Calculations or explanations for each elimination entries

Assignment Help Accounting Basics
Reference no: EM131782100

5-8 Pruitt Corporation acquired all of the voting stock of Soto Corporation on January 1, 2010, for $210,000 when Soto had common stock of $150,000 and retained earnings of $24,000. The excess of implied over book value was allocated $9,000 to inventories that were sold in 2010, $12,000 to equipment with a 4-year remaining useful life under the straight-line method, and the remainder to goodwill.

Financial statements for Pruitt and Soto Corporations at the end of the fiscal year ended December 31, 2011 (two years after acquisition), appear in the first two columns of the partially completed consolidated statements workpaper. Pruitt Corp. has accounted for its investment in Soto using the partial equity method of accounting.

It seems like I already have the answer for the question. What I would like to know is whether the attached answer is correct or not and detailed calculations or explanations for each elimination entries it it's correct. Urgently need a help! Thank you very much in advance.

Reference no: EM131782100

Questions Cloud

What makes someone do bad things : What makes someone do "bad" things? This post will highlight the recent case of a juvenile sex offender.
Explain dispute resolution options available to bobbie sue : Briefly explain the dispute resolution options available to Bobbie Sue and Billy Bob to avoid litigation, and the primary benefits of each option.
Define the coefficient of viscous damping : Use a lumped-parameter model and the analytical transfer function approach to calculate the frequency-domain response of the mechanical microsystem sketched.
Considered when developing product strategies : What are three things which need to be considered when developing product strategies?
Calculations or explanations for each elimination entries : What I would like to know is whether the attached answer is correct or not and detailed calculations or explanations for each elimination entries
Determine the total compensation cost : Corporation provides an executive stock option plan. Determine the total compensation cost pertaining to the options
Three attributes of leader who can successfully : Using the Graham-Leviss article and Burgelman Working Paper as a starting point, what do you feel are the top three attributes of a leader who can successfully
Calculate your targets times-interest-earned ratio : Calculate your Target's times-interest-earned ratio for the fiscal year end 01/30/16. How does this ratio compare to the ratio for the Kohl's Corporation?
Briefly summarize the pattern in your results : Briefly summarize the pattern in your results. Did you follow the expected pattern? If not, why do you think that is so?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd