What is consolidated net income for sedona and phoenix

Assignment Help Financial Accounting

Reference no: EM133264

Question :

On 1^st January, 2011, Phoenix Co. acquired 100 % of the outstanding voting shares of Sedona, Inc. for $600,000 cash. At 1^st January, 2011, Sedona's net assets had entire carrying amount of $420,000. Equipment (eight-year remaining life) was undervalued on Sedona's financial records by $80,000. Any outstanding excess fair over book value was attributed to a customer list prepared by Sedona (four-year remaining life), but not recorded on its books. Phoenix applies the equity technique to account for its investment in Sedona. Every year since the acquisition, Sedona has paid a $20,000 dividend. Sedona recorded income of $70,000 in 2011 and $80,000 in 2012.

Chosen account balances from the two companies' individual records were as given:

Phoenix Sedona

2013 Revenues $498,000 $285,000

2013 Expenses 350,000 195,000

2013 Income from Sedona 55,000

Retained earnings 12/31/13 250,000 175,000

What is consolidated net income for Sedona and Phoenix for 2013?

Reference no: EM133264

Questions Cloud

Evaluate the total unit cost of each product line : Evaluate the total unit cost of each product line in a refined state.

Analyze the accounting needs for the business combination : Analyze the accounting needs for the business combination technique you selected. Prepare related financial statements for the date of acquisition.

Star life cycle model : interface design proces, Star Life Cycle as a model for interface Design, Nielsen's usability principles, Shneiderman's eight golden rules

Evaluated the given variances for materials : Evaluated the given variances for materials quantity variances and price.

What is consolidated net income for sedona and phoenix : What is consolidated net income for Sedona and Phoenix for 2013

Prepare a business valuation using the market value method : Prepare a business valuation for 2013 using the market value technique, the book value method, and the multiples-based techniques.

To accrue rent recognized but not yet received : By accessing this problem Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.

Views and references six different data sources : Three input screens, each of which has two views and references six different data sources One output report that has four sections and references eight data sources

Prepare the project worthwhile in terms of his own time : To prepare the project worthwhile in terms of his own time, Marbury would need a $7,200 profit for the first six months of the venture. What level of sales in units and dollars would be needed to attain this target net operating income?

User Account

All Pages