User Account

All Pages

Prepare consolidation working paper and eliminating entry

Assignment Help Financial Accounting
Reference no: EM132487349

Point 1: Potash Corporation acquired the voting stock of Safestyle Company on January 1, 2019 for $50 million. Safestyle's book value at the time was $10 million, consisting of $2 million of capital stock and $8 million of retained earnings. The $40 million difference between fair and book value was attributed to goodwill. It is now December 31, 2020, the end of the accounting year and two years after the acquisition. Safestyle's January 1, 2020 retained earnings balance is $11 million, and it reports net income of $1.8 million for 2020. Safestyle declares no dividends and has no other comprehensive income. Goodwill from the acquisition was impaired by $1 million in 2019 and $500,000 in 2020. Potash uses the complete equity method to report its investment in Safestyle on its own books.

Question 1: On the December 31, 2020 consolidation working paper, eliminating entry (E) credits the Investment in Safestyle account by:

Option A. $ 8,000,000

Option B. $11,000,000

Option C. $ 9,300,000

Option D. $13,000,000

Reference no: EM132487349

Questions Cloud

Fair trade-shopping and eating locally : Which of the following four responses to globalization do you think is the most effective and why: Fair Trade, Shopping and eating locally
MMBB08 Finance and Accounting for Decision makers Assignment : MMBB08 Finance and Accounting for Decision makers Assignment help and solution - Critically evaluate key concept of finance and accounting theoretical approach
What is the amount of outstanding checks at the end of June : In May, $50,000 of these checks were presented to the bank for payment, and $66,000 in June. What is the amount of outstanding checks at the end of June
Acceptance or more rejection of hispanics in the us : Experts estimate that white Americans of European ancestry will soon be outnumbered by minorities, especially Hispanic minorities. How will this affect the US?
Prepare consolidation working paper and eliminating entry : On the December 31, 2020 Prepare consolidation working paper, eliminating entry (E) credits the Investment in Safestyle account by
What are the key features of direct and explicit instruction : What are the key features of direct and explicit instruction? Why are these features so vital for the instruction of students with learning or reading.
Problem of sexual inequality in the united states : Will there ever be complete equality between males and females in the United States? Should there be? What would constitute complete equality?
Prepare journal entry to record bonds issuance : On January 1, a company issues $300,000 face value, 8%, 5 year bonds that pay semiannually on June. Prepare journal entry to record bonds issuance
Explain the physical setup of books in your future classroom : Explain the physical setup of books in your future classroom. How will you categorize books? How will students know which books to select?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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