Reference no: EM13916914
On January 1, 2014, Powers Company acquired 80% of the common stock of Sculley Company for $280,000. On this date Sculley had total owners' equity of $200,000 (common stock, other paid-in capital, and retained earnings of $10,000, $90,000, and $100,000 respectively).
All book values of all identifiable assets and liabilities of Sculley were equal to their fair values except:
-Manufacturing equipment (depreciation expense goes to CGS) was undervalued by $45,000. The equipment has a remaining life of five years and straight-line depreciation is used.
-Patents worth 20,000 were not recorded. The excess to the patents is to be amortized over 20 years.
On January 1, 2015, Powers held merchandise acquired from Sculley for $10,000. During 2015, Sculley sold merchandise to Powers for $50,000, $30,000 of which is still held by Powers on December 31, 2015. Sculley's usual gross profit on affiliated sales is 50%. As of December 31, 2015, Powers owed $10,000 to Sculley for merchandise purchased during 2015.
On December 31, 2014, Powers sold an administrative building (depreciation expense goes to operating expense) to Sculley at a gain of $10,000. During 2015, the building was used by Sculley. Depreciation is being computed using the straight-line method, a five-year life, and no salvage value.
Both companies have a calendar-year fiscal year.
Assume that during 2014 and 2015, Powers has appropriately accounted for its investment in Sculley using the equity method.
Complete the Excel consolidating spreadsheet for 2015 (the second year the subsidiary has been owned). I have a template i do not know how to attach it.
|
Prepare report where audience is stakeholders of clients
: Prepare a report where the audience is the stakeholders of the clients' organizations. This input will be compared with that of other project managers.
|
|
What is being informally tested here
: The Kenton Food Company is interested in testing which size of a new organic, whole-grain breakfast cereal is most appealing to consumers. What is being informally tested here, and what is the hypothesis test
|
|
An industrial cleaning supply organization
: You are a sales manager in an industrial cleaning supply organization. Over the past three months the sales in your department have declined significantly. In a one to two page memo to your boss, suggest a problem-solving process you would recommen..
|
|
An effective decision maker
: Reflect on someone you know, perhaps a manager or a leader, who you believe is an effective decision maker. What are some of the characteristics this person displays? What is the specific decision-making model this person appears to use? What have yo..
|
|
No salvage value
: On December 31, 2014, Powers sold an administrative building (depreciation expense goes to operating expense) to Sculley at a gain of $10,000. During 2015, the building was used by Sculley. Depreciation is being computed using the straight-line metho..
|
|
Response theory analysis of spiritual assessment inventory
: Research: An item response theory analysis of the Spiritual Assessment Inventory. International Journal for the Psychology of Religion, 17(2), 157-178. Write in Third Person Scholarly writing: No quotes from Authors. Let your voice be heard and no..
|
|
Information on the regression model
: That file provides you with information on the regression model used to explain and predict the cost of claims for the insurance company. Please the following questions:1. Can this model be used for studying the cost of claim? (why?) 2. How well do..
|
|
Which is more effective-verbal or nonverbal signals
: Which is more effective-verbal or nonverbal signals? What conclusion could you draw from this demonstration? Do you think that nonverbal signals are always more meaningful than verbal ones?
|
|
Study shows the data for the delay of gratification
: This study investigated the cognitive effects of stimulant medication in children with mental retardation and Attention-Deficit/Hyperactivity Disorder. This case study shows the data for the Delay of Gratification (DOG) task. Children were given v..
|