What are the consolidated retained earnings

Assignment Help Accounting Basics
Reference no: EM132453935

Problem - Smith Inc. acquired all of the common stock that was outstanding of Williams Company on 1/1/15. As a result of this acquisition, there will be annual amortization in the amount of $30,000. Smith reported a retained earnings balance of $400,000, and Williams reported a retained earnings balance of $100,000 on the date of acquisition. In addition, Smith had net income for 2015 in the amount of $75,000 and net income for 2016 in the amount of $70,000. Smith also paid dividends in the amount of $20,000 both in 2015 and 2016. Williams had net income for 2015 in the amount of $25,000 and net income for 2016 in the amount of $30,000. In addition, Williams paid dividends in the amount of $5,000 both in 2015 and 2016.

Required - Assume that Smith includes the Equity in Subsidiary income in their reported net income. If Smith uses the partial equity method for net income, what are the consolidated retained earnings on 12/31/16?

Reference no: EM132453935

Questions Cloud

Prepare a swot analysis for al-ain zoo : Explain why Alain Zoo requires to determine its key success factors? Then, identify four of these factors and Explain the threats a business can pose
Present one theory or model of behavioral change : Present one theory or model of behavioral change which would be effective in a population and/or community? Presentation of the theory or model
Trauma-development and spirituality : Explain in detail, 2 pages, double spaced, Time New Romans. How trauma can affect development, more specifically neural development?
Find the best safety strategies before an earthquake occurs : Find the best safety strategies before, during, and after an earthquake occurs. The strategies can be related to indoor and/or outdoor.
What are the consolidated retained earnings : Smith had net income for 2015 in the amount of $75,000. If Smith uses partial equity method for net income, what the consolidated retained earnings on 12/31/16
Component of the affordable care act : Your reading this week discusses the component of the Affordable Care Act that relates to state expansion of the Medicaid program.
Compare the locking mechanism : Does the material catalyze growth of bacteria?Easy material to manufactor/work with?incase it burns, woudl the fumes harmful?
Workplace violence issues in hospitals : Prepare two paragraphs on what you perceive as vulnerabilitiesin "Workplace Violence" issues in Hospitals based on the Newtown Connecticut
Determine the amount of intra-entity profit at the end : For 20X2, Boswell reported earnings of $90,000 and paid cash dividends of $35,000. Determine the amount of intra-entity profit at the end of 20X2

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the budgeted total variable cost

Each Colby Steak dinner sells for $22.00 each. What is the budgeted total variable cost

  What classifications and amounts are shown in pepsicos

What classifications and amounts are shown in PepsiCo’s Note 4 to explain its total property, plant, and equipment (net) of $11,228 million?

  Prepare a comprehensive business memo

In Question 2, prepare a comprehensive business memo addressing each decision and your recommendation. The memo should be properly formatted as a business memo.

  Statements concerning variance analysis

Evaluate the following statements concerning variance analysis. Be sure to provide specific examples to justify your evaluations.

  Type of technique

Describe why or why not a pure service industry (e.g. accounting or law firms) may or may not be able to implement this type of technique

  The payments of 1 continue forever that annual effective

you are given an annuity immediate paying 22 annually for twenty years. after the twenty years the payments decrease by

  Distinguish between the pairs of terms

Problem: Distinguish between the following pairs of terms in not more than five lines for each pair. You can use examples to describe your answer.

  Soap company issued 200000 of 8 5-year bonds on january 1

soap company issued 200000 of 8 5-year bonds on january 1 20x6. the discount on issuance was 12000. bond interest is

  Contract with the intent of hedging an account payable

A company enters into a futures contract with the intent of hedging an account payable of DM400,000 due on December 31. The contract requires that if the U.S. dollar value of DM400,000 is greater than $200,000 on December 31, the company will be r..

  The accrual basis of accounting

How are revenues and expenses reported on the income statement under (a) The cash basis of accounting and (b) The accrual basis of accounting?

  Prepare a schedule indicating cash collections from sales

PetJoy Wholesale Inc., a pet wholesale supplier, was organized on March 1, 2016. Prepare a schedule indicating cash collections from sales for March

  On january 102012 badger co purchased 30 of the outstanding

on january 102012 badger co. purchased 30 of the outstanding stock of crest co. for 123000 . crest paid total dividend

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd