimately become direct materials-none are ..
Determine Rogene's taxable income for the current year. Identify any temporary or permanent book-tax differences
Prepare the corporation's journal entry to record the reacquisition of the bonds
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd