Consolidated balance sheet for current assets

Assignment Help Financial Accounting

Reference no: EM131258166

Candy Co. had the following transactions with affiliated parties during Year 20x1: sales of $60,000 to Denver Inc., with $20,000 gross profit. Denver had $15,000 of inventory on hand at year-end. Candy owns a 15% interest in Denver and does not exert significant influence. Secondly, there were purchases of raw materials totaling $240,000 from Kiwi Corp., a wholly owned subsidiary. Kiwi's gross profit on the sale was $48,000. Candy had $60,000 of this inventory remaining on December 31, 20x1. Before eliminating entries, Candy had consolidated current assets of $320,000. Which amount should Candy report in its December 31, 20x1, consolidated balance sheet for current assets?

a $320,000

b $317,000

c $308,000

d $303,000

Reference no: EM131258166

Questions Cloud

Capital account immediately after the business combination : Mighty Inc. was organized to consolidate the resources of Little Co. and Sam Co. in a business combination accounted for by the acquisition method. Mighty issued 31,000 shares of its $10 par voting stock with a fair value of $15 per share, in exchang..

Ability to exercise significant influence over operations : Jackson Company owns 23% of the voting common stock of Knit Corp. Jackson does not have the ability to exercise significant influence over the operations of Knit. What method should Jackson use to account for its investment in Knit Corp.? Explain why..

What is tanyas basis : On 9/30/16 Tanya received a 92-acre farm form her brother's estate. The farm was distributed to Tanya on 9/30/16. The farm cost her brother $184,000 and had a FMV at date of death of $8,214 per acre, but had a remaining mortgage of $96,300 that Tanya..

Delivers each paycheck to the appropriate employee : BIGBUCKS has five departments, each with a supervisor. The supervisor of each department triggers (initiates) the payroll process. Each department supervisor totals the hours for each employee. He notes these totals on a summary employee timesheet. T..

Consolidated balance sheet for current assets : Candy Co. had the following transactions with affiliated parties during Year 20x1: sales of $60,000 to Denver Inc., with $20,000 gross profit. Denver had $15,000 of inventory on hand at year-end. Candy owns a 15% interest in Denver and does not exert..

What would be the book value of the asset : On January 1, 2014, Ballard Company spent $12,000 on an asset to improve its quality. The asset had been purchased on January 1, 2009 for $38,000. The asset had a $6,800 salvage value and a 6-year life. Ballard uses straight-line depreciation. What w..

Company used the straight-line depreciation method : Furst Company purchased equipment on January 1, 2012 for $46,000. The equipment is estimated to have a 5-year life and a salvage value of $3,000. The company used the straight-line depreciation method. At the beginning of 2015, Furst revised the expe..

The cost recorded for the machine : On March 1, Bunker Hill Company purchased a new stamping machine with a list price of $70,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $1,300;..

Assuming the business maintains perpetual inventory system : Beginning inventory, purchases, and sales data for tennis rackets are as follows: April 3 Inventory 12 units @ $17.00 11 Purchase 10 units @ $19.00 14 Sale 16 units 21 Purchase 21 units @ $20.00 25 Sale 10 units Assuming the business maintains a perp..

User Account

All Pages