Calculate the split of consolidated income

Assignment Help Financial Accounting

Reference no: EM133560680

Question: It is now the end of 2018. Use the information below and the table provided to help Modern Witch prepare the consolidated income statement. You do not need to calculate the split of consolidated income between parent and NCI, you only need to complete the table below and show supporting calculations. All the information from Part One of this question is still applicable.
- In 2017 Modern Witch sold Ravenclaw inventory with an original cost of $10,000 at the usual markup. Ravenclaw sold 40% of the inventory in 2017 and another 40% in 2018.
- In 2018 Ravenclaw sold Modern Witch inventory for a price of $20,000 and an old truck for $2000. All of the inventory and the truck remained in the possession of Modern Witch at the end of 2018.
- The truck had an original cost of $20,000 and was fully depreciated at the time of sale. Modern Witch bought it at the beginning of 2018 with the intention to use it for 2 years.
- In 2018, the impairment testing process resulted in a write-down of the goodwill by $5000.
- As they do every year, Modern Witch still charged Ravenclaw their annual management fee, which they booked to "other revenues". This fee has not changed since acquisition.

Reference no: EM133560680

Questions Cloud

Explain the rise of the cotton revolution : Explain the rise of the Cotton Revolution. How did cotton replace tobacco as the dominant crop in the South in the decades leading up to the Civil War?

What would your icebreaker be for the team of 15 department : What would your icebreaker be for the team of 15 department heads and how would you manage the meeting?

What you believe you learned about the interviewing process : describe in detail what you believe you learned about the interviewing process." Excerpt From Umiker's Management Skills for the New health Care supervisor

What benefit did the newspaper owners gain from the war : What benefit did the newspaper owners gain from the war? How has journalism evolved since the Spanish-American War?

Calculate the split of consolidated income : Witch still charged Ravenclaw their annual management fee, which they booked to "other revenues". This fee has not changed since acquisition

What did the end of reconstruction mean : What was significant about the 1876 election? What did the end of Reconstruction mean?

How did world war i affect race relations in the us : How did World War I affect race relations in the United States during and after the war? Were you surprised by the treatment African American soldiers received?

Describe the two most significant risks : Describe the two most significant risks associated with your recommendation from a cost accounting perspective

Purchasing a new injection molding machine : Purchasing a new injection molding machine. This machine will have an estimated service life of 9 years with a negligible salvage value

User Account

All Pages