What is the ending balance on Utes Financial Statements

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Reference no: EM132910326

Question - Utes acquires 90% of Bruins on January 1st 20X1 for $810K. At the time of the acquisition Bruin's Retained Earnings was $550K and Common Stock was $350K. During the year, Ute sold $270K of inventory to Bruins.  The inventory originally cost Ute $220K.  At the end of the year, Bruins had $100K of that inventory on hand.  The remainder had been sold to an outside party for $290K. Including the sale of the intercompany inventory to an outside party, Bruins had net income of $400K and no dividends were paid during the year. At the date of acquisition Ute's accumulated depreciation was $95K and Bruin's was $55K.

a- Ute accounts for Bruins under the fully adjusted equity method. What are any equity method adjustments that will be necessary for the full year ending December 31, 20X1? 

b- What are the Elimination Entries at December 31, 20X1?

c- What is the consolidated ending inventory at December 31st 20X1?

d- What is the ending balance on Utes Financial Statements (Stand Alone not Consolidated) for its investment in Bruin?

Reference no: EM132910326

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