User Account

All Pages

Determine the Preliminary Computation

Assignment Help Accounting Basics
Reference no: EM132948051

Question - Pongo Company has $2,000,000 of 6% bonds outstanding on December 31, 2013 with unamortized premium of $60,000. These bonds pay interest semiannually on January 1 and July 1 and mature on January 1, 2019. Straight-line amortization is used.

Syring Inc., 90%-owned subsidiary of Pongo, buys $1,000,000 par value of Pongo's outstanding bonds in the market for $980,000 on January 2, 2014. There is only one issue of outstanding bonds of the affiliated companies and they have consolidated financial statements.

For the year 2014, Pongo has income from its separate operations (excluding investment income) of $3,000,000 and Syring reports net income of $200,000. Pongo uses the equity method to account for the investment.

Required -

1. Determine the Preliminary Computation?

2. Determine the Noncontrolling interest share for 2014?

3. Determine the Controlling share of consolidated net income for Pongo Company and subsidiary for 2014?

Reference no: EM132948051

Questions Cloud

Prepare the necessary entry that the moon has : These investments show an unrealized holding loss of $4225 on December 31, 2019. Prepare the necessary entry that the moon has
Bombay stock exchange strategic goals : The Bombay Stock Exchange case study does not refer to any business intelligence maturity stages. If you were engaged as a Consultant on this project, what Busi
Group health insurance and individual health insurance : Compare and contrast group health insurance and individual health insurance. Provide examples to illustrate how these coverage plans are similar and how they ar
How should the nurse discuss the situation with the parents : What do you think the best course of action should be? How should the nurse discuss this situation with the parents and the interdisciplinary health care team?
Determine the Preliminary Computation : Pongo has income from its separate operations (excluding investment income) of $3,000,000. Determine the Preliminary Computation
How does the compare with the biomedical understanding : How might parents from various cultures feel about the cause of this condition? How does this compare with the biomedical understanding?
Prepare the journal entries relating to the plant for year : The tax rate for the company is 28%. Prepare the journal entries relating to the plant for the year ended 31 December 2012
Explain what steps will take to minimize the potential risks : What steps will you take to minimize the potential risks? What possible sources of physical and mental harm to the participants be minimized?
How can the registered nurse improve communication : How can the Registered Nurse improve communication to the interprofessional team? Why is communication important in interprofessional working?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare a differential analysis

Prepare a differential analysis, dated January 3, 2014, to determine whether Inman should lease (Alternative 1) or sell (Alternative 2) the machinery

  Find auditors responsibility for events occurring subsequent

Completion of fieldwork but before issuance of the auditors' report, the auditors' responsibility for events occurring subsequent to the date of audit repory

  Bond journal entries

Crow Co. issued 493,000 of 10%, 20 yr. bonds on Jan, 1, 2010, at face value. Interest is payable annually on Jan. 1. Prepare journal entries to record the last of the following events:

  What notification accompanying a check

What notification accompanying a check that indicates the specific invoice being paid is called a? When preparing a bank reconciliation, deposits in transit are

  What can be regarded as well-prepared financial statements

Well-prepared financial statements, What can be regarded as 'well-prepared financial statements' from the perspective of accounting.

  Effects of changes in foreign exchange rates

Effects of Changes in Foreign Exchange Rates compare and contrast between the two translation methods (a) temporal method exchange rate and (b) current rate

  Memo about time tickets and expense tickets

Prepare a 250- to 300-word memo about time tickets and expense tickets. Include an explanation about what each is used for, how the two are different, and what information may be found on each.

  Determining the felts gross profit

The beginning inventory (Jan. 1, 2010) was $170,000; in the past Felt's gross profit has averaged 40% of selling price.

  Record the journal entries for both company z and company a

Record the journal entries for both Company Z and Company A if the sale was on a (1) without recourse basis and again on a (2) with recourse basis

  Identify the benefits of a shareholders agreement

Identify the benefits of a shareholders' agreement, and the standard contents of a shareholders' agreement

  Compare the tax consequences to the shareholder and the

compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of

  How should Santos determine the interest income

How should Santos determine the interest income for 2020 on the (1) Interest-bearing note receivable? Why? (2) Non-interest-bearing note receivable? Why

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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