User Account

All Pages

What is the amount of the consolidated retained earnings

Assignment Help Financial Accounting
Reference no: EM132846091

Question - Poly-Ester Ltd. acquired an 85% interest in Silk Company on December 31, 2019 for $782,000. On that date, Silk had common shares of $500,000 and retained earnings of $100,000. The carrying amounts of Silk's net assets were equal to fair value except for inventory which had a fair value of $70,000 greater than its carrying value. The balance of the acquisition differential was allocated to a patent. The patent had a remaining useful life of 10 years on this date. There was no goodwill acquired by Poly-Ester in the business combination.

Silk reported net income of $30,000 in 2020 and $52,000 in 2021. Silk declared a dividend in 2021 for $15,000.

Poly-Ester uses the cost method to record its investment in Silk. Poly-Ester reported net income of $28,000 in 2020 and a loss of $45,000 in 2021. Poly-Ester's retained earnings on December 31, 2021, were $91,000.

There were numerous intercompany transactions between Poly-Ester and Silk. As of December 31, 2021, Silk owed Poly-Ester $42,000.

Both corporations have a December 31 year end.

Required -

1. What is the value of the non-controlling interest on December 31, 2019?

2. What is the amount of the unamortized AD as of December 31, 2021?

3. What is the amount of the consolidated net income (loss) attributable to the parent in 2021?

4. What is the amount of the consolidated retained earnings as at December 31, 2021?

5. If Poly-Ester had used the equity method to record, what is the balance of Investment in Silk as of December 31, 2021?

Reference no: EM132846091

Questions Cloud

What entry would squirt make on its books : The common shares trade actively at $50 per common share. What entry would Squirt make on its books to record the transaction
Provide a concise overview of the topic : The topic you choose needs to be focused so that you can provide a concise overview of the topic and recommendations in the length allotted.
Calculate the number of units to be produced in each month : It is currently estimated that there will be 3,906 units on hand at the end of June. Calculate the number of units to be produced in each of the months
Where do expect to be five years from now : Why should we hire you when we have applicants with more experience? Where do you expect to be five years from now? Describe a time that you worked successfully
What is the amount of the consolidated retained earnings : Silk reported net income of $30,000 in 2020 and $52,000 in 2021. What is the amount of the consolidated retained earnings as at December 31, 2021
What lacked was lack of confidence in growing organization : What lacked was the lack of confidence in growing the organization. A strategy that might improve the organizational climate return the organization to optimal
Analyze characteristics and behaviors of effective managers : One of the primary roles of a manager is to plan. Are you a natural planner? What makes a good planner? What goes into creating a solid plan
Prepare monthly summary of cash payments : Monthly material purchases are set equal to 20 percent of forecasted sales for the next month. Prepare monthly summary of cash payments
What could be done to increase the likelihood of transfer : What could be done to increase the likelihood of transfer of training if the work environment conditions are unfavorable and cannot be changed?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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