Reference no: EM132543598
Question - On January 1, 2019, Pinnead Incorporated paid $300,000 for an 80% interest in Shalle Company. At that time, Shalle's total book value was $300,000. Patents were undervalued in the amount of $10,000. Patents had a 5-year remaining useful life, and any remaining excess value was attributed to goodwill. The income statements for the year ended December 31, 2019 of Pinnead and Shalle are summarized below:
Pinnead Shalle
Sales $800,000 $300,000
Income from Shalle 78,400
Cost of sales (100,000) (100,000)
Depreciation (70,000) (30,000)
Other Expenses (130,000) (70,000)
Net Income $578,400 $100,000
Requirements -
1. Calculate the goodwill that will appear in the consolidated balance sheet of Pinnead and Subsidiary at December 31, 2019.
2. Calculate consolidated net income for 2019.
3. Calculate the noncontrolling interest share for 2019.
4. Prepare consolidated income statement for 2019.
|
Discuss accounting implications of intended sale of assets
: Bower is a 70% subsidiary of Minny. Discuss the ethical issues and accounting implications of the intended sale of assets to Minny by Bower.
|
|
How to compute earnings per share
: Compute earnings per share for 2020. Assume that financial statements for 2020 were issued in March 2021. (Round answer to 2 decimal places, e.g. $2.55.)
|
|
Calculate the depreciation expenses for each year
: Mocca Coffee purchased a professional coffee machine on January 1, 2020 for $2,000. Calculate the depreciation expenses for each year
|
|
Write about the reflection on the source
: The Annotated Bibliography should include no fewer than 5 sources (but not your text). You should find a minimum 3 sources from the Rasmussen library.
|
|
Calculate the noncontrolling interest share
: On January 1, 2019, Pinnead Incorporated paid $300,000 for an 80% interest in Shalle Company. Calculate the noncontrolling interest share
|
|
What is the interest rate on the offer
: The Furniture Hut is offering a bedroom suite for $1,999. The credit terms are 60 months at $50 per month. What is the interest rate on this offer?
|
|
Determine what is the cost of the land
: Determine What is the cost of the land? Prepare the entry to record the exchange, assuming the transaction has commercial substance.
|
|
How much income will Angela recognize
: Angela incurred $30,000 of selling expenses. How much income, if any, will Angela recognize from the sale of the apartment
|
|
What is the current year NFO
: Current year's net financial income is $17,059 and current year's net dividends are $14,064, what is the current year's NFO
|