User Account

All Pages

What would be subsidiary adjusted net income for the year

Assignment Help Accounting Basics
Reference no: EM133190112

Question - Parent Inc. owns 80% of Subsidiary Inc. During 2020, Parent Inc. sold inventory to Subsidiary for $10,000. Half of this inventory remained in Subsidiary's warehouse at year end. Subsidiary Inc. sold Inventory to Parent Inc. for $5,000. 40% of this inventory remained in Parent's warehouse at year end.

Both companies are subject to a tax rate of 45%. The gross profit percentage on sales is 20% for both companies. Unless otherwise stated, assume Parent Inc. uses the cost method to account for its Investment in Subsidiary Inc.

If Subsidiary Inc. reported an after-tax net income of $30,000 in 2020, what would be Subsidiary's adjusted net income for the year?

Reference no: EM133190112

Questions Cloud

What you as an hrm can do about helping employees : For this assignment, you will write a 5-/ page paper describing: What you as an HRM can do about helping employees manage their careers.
What is the project average accounting return : You're trying to determine whether to expand your business by building a new manufacturing plant. What is the project average accounting return
Distinguish revenue centers from cost centers : Explain how a hotel is organized, distinguish revenue centers from cost centers, and describe the rooms department. (pp. 188-200)
Issues that the organization pay special attention to : Issues that the organization pay special attention to, Do you recommend the organization to diversify into other areas within or outside the current industry
What would be subsidiary adjusted net income for the year : If Subsidiary Inc. reported an after-tax net income of $30,000 in 2020, what would be Subsidiary's adjusted net income for the year
What would be the impact on inventory turnover : What would be the impact on inventory turnover for Year 2020 consolidated financial statements if no consolidation adjustments were made
Completing a materiality assessment : Completing a materiality assessment is an important step toward developing a community impact framework; therefore, recommend a set of actions that the CCU coul
How much interest will be paid annually on these bonds : On July 1, 2019, $9.5 million face amount of 7%, 10-year bonds were issued. How much interest will be paid annually on these bonds
Developing a global web strategy : Your company manufactures and sells tennis rackets and would like to start selling outside the United States. You are in charge of developing a global Web strat

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