Snoopy co sold equipment to peanut co for a 42000 gain on

Assignment Help Accounting Basics

Reference no: EM13571024

Peanut Company acquired 75 percent of Snoopy Company's stock at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snoopy Company. Snoopy Company reported shares outstanding of $350,000 and retained earnings of $100,000. During 20X8, Snoopy Company reported net income of $60,000 and paid dividends of $3,000. In 20X9, Snoopy Company reported net income of $90,000 and paid dividends of $15,000. The following transactions occurred between Peanut Company and Snoopy Company in 20X8 and 20X9:

Snoopy Co. sold equipment to Peanut Co. for a $42,000 gain on December 31, 20X8. Snoopy Co. had originally purchased the equipment for $140,000 and it had a carrying value of $28,000 on December 31, 20X8. At the time of the purchase, Peanut Co. estimated that the equipment still had a seven-year remaining useful life.

Peanut sold land costing $90,000 to Snoopy Company on June 28, 20X9, for $110,000.

Required:
Give all eliminating entries needed to prepare a consolidation worksheet for 20X9 assuming that Peanut Co. uses the cost method to account for its investment in Snoopy Company.

Reference no: EM13571024

Questions Cloud

Problem buster container company is suffering declining : problem buster container company is suffering declining sales of its principal product nonbiodegradeable plastic

On january 1 20x7 jones company acquired 90 percent of the : on january 1 20x7 jones company acquired 90 percent of the outstanding common stock of smith corporation for 1242000.

The following selected transactions occurred for : the following selected transactions occurred for bleumortier corporation. the company has a march 31 year end and

Eki explain all you konw about the concept of drug : explain all you konw about the concept of drug revolving fund drf in nigeria and how this drug revolving can be

Snoopy co sold equipment to peanut co for a 42000 gain on : peanut company acquired 75 percent of snoopy companys stock at underlying book value on january 1 20x8. at that date

Ssume the real risk-free rate is 3 and inflation is : ssume the real risk-free rate is 3 and inflation is expected to be 2 for the next 3 years. a 3-year security yields

The variable and fixed overhead rates were computed using : nelson co. manufactures a product that requires 3.5 machine hours per unit. the variable and fixed overhead rates were

At the beginning of the current period azim enterprises ltd : at the beginning of the current period azim enterprises ltd. had balances in accounts receivable of 1600000 and in

On august 1 2013 ace corporation accepted a note receivable : on august 1 2013 ace corporation accepted a note receivable in place of an outstanding accounts receivable in the

User Account

All Pages