User Account

All Pages

What would be any adjustment you would make

Assignment Help Accounting Basics
Reference no: EM133020293

Question - A owns 80% of B. On the date of acquisition, the goodwill was $88,000. This acquisition took place in 2018. In January 1 2020 A sold equipment to B. The book value of this equipment was $100,000. The gain before tax, on this sale, was $50,000. This equipment is being depreciated over the next 15 years, no residual value.

The tax rate for both companies is 40%.

The fiscal year end for both companies is December 31.

In 2020, income before Taxes earned by Company A is $1,000,000; while income before taxes for company B is $350,000.

What would be any adjustment you would make to the NCI taking into consideration the elimination of this intercompany transaction in 2020?

Reference no: EM133020293

Questions Cloud

What amount of cash did franco received from the bank : Franco, Inc. received from a customer a one-year, P1,000,000 note bearing annual interest of 8%. What amount of cash did Franco received from the bank
What would you pay for the share now : The share price is expected to be $250 at that time. If you require a 13% rate of return, what would you pay for the share now
What would you pay for a share of this stock : Bronze plc currently pays a £2 per share dividend. What would you pay for a share of this stock if you demand a 20 percent rate of return
What is the NPV, IRR and Discounted PayBack of the project : The life of the project is five years. What is the NPV, IRR and Discounted PayBack of the project? Show the breakdown of the cash flows and all the steps
What would be any adjustment you would make : What would be any adjustment you would make to the NCI taking into consideration the elimination of this intercompany transaction in 2020
What is the net carrying value of the patent : Rizzo Inc. purchased a patent for $465,000 on June 30, 2020. It has a useful life of 20 years. What is the net carrying value of the patent on December 31, 2022
Compute over or under absorption of overhead : Actual machine hours worked = 86700; Actual production overhead = Rs. 9,80,000. Compute over or under absorption of overhead
Calculate the cumulative average abnormal return : The expected return on CDE Ltd.'s share was -0.5 per cent on that next day. Calculate the cumulative average abnormal return
What is the value of the equity in this firm : These assets are expected to increase in value to either $1,850 or $2,500 by next year. What is the value of the equity in this firm

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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