Reference no: EM131211646
Prime Company acquired 85% of the common stock of Second Company on January 1, year one, for $510,000 The consideration given was proportional to Second's fair value. On that date, Second had the following trial balance:
account debit credit
Additional paid in capital 100,000
Building (12-year life) 250,000
Common stock 170,000
Current assets 170,000
Equipment (6-yr life) 160,000
Land 110,000
Liabilities (due in 4 years) 300,000
Retained earnings 1/year 1 120,000
Totals 690,000 690,000
During year one, Second reported net income of $60,000. During year one, Sonny paid dividends of $30,000
During year two, Second reported net income of $80,000. During year two, Sonny paid dividends of $40,000
On January 1, year one, fair values were:
Land $122,000
Building $262,000
There was no impairment of any goodwill arising from the acquisition.
1. Please indicate clearly which method you choose for Prime to use to account for its acquisition of Second Company.
2. Use the data for the Prime Company acquisition of the Second Company to prepare the consolidation worksheet entries for the December 31, year one, worksheet.
3. Use the data for the Prime Company acquisition of the Second Company to prepare the consolidation worksheet entries for the December 31, year two, worksheet.
Equipment $196,000
|
How much additional tax they will personally pay
: June and John decide to form a business. They each plan to contribute 20,000 in exchange for a 50percent interest in the business. They will then take out a bank loan for 30,000 to cover the balance of their working capital needs. They want to know h..
|
|
Calculate the own price elasticity
: The demand for good X has been estimated by QXd =12 - 3PX + 4PY. Suppose that good X sells at $2 per unit and good Y sells for $1 per unit. Calculate the own price elasticity when the price of X increases to $3.
|
|
Compare australia and china growth rates
: 1) Compare Australia and China growth rates over the period of last ten years (2005 - 2015) in about 300 words 2) Critically analyze the reasons for the variation of growth rates in each country over that time period about 1200 words e.g. mining bo..
|
|
Journalize the declaration and payment of the cash dividend
: PotteryPottery ?Schools, Inc. is authorized to issue? 200,000 shares of ?$2 par common stock. The company issued 76,000 shares at $4 per share. When the market price of common stock was $6 per? share, PotteryPottery declared and distributed a 10?% st..
|
|
Proportional to seconds fair value
: Prime Company acquired 85% of the common stock of Second Company on January 1, year one, for $510,000 The consideration given was proportional to Second's fair value. On that date, Second had the following trial balance: Please indicate clearly which..
|
|
Total monetary unit in the context of economics
: What is the definition of total monetary unit in the context of economics.
|
|
Graph the demand and supply curves
: Answer the following questions and provide explanations as required. 1. Using the information below on the market demand and supply for compact disks, graph the demand and supply curves and answer the questions below.
|
|
Determine the frequency of the periodic component
: Find the Fourier transforms of each and sketch. With the information of part (a) and the Fourier transforms justify that each is suitable for an autocorrelation function.
|
|
Find and sketch the power spectral density of the output
: What is the power of the output process? Find it two different ways
|