User Account

All Pages

How much would the adjustment to investment income be

Assignment Help Accounting Basics
Reference no: EM133109091

Question - On 1/1/22 Big Co acquired 70% of Little Co voting stock for $350,000; the fair value of the non-controlling interest was $150,000 on that date.

Little's book value on that date was $350,000.  Little had the following misvalued/unreported assets and liabilities:

Land: Undervalued by $7,000

Inventory, FIFO basis: Undervalued by $15,000

Bonds payable, 5 year life: Undervalued by $10,000

In 2022 Little reported earnings of $50,000 and paid dividends of $10,000

Required -

1) How much goodwill would be recorded in the consolidation entries?

2) In the EQUITY METHOD ENTRIES, how much would the adjustment to investment income be for the amortization of the inventory differential?

3) In the ELIMINATION ENTRIES, how much would be the amortization associated with the inventory differential?

4) What is the "Income to the NC Interest" in 2022?

Reference no: EM133109091

Questions Cloud

Explanation of which servant leadership principles : Explanation of which servant leadership principles you recognize as most valuable and would consider integrating within your own organization.
What is the net income for the quarter ended September : Of this amount, P120,000 was allocated to the third quarter of 2020. What is the net income for the quarter ended September 30, 2020
What is the minimum amount of sales to a major customer : The combined assets of all segments at year-end totaled P55,000,000. What is the minimum amount of sales to a major customer
Communications management on projects : This unit's learning activity examines Communications Management on Projects.
How much would the adjustment to investment income be : In the EQUITY METHOD ENTRIES, how much would the adjustment to investment income be for the amortization of the inventory differential
John holland personality-job fit theory : Discuss John Holland's personality-job fit theory. identified by the Hofstede's framework for assessing cultures.
Prepare the cost of ending work in process : FIFO Method, Two-Department Analysis - Muskoge Company uses a process costing system. Prepare the cost of ending work in process
What is the null and alternative hypothesis : No, 1. What is the null and alternative hypothesis? No 2. What tests are used to determine statistical significance?
Appropriateness and effectiveness of the training : If training is provided the effectiveness of the training should be evaluated. Give four reasons to support this statement and explain in 100 words how the appr

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the? firm net working? capital

If? Caraway's current liabilities consist of $21,600 in accounts payable and $9,000 in? short-term debt? (notes payable), what is the? firm net working? capital

  Record the journal entry that would be necessary

Record the journal entry that would be necessary for each of the following situations. (a) Cash to be accounted for exceeds cash on hand by $50.50

  What is the amount of their savers credit

They each make a $1600 contribution to their respective IRAs. Assuming that they are not eligible for any other credits what is amount of their Savers credit

  Can Leisel use all of this loss to offset other income

The use of immediate expense and additional first-year depreciation to deduct all of the acquisitions. Can Leisel use all of this loss to offset other income

  Determine the office costs allocated

Office costs of $216,000 are allocated to operating departments based on the number of employees. Determine the office costs allocated

  Compare the population means

Carry out a two-sample t test to compare the population means. What  assumptions are required for this to be a valid test? At the α = 0.05 signi?cance level, what does this result imply about the null hypothesis?

  Why does a business depreciate?

Why does a business depreciate?

  Percentage increase in real gdp

Explain the difference between the total percentage increase in real GDP between 2003 and 2013 and the average annual growth rate in real GDP between the same years.

  What amount is the investment income for the current year

The investee reported that the net income is $4,000,000 and paid $1,000,000 dividends during the current year. What amount is the investment income

  Calculate the membership fee revenue

During fiscal 2016, Flex Fitness collected $1,119,833 cash for membership fees. Calculate the membership fee revenue that Flex Fitness recognized

  How much child and dependent care credit can Mary claim

Mary and John are married and have AGI of $100,000 and two young children. How much child and dependent care credit can Mary claim

  Activities of sam club company for the first quarter

Activities of Sam Club Company for the first quarter of the current yea

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