Determine balance sheet, Financial Accounting

Assignment Help:

Determine balance sheet:

Income Statements

Year Ended December 31, 20X8

 

Insure Co.

Go-med Co.

Sales

$3,900,000

$1,560,000

Other income

260,000

91,000

Gain on sale of land

___-___

130,000

 

4,160,000

1,781,000

Cost of sales

1,820,000

728,000

Operating expenses

780,000

559,000

Income tax

520,000

195,000

 

3,120,000

1,482,000

    Net income

$1,040,000

 299,000

 

Insure acquired 40% of the common shares of Go-med in 20X2 for $1,072,500. 

For 20X8, Insure amortized its acquisition differential as follows:

                   Buildings                                  $ 11,700

                   Long-term liabilities                    (16,250)

                   Goodwill impairment loss          16,900

                                                                   $ 12,350

During 20X8, Go-med paid royalties of $162,500 to Insure, which Insure included in its other income.

During 20X8, Go-med sold land to a third party.  It had acquired the land 3 years ago from Insure.  At that time, Insure had recorded a profit on the sale of $29,250.

During 20X8, Go-med declared and paid dividends of $104,000.

Both Insure and Go-med pay taxes at an average rate of 40%.

Required:

Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements.  Prepare a 20X8 consolidated income statement for Insure using proportionate consolidation.


Related Discussions:- Determine balance sheet

Acc 400, d. Prepare the summary journal entry required to transfer finished...

d. Prepare the summary journal entry required to transfer finished component kits from the Cutting Department to the Finishing Department in January. e. Compute the total cost assi

Illustration of deffered tax-financial statement, Illustration of Deffered ...

Illustration of Deffered Tax A firm bought an item of plant at a total amount of £50,000. During the first year, the firm provided for depreciation of 10,000. The item of plant

Concept of financial statements , Concept  of Financial statements  Fin...

Concept  of Financial statements  Financial statements portray the financial effect of transactions and events by grouping them into classes broadly called elements. A complete

Journal entries to record transactions in the general fund, A village orde...

A village ordered supplies for its Fire Department at an estimated cost of $16,700. The supplies were received with an invoice for $16,800. The village accepted the shipment and th

Assets-balance sheet-trusts laws and accounts, Assets   1) The classificat...

Assets   1) The classification of investments in the Balance Sheet will be under a few broad headings with schedules listing the individual assets. Where the Trustees Act has been

During the course you will be required to develop a , During the course you...

During the course you will be required to develop a Course Project having to do with writing notes for a fictitious annual report.

Define the 401 plan, Q. Define the 401 Plan? 401(k) Plan - EMPLOYEE BEN...

Q. Define the 401 Plan? 401(k) Plan - EMPLOYEE BENEFIT PLAN authorized by INTERNAL REVENUE CODE section 401(k), whereby an employer establishes an account for every participati

IAS 40, Hi I am doing my thesis on IAS 40 and I''m sort of stuck with find...

Hi I am doing my thesis on IAS 40 and I''m sort of stuck with finding information. I need to find positive and negative international critique on the standard

determine the hibor , The following are the three-month HIBOR and three-ye...

The following are the three-month HIBOR and three-year EFN futures prices for September 2010 contracts.   a Determine the HIBOR in three-months for settling the futures

Write Your Message!

Captcha
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!

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