Reference no: EM132753267
Question: On 1/1/2016, Choco acquired 70% of Cake. Choco paid $700,000 and acquisition date fair value of non-controlling interest (NCI) is $300,000. On 1/1/2016, Choco allocated the entire $80,000 excess fair value over book value to adjust "patented technology" account (estimated remaining life of 10 years). During 2016, Choco sold goods to Cake for $200,000, which cost Choco $170,000. Cake still owns 50% of the goods at the end of 2016. Sales revenue for Choco is $1,200,000, and for Cake is $800,000 in 2016. Cost of goods sold for Choco is $700,000 and for Cake is $500,000 in 2016. Net income for Choco is $120,000 and for Cake is $70,000 in 2016. Cake declared $10,000 of dividends in 2016. Choco uses equity method to account for this investment
a. Calculate 1) gross profit in percentage and 2) gross profit for remaining year-end inventory.
b. What is the "equity in earnings of Cake" and "investment in Cake" in 12/31/16?
c. Prepare consolidation Entry TI
d. Prepare consolidation Entry G:
e. What is the consolidated sales revenue for 2016?
f. What is the consolidated cost of goods sold for 2016?
g. What is the non-controlling interest's (NCI's) share of consolidated net income?
|
What is the irr for a project that costs
: What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from today?
|
|
Determine the amount of gain or loss recognized
: Barry sold depreciable property used in his business to Ken for $192,000 cash plus a bond redeemable in 5 years for $95,000, but currently trading on the NYSE.
|
|
Calculate the net income for tax NIFT
: Village had a taxable capital gain in the year of $2,000. based on accounting and tax basis gain of 4,000. Calculate the net income for tax NIFT
|
|
Find what will be the credit to d capital account
: The ABC partnership is comprised of A, B, and C. What will be the credit to D's capital account assuming the goodwill method is used?
|
|
What is the consolidated sales revenue
: On 1/1/2016, Choco acquired 70% of Cake. Choco paid $700,000 and acquisition date fair value of non-controlling interest (NCI) is $300,000. On 1/1/2016.
|
|
Calculate the net present value of the loan
: Delta is also evaluating the use of a 4-year, 5% loan with proceeds of £375,000. The loan calls for equal annual principal payments.
|
|
What is the value of the bond
: Suppose you buy a bond that will pay $1000 in 10 years along with an annual coupon payment of $50. The interest rate is 4%. What is the value of the bond
|
|
What is the net present value of expanding the production
: X Company is thinking about expanding the production of Product A and eliminating Product B. Expanding sales of A should result in additional firm profits.
|
|
Compute the price of the stock
: The new dividend after 12 months will represent D1. The required rate of return (Ke) is 14 percent. Compute the price of the stock (P0)
|