Reference no: EM132543578
Plover Corporation acquired 80% of Sink Inc. equity on January 1, 2013, when the book values of Sink's assets and liabilities were equal to their fair values. The cost of the investment was equal to 80% of the book value of Sink's net assets.
Plover separate income (excluding Sink) was $1,800,000, $1,700,000 and $1,900,000 in 2013, 2014 and 2015 respectively. Plover sold inventory to Sink during 2013 at a gross profit of $48,000 and one quarter remained at Sink at the end of the year. The remaining 25 percent was sold in 2014. At the end of 2014, Plover has $25,000 of inventory received from Sink from a sale of $100,000 which cost Sink $80,000. There are no unrealized profits in the inventory of Plover or Sink at the end of 2015. Plover uses the equity method in its separate books.
Select financial information for Sink follows:
2013 2014 2015
Sales 790,000 840,000 940,000
CGS (420,000) (440,000) (500,000)
Gross profit 370,000 400,000 440,000
operationg income (300,000) (320,000) (350,000)
Net income 70,000 80,000 90,000
Question 1: Make a required schedule to determine the controlling interest share of the consolidated net income for 2013, 2014, and 2015.
|
Excellence in tangibles,
: Some companies have traditionally been known for their excellence in tangibles, e.g., Xerox in copiers, IBM in computers,
|
|
How much is the depletion charge
: In 20x5, after extracting 5,000,000 units, it was estimated that the remaining recoverable reserves is 20,000,000 units. How much is the depletion charge
|
|
Find what is the intrinsic value of rrv common stock
: What is the intrinsic value of RRV's common stock? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box.
|
|
Compute the correct final balance of inventory
: Inventory items with a cost of $2,500 were included in ending inventory. Compute the correct final balance of Inventory
|
|
Determine the controlling interest share of the consolidated
: Make a required schedule to determine the controlling interest share of the consolidated net income for 2013, 2014, and 2015.
|
|
Primary concern was protecting your personal assets
: Which type of business entity would you choose if your primary concern was protecting your personal assets? Explain.
|
|
Describing the role of nonverbal communications
: Write a journal entry in narrative style describing the role of nonverbal communications in your workplace.
|
|
What is the rationale behind the pi method
: WHAT IS THE RATIONALE BEHIND THE PI METHOD ACCORDING TO PROFITABILITY INDEX, WHICH PROJECT SHOULD BE ACCEPTABLE
|
|
What income tax deductions can william claim
: Calculate Ray's Taxable Income for the year ended 30 June 2019 and What is the objective of the Dividend Imputation System and how does it achieve
|