User Account

All Pages

What is the consolidated net income for 2013

Assignment Help Accounting Basics
Reference no: EM13127186

On January 1, 2013, Slaughter sold equipment to Bennett (a wholly owned subsidiary) for $120,000 in cash. The equipment had originally cost $100,000 but had a book value of only $70,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense is computed using the straight-line method.

Slaughter earned $220,000 in net income in 2013 (not including any investment income) while Bennett reported $90,000. Slaughter attributed any excess acquisition-date fair value to Bennett's unpatented technology, which was amortized at a rate of $8,000 per year.

a. What is the consolidated net income for 2013?

b. What is the parent's share of consolidated net income for 2013 if Slaughter owns only 90 percent of Bennett?

c. What is the parent's share of consolidated net income for 2013 if Slaughter owns only 90 percent of Bennett and the equipment transfer was upstream?

Reference no: EM13127186

Questions Cloud

Historical cost of the generators : The company estimates that the non-guaranteed residual values on generators are equal to an average of 10 percent of the historical cost of the generators. Finance Here Sales & Service can expect that:
Calculate the partial pressure of the gases : A mixture of gases contains 0.290 mol CH4, 0.240 mol C2H6, and 0.300 mol C3H8. The total pressure is 1.40 atm. Calculate the partial pressure of the gases.
What are the advantages to normalization : What is data redundancy? We know that the normalization breaks up large tables into smaller more manageable tables.
Find range-mean price and standard deviation of gasoline : The prices recorded were $1.36, $1.37, $1.38, $1.39, and $1.40. What is the range, mean price, and the standard deviation of the gasoline?
What is the consolidated net income for 2013 : Slaughter earned $220,000 in net income in 2013 (not including any investment income) while Bennett reported $90,000. Slaughter attributed any excess acquisition-date fair value to Bennett's unpatented technology, which was amortized at a rate of ..
Incremental borrowing rate : Five equal payments of $10,000 per year are required by the term of the lease, with the first payment due upon signing. Quattro's incremental borrowing rate is 8%, but its implicit interest rate is unknown.
Visual displays : 1. Identify the source and audience of the selected Website or print medium. Describe how its format and visual displays are used to appeal to a viewer's interest and willingness to engage with the source.
What is the kb of the weak base : Titration of 15mL of 0.125M unknown base with 0.103M HCl required 18.2mL to reach the equivalence point. the pH at the equivalence point was 2.74.
Confidence interval for average age of students in statistic : Their average age was 19.1 years with a standard deviation of 1.5 years. What is the 95% confidence interval for the population mean?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Depreciation deductions-accelerated depreciation

In November 2011, Kendall purchases a computer for $4,000. She does not use Sec. 179. She only uses the most accelerated depreciation method possible.

  Variable costing-absorption costing

You are the vice president of operations for a small manufacturing company that uses the absorptive method of accounting for fixed manufacturing overhead, and you are approaching the end of the year.

  Temporary permanent differences-deferred

Prepare schedule to reconcile accounting and taxable income and to compute taxes payable. Prepare a schedule of temporary differences and deferred income taxes. Prepare Journal entry for each year. Show how income tax expenses, deferred income tax as..

  Internal controls-payroll cycle

Please provide an explanation of the strengths and weaknesses of the internal controls related to the payroll cycle.

  What total incremental manufacturing cost martinez incur

Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows.

  What amount of the above-listed items should be classified

The office space is used equally by dye's sales and accounting departments. What amount of the above-listed items should be classified as general and administrative expenses in dye's multiple-step income statement?

  Factors causing the actual tax savings

Sally vaguely remembers her tax professor in college warning the class that some real estate agents tend to oversell the tax benefits of home ownership. What factors would cause the actual tax savings of a $28,000 mortgage payment to be less than ..

  Strategy for gm

Write a strategy on how GM should operate its financial aspect of the company to improve sales.

  Direct method-amount of costs for department

The human resources department costs are allocated using the direct method and based on the number of employees, and the total amount of costs for the department is $187,000.

  Journal entry to record income taxes for years

The accounting records of Longacre Nursery, Inc., for Year 2 and Year 3 reveal the following: Prepare the journal entry to record income taxes for Year 2. Prepare the journal entry to record income taxes for Year 3.

  Derivative instruments and investment classification

Write down the differences between traditional and derivative instruments. Why do companies use derivative instruments? Are derivatives a good investment?

  Determining the inventory turnover ratio

The following information was available for Bowyer Company at December 31, 2010: beginning inventory $90,000; ending inventory $70,000; cost of goods sold $660,000; and sales $900,000. Bowyer's inventory turnover ratio in 2010 was:

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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