People Co. acquired 80% of Steeple Co.'s common stockfor $10,000,000 in cash on Jan. 2, 20x1. At that date,Steeple's 56,000,000 of net assets were fairly stated,except for an unrecorded intangible asset, favorable leases,with a $1,000,000 value (useful life of 10 years, straight-lineamortization). The estimated fair value of the noncontrollinginterests at the acquisition date was $2,000,000. PeopleCo. accounts for its investment in Steeple Co. using theequity method. There are no intra-entity transactions andboth firms are in the U.S.A It is now December 31, 20x3.Steeple reported net income of $250,000 for the currentyear, and declared and paid $40,000 in dividends. Therewere no impairments of Steeple's assets in 20x1, 20x2 orbut goodwill is impaired by $100,000 in 20x3.Show consolidating entry R (relates to recognizingrevalued assets and liabilities) that would be needed topresent consolidated financial statements for 20x3.

Name: People Co. acquired 80% of Steeple Co.'s common stockfor $10,000,000
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: People Co. acquired 80% of Steeple Co.'s common stockfor $10,000,000 in cash on Jan. 2, 20x1. At that date,Steeple's 56,000,000 of net assets were fairly stated,except for an unrecorded intangible asset, favorable leases,with a $1,000,000 value (use

The entries have been prepared below.

Answered: 00,000 in cash on Jan. 56,000,000 of…

Business

Accounting

00,000 in cash on Jan. 56,000,000 of net ass r an unrecorded intang 000,000 value (useful on). The estimated fair

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PreviousBalance AnnualPercentageRate (APR)(as a %) MonthlyPeriodicRate FinanceCharge(in $) Purchasesand CashAdvances PaymentsandCredits NewBalance(in $) $2,490.00 % 1 1 4 % $ $1,374.98 $300.00 $
pls compute manually
20 - In the cash count made on 10.05.202, a cash balance of 25.000 TL was determined. As of the same date, the total debit of the cash account is TL 45,000, and the total receivable is TL 15,000. Which of the following calculations is correct in this situation? a) 397 Count and Receipt Surplus Hs. 5.000 TL (Creditor) B) 760 Marketing Sales and Distribution Expenses Hs. 5,000 (Borrower) NS) 770 General Administrative Expenses Hs. 5,000 (Borrower) D) 100 Case Hs. 5,000 TL (Borrower) TO) 197 Lack of Counting and Receipt Hs. 5,000 TL (Borrower)
What is the present value of the following cash flow stream at a rate of 6.25%? $411.57 $433.23 $456.03 $480.03 $505.30
Ay 2.
7.14 Alpha sells machine B for $50,000 cash on 30 April 20X4. Machine B cost $100,000 when it was purchased and has a carrying amount of $65,000 at the date of disposal. What are the journal entries to record the disposal of machine B? DEBIT Accumulated depreciation DEBIT Loss on disposal (SPL) DEBIT Cash CREDIT Non-current assets - cost A $35,000 $15,000 $50,000 $100,000 DEBIT Accumulated depreciation DEBIT Loss on disposal (SPL) CREDIT Non-current assets - cost $65,000 $35,000 $100,000 DEBIT Accumulated depreciation DEBIT Cash CREDIT Non-current assets CREDIT Profit on disposal (SPL) $35,000 $50,000 $65,000 $20,000 DEBIT Non-current assets DEBIT Accumulated depreciation CREDIT Cash CREDIT Profit on disposal (SPL) $65,000 $35,000 $50,000 $50,000
9. What is the capital balance of Tak at December 31, 20x2? 28 A a. P180,000 b. P170,000 c. P165,000 d. Not given SIXOS mot and 100 to stile si 10. What is the capital balance of Gu at December 31, 20x2? a. P220,000 b. P215,000 c. P200,000 d. Not given 007 0902 3 nevig Vo ordub juongoro att mi to side odd ei four we 17 000.08 I s 000.079 000/03/1 8
Given the cash flows and information in the table below. Which alternative do you choose (mutually exclusive)? MARR 6% Life (years) 4 A B D Initial Cost CF, years 1-4 PW B 11,000 13,500 14,000 8400 4000 4500 4880 3000 $13,860 $15,593 $16,910 $10,395 B/C 1.26 1.16 1.21 1.24 A-D B-D C-A 1.02 2.63 C-D В-А C-B B/C 1.33 1.02 1.16 0.69
Hi There, I need ask a favor... How to calculate "Current Liabilites" if I only know, these following data : - Cash and Equivalents : $ 100.00 - Fixed Assets : # 283.50 - Sales : $ 1,000.00 - Net Income : $ 50.00 - Quick Ratio : 2.0 x - Current Ratio : 3.0 x - DSO : 40 Days - ROE : 12% Thank you
For the following cash flow the Present equivalent is equal to (i=10%): 200 2" 3 50 1010 Select one: O - 9.9665 O -10.9665 O -919.96 O - 909.96 4,
The accounting department of a large limousine company is analyzing the costs of its services. The cost data and level of activity for the past 16 months follow. Month Special Analyses CustomerAccounts PaychecksProcessed AccountingService Costs 1 2 325 1,029 $ 63,800 2 4 310 993 68,900 3 2 302 1,268 64,000 4 1 213 1,028 61,300 5 2 222 984 61,600 6 0 214 712 50,800 7 1 131 762 51,020 8 1 123 739 54,300 9 0 115 708 50,500 10 2 296 1,232 64,800 11 2 213 978 58,000 12 1 222 929 57,500 13 2 217 1,059 62,200 14 2 132 942 54,900 15 4 300 1,299 71,530 16 4 315 1,283 64,800 Totals 30 3,650 15,945 $ 959,950 In…
Find the present worth (at time 0) of the cash flows shown in the diagram below. Assume i=10% per year compounded semiannually. 0 1 2345 67 8 9 10 11 $480 $500 $500 $460 $440 $420 $400 $380 $340 $360 Year