Reference no: EM131957756
Problem
Phillips Company purchased a 90% interest in Standards Corporation for $2,340,000 on January 1, 2016. Standards Corporation had $1,650,000 of common stock and $1,050,000 of retained earnings on that date.
The following values were determined for Standards Corporation on the date of purchase:
Book Value Fair Value
Inventory $240,000 $300,000
Land 2,400,000 2,700,000
Equipment 1,620,000 1,800,000
Required:
A. Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements work paper.
B. Prepare the January 1, 2016, work paper entries to eliminate the investment account and allocate the difference between implied and book value.
|
Calculate the price differential for this company
: Investors have invested $20,000 in common equity in a company. The investors expect that the company will reinvest all income back into projects.
|
|
Give the entry to record the redemption
: Phillip Corporation has the following account balances:Bonds payable, exist1,600,000:Premium on Bonds payable. Give the entry to record the redemption.
|
|
Briefly explain the rights of delegation and the potential
: Briefly explain the Rights of Delegation and the potential error(s) that can occur with each when delegating a task.
|
|
What is the net present value of this project
: The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500.
|
|
Prepare a computation and allocation schedule
: Prepare a computation and allocation schedule for the difference between the implied and book value in the consolidated statements work paper.
|
|
Systems to maintain homeostasis
: How does the reproductive system work with other systems to maintain homeostasis? Provide at least one example of what occurs if homeostasis is not maintained.
|
|
State the potential treatments
: State the potential treatments for the infection and explain briefly how these treatments work.
|
|
Calculate the price-earnings ratio
: Phelps, Inc. had assets of $128,522, liabilities of $26,590. Calculate EPS for 2016. Calculate ROE for 2016. Calculate the Price/Earnings Ratio for 2016.
|
|
Locations of bamhi and hindiii restriction sites
: Ligation of the 784-bp fragment, 3755-bp fragment, the 1875-bp fragment, and the 2332-bp fragment produces a "double plasmid
|