What is Phoenix consolidated retained earnings balance

Assignment Help Accounting Basics
Reference no: EM132781342

Problem - On January 1, 2016, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $624,000 cash At January 1, 2016, Sedona's net assets had a total carrying amount of $436,800. Equipment (eight-year remaining life) was undervalued on Sedona's financial records by $116,000. Any remaining excess fair over book value was attributed to a customer list developed by Sedona (four-year remaining life), but not recorded on its books. Phoenix applies the equity method to account for its investment in Sedona. Each year since the acquisition, Sedona has declared a $13,000 dividend. Sedona recorded net income of $102,000 in 2016 and $118,200 in 2017.

Selected account balances from the two companies' individual records were as follows:

 

Phoenix

Sedona

2018 Revenues

$639,000

$341,200

2018 Expenses

439,000

241,000

2018 Income from Sedona

67,900

 

Retained earnings 12/31/18

333,900

229,700

Required - What is Phoenix's consolidated retained earnings balance at December 31, 2018?

Reference no: EM132781342

Questions Cloud

What are the transactions normally debited and credited : What are the transactions normally debited and credited to the partner's capital account? 13. What are the transactions normally debited and credited
Why do profit agreements provide for salary allowances : Explain Why is interest on partner's capital allowed in the distribution of profit ? Is it allowed even if the operations resulted to a loss?
Construct a linear programming model for Company : Construct a linear programming model for Company Trot in this game - Solve the game for Trot using the linear programming model and the code
Does an industrial partner share in losses always : If there is an agreement as to the distribution of profits only, how will losses be divided? Does an industrial partner share in losses always? Explain.
What is Phoenix consolidated retained earnings balance : Each year since the acquisition, Sedona has declared a $13,000 dividend. What is Phoenix's consolidated retained earnings balance at December 31, 2018
What will be the basis for the distribution of profits : If there is no partnership agreement as to the division of profits and losses, what will be the basis for the distribution of profits or losses?
Compute the cost of each machine : Compute the cost of each machine. At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated
What the par value per share of common stock will equal : Halseth Corporation has 100,000 shares of $12 par value common stock. If the firm declares a 4 for 1 stock split, the par value per share of common stock will
How many inches of raw materials should be purchased : The raw materials cost $3.50 per inch. How many inches of raw materials should be purchased in November

Reviews

Write a Review

Accounting Basics Questions & Answers

  Point company uses the standard costing method the companys

point company uses the standard costing method. the companys main product is a fine-quality audio speaker that normally

  How could park avoid a negative translation adjustment

How could Park avoid a negative translation adjustment reported in other comprehensive income? Did the change in rate impact the figures consistently?

  Does the warranty cost estimate appear accurate

Accounting for Warranty Liabilities Hugo Watch Company, based in Livingston, Montana, sold $10,000 of watches in January under a six month warranty.

  Axillar beauty products corporation is considering the

axillar beauty products corporation is considering the production of a new conditioning shampoo that will require the

  Please create a statement of comprehensive income

Please create a Statement of Comprehensive Income annd Owners Equity Statement using the following information (North American Method).

  Describe the four leadership approaches and how they differ

In at least one paragraph, and in your own words, describe the four leadership approaches and how they differ. Provide one example of each style

  What amount of gain would be recaptured

What amount of gain would be recaptured under Section 1245 (Gain from Dispositions of Certain Depreciable Property)

  Assume that flip uses a periodic inventory system and that

question 3 suggested time 15 minutes 15 pointsthe following information is available for flip companybeginning

  Determining asset impairment loss

General Optic Corporation operates a manufacturing plant in Arizona. Due to a significant decline in demand for the product manufactured at the Arizona site-Determine the amount of impairment loss

  Why is piecemeal opinion prohibited from being issued

Why might an auditor decide to disclaim? How do materiality and pervasiveness aid as a decision guide for determining the type of opinion to be expressed?

  Demonstrate the cost per equivalent unit of conversion

Demonstrate the cost per equivalent unit of conversion for the month of March. Dorchester uses the weighted-average process costing method.

  What would be the impact of IFRS adoption on US companies

In your opinion, what would be the impact of IFRS adoption on U.S. companies

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