On January 1, 2020, Chamberlain Corporation pays $586,800 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $23,700 results from the acquisition. On December 31, 2021, Neville reports revenues of $506,000 and expenses of $348,000 and Chamberlain reports revenues of $828,000 and expenses of $497,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?
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On January 1, 2020, Chamberlain Corporation pays $586,800 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $23,700 results from the acquisition. On December 31, 2021, Neville reports revenues of $506,000 and expenses of $348,000 and Chamberlain reports revenues of $828,000 and expenses of $497,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?
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- On January 1, 2017, Chamberlain Corporation pays $388,000 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $15,000 results from the acquisition. On December 31, 2018, Neville reports revenues of $400,000 and expenses of $300,000 and Chamberlain reports revenues of $700,000 and expenses of $400,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?a. $385,000b. $351,000c. $366,000d. $400,000Parent Company sells land with book value of P5,000 to Subsidiary Company for P6,000 in 2020. Subsidiary Company holds the land during 2021. Subsidiary Company sells the land for P8,000 to an outside entity in 2022. In 2020, the unrealized gain: A. Is initially included in the subsidiary’s accounts and must be eliminated from Parent Company’s income from Subsidiary Company under the cost method B. Is eliminated from consolidated net income by a working paper entry that includes a credit to the land account for P6,000 C. Is eliminated from consolidated net income by a working paper entry that includes a credit to the land account for P1,000 D. To be eliminated is affected by the non-controlling interest percentageChoose the correct.On January 1, 2017, Chamberlain Corporation pays $388,000 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $15,000 results from the acquisition. On December 31, 2018, Neville reports revenues of $400,000 and expenses of $300,000 and Chamberlain reports revenues of $700,000 and expenses of $400,000. The parent figures contain no income from the subsidiary. What is consolidated net income attributable to Chamberlain Corporation?a. $385,000b. $351,000c. $366,000d. $400,000
- Green Co. sold inventories on May 1, 2019 to its 75% owned subsidiary, Indigo Company. The inventories costing P188,000 were sold for a 25% gross profit Out of these inventories, sold to outsiders during 2019. In 2020, Green Co. reported net income of P430,000s and Indigo Co. reported net income of P280,000 How much of the consolidated net income is to be allocated to non- controlling interest in 2020? a.76, 267 b.74, 700 c.81,750 d. 70,000Parent Corporation acquired 90 percent of the outstanding voting stock of Subsidiary, Inc., on January 1, 2020, when Subsidiary had a net book value of $610,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $4,000 per year. Parent's 2021 net income before consideration of its relationship with Subsidiary (and before adjustments for intra-entity sales) was $510,000. Subsidiary reported net income of $320,000. Parent declared $200,000 in dividends during this period; Subsidiary paid $61,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Parent Subsidiary $350,000 $111,000 810,000 410,000 Equipment (net) 610,000 510,000 Inventory Land In 2020, Subsidiary sold land costing $51,000 to Parent for $92,000. On the 2021 consolidated balance sheet, what value should be reported for land? Complete this question by entering your answers in the tabs below. Required On the 2021 consolidated balance sheet, what value…Sydney Ltd owns all of the shares of Mel Ltd. In relation to the following intragroup transactions, all parts of which are independent unless specified, prepare the consolidation worksheet adjusting entries for preparation of the consolidated financial statements as at 30 June 2019. Assume an income tax rate of 30%. (a) SYD Ltd manufactures certain items which it then markets through MEL Ltd. During the current period, SYD Ltd sold items for $20 000 to MEL Ltd at cost plus 20%. MEL Ltd has sold 75% of these transferred items at 30 June 2019.
- On January 1, 2019, Parrison Co acquired 90% of Fatarr Company in exchange for $ 1,125,000 fair - value consideration. The total fair value of Fatarr Company was assessed at $ 1,200,000 Parrison computed annual excess fair - value amortization of $ 8,000 based on the difference between Fatarr's total fair value and its underlying book value. The subsidiary reported net income of $ 70,000 in 2019 and $ 90,000 in 2020 with dividend declarations of $ 30,000 each year. Apart from its investment in Fatarr, Parrison had net income of 220,000 in 2019 and $ 260,000 in 2020 a. What is the consolidated net income in 2019? b. What is the balance of the noncontrolling interest in Fatarr at December 31, 2020? c. What is the net income in 2019 attributable to the noncontrolling interest?On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80 million. The sale was completed on December 31, 2021. Jazzie’s year ends on December 31st. The following additional facts pertain to the transaction: The Mister Division qualifies as a component of an entity as defined by GAAP. Mister's net assets totaled $48 million on Jazzie's books at the time of the sale. Mister incurred a pre-tax operating loss of $10 million in 2021. Jazzie’s income tax rate is 40%. Suppose that the Mister Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets at December 31 was $80 million. In their 2021 income statement, Jazzie Co. would report for discontinued operations: Group of answer choices a $6 million after tax loss. a $10 million after tax loss after tax income of $13.2 million. after tax income of $22 million.On May 1, 2021, Jazzie Co. agreed to sell the assets of its Mister Division to Shawna Inc. for $80 million. The sale was completed on December 31, 2021. Jazzie’s year ends on December 31st. The following additional facts pertain to the transaction: The Mister Division qualifies as a component of an entity as defined by GAAP. Mister's net assets totaled $48 million on Jazzie's books at the time of the sale. Mister incurred a pre-tax operating loss of $10 million in 2021. Jazzie’s income tax rate is 40%. Suppose that the Mister Division's assets had not been sold by December 31, 2021, but were considered held for sale. Assume that the fair value of these assets at December 31 was $40 million. In their 2021 income statement, Jazzie Co. would report for discontinued operations: Group of answer choices a $6 million after tax loss. a $10 million after tax loss. a $10.8 million after tax loss. an $18 million after tax loss.
- Kent Ltd owns all of the shares of Lodh Ltd. In relation to the following intragrouptransactions, all parts of which are independent unless specified, prepare theconsolidation worksheet adjusting entries for preparation of the consolidated financialstatements as at 30 June 2020. Assume an income tax rate of 30%. a. On 1 January 2020, Kent Ltd sold inventory costing $10,000 to Lodh Ltd at a transfer (sale) price $16,000. Lodh Ltd sold half of this inventory to an external party for $10,000 (i.e., half of the inventory is remained with Lodh Ltd at the end of the year). b. During March 2018, Lodh Ltd paid a $5,500 interim dividend. c. Kent Ltd rented a spare warehouse to Lodh Ltd. The total charge for the rental was $6,000. Lodh Ltd paid the whole amount to Kent Ltd during the year. d. On 1 July 2019, Kent…On January 1, 2021, Sub Company, an 80% owned subsidiary of Parent Company, sold to Parent Company equipment with a book value of 581000 for 714000. The equipment had an estimated remaining useful life of six years on the date of the intercompany sale. Parent Company reported net income from its independent operations of 501000, and Sub Company reported net income of 445000 in the years of 2021 and 2022. The controlling interest in combined net income for the years ended December 31, 2021 was ___________ and on December 31, 2022 was __________Dipendra Ltd owns all the shares capital of Kiran Ltd. On 1 September 2021, Dipendra Ltd sold inventory to Kiran Ltd $21,800. Dipendra Ltd originally purchased the inventory for $15,260. 50% of the inventory in Kiran Ltd was sold outside the group by 31 December 2021 (financial year end). The tax rate is 30%. Record the consolidation elimination entries for the intragroup sale of inventory Dr Sales Cr Cost of Sales Cr Inventory Dr Deferred Tax Liability