(a) Assuming Oriole is using the equity method under ASPE, did the initial investment include a payment for goodwill? Payment for goodwill $
Q: Sales (@$61 per unit) Cost of goods sold (@$40 per unit) Gross margin Selling and administrative…
A: Absorption costing and variable costing represent two separate methodologies for computing net…
Q: Dell Canada advertises a computer bundle ncluding printer, router and home network ttached storage…
A: Lease is kind of arrangement where equipment can be used by payment of monthly payments and no…
Q: Assume a company is preparing a budget for its first two months of operations. During the first and…
A: The cash budget is part of the master budget and it shows estimated; cash inflow and cash outflow…
Q: i need the answer quickly
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Advanced Company reports the following information for the current year. All beginning inventory…
A: Absorption costing means where inventory is valued at total manufacturing cost.. Variable costing…
Q: 8
A: The answer is in the explanation section below.Explanation:For Project A:The Present Value (PV) of…
Q: Vaughn Corporation shipped $18,400 of merchandise on consignment to Gooch Company. Vaughn paid…
A: Journal entry refers to the entries which record the transactions of the business into the books of…
Q: During May, Joliet Fabrics Corporation manufactured 520 units of a special multilayer fabric with…
A: Variances are typically not taken into account. When actual results diverge from anticipated…
Q: Morning Sky, Incorporated (MSI), manufactures and sells computer games. The company has several…
A: It is a decision-making tool used in business. .It is used to determine the true cost difference…
Q: Kandon Enterprises, Incorporated, has two operating divisions; one manufactures machinery and the…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: Flexible budget is the statement prepared by the entity for the purpose of estimating the fixed and…
Q: the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses…
A: Lets understand the basics.Whether to discontinue business operation or not needs to require…
Q: Sachs Brands's defined benefit pension plan specifies annual retirement benefits equal to 1.5% x…
A: The current value of pension benefits that employees have accrued based on their service history to…
Q: ake's Roof Repair provided the following data concerning its costs: Cost per Repair-Hour Fixed Cost…
A: The variance is the difference between the standard and actual cost data. The variance can be…
Q: I need help solving all requirements
A: Garden Depot Cash BudgetCategory 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter YearBeginning cash…
Q: On January 2, 2020, Sheffield Company acquired 90% of the outstanding common stock of Wildhorse…
A: Consolidated financial statements are prepared when one entity acquires more than 50% of shares in…
Q: Effect of doubtful accounts on net income During its first year of operations, Mack's Plumbing…
A: The allowance for doubtful accounts is created to record the estimated bad debt expense for the…
Q: When you undertook the preparation of the financial statements for Cullumber Company at January 31,…
A: Retail methodRetail method is a technique used in inventory valuation. The retail inventory method…
Q: urance ertising expense tgage interest perty taxes airs & maintenance lities reciation $ 1,000 see…
A: Tax accounting for rental properties refers to the set of rules and regulations related to the…
Q: Assuming a $130 fee assessed by the bank for each bounced check, how much fee revenue would the bank…
A: Bouncing charges are the charges recovered by banks or financial institutions when a check presented…
Q: 4. Undertake a sensitivity analysis assessing the impact of operating leverage on net income based…
A: The objective of the question is to conduct a sensitivity analysis to assess the impact of operating…
Q: Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Sales (16,000…
A: BudgetThe report estimating the values for a future period from the past actual values is called a…
Q: Concord Corporation is preparing its December 31, 2025, balance sheet. The following items may be…
A: Current liabilities are the liabilities of the entity that are to be repaid within 12 months from…
Q: Kana is a CPA who loves chinchillas. She breeds chinchillas as pets (she currently owns 13 of them)…
A: The objective of the question is to determine the amount of income and expense Kana recognizes from…
Q: Vail is one of the largest ski resorts in the United States. Suppose that on October 1, 2024, Vail…
A: Revenue is defined as any monetary payment received from a customer when an entity carries out its…
Q: Question 5 rame Limited makes three products: A, B and C. The budget for the following three months…
A: The objective of the question is to determine which product Frame Limited should prioritize in…
Q: Complete the formulas in the spreadsheet below. Select the correct VLOOKUP function in cell C8 to…
A: An incentive offered to a customer that leads to a reduced cost per unit of goods or materials…
Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…
A: Cash budget is the statement prepared by the entity for the purpose of estimating the cash receipts…
Q: i need the answer quickly
A: In accounting, journal entries are the main way that financial transactions are documented. These…
Q: Milan Manufacturing Company has identified three cost pools to allocate overhead costs. The…
A: The objective of the question is to calculate the overhead cost per direct labor-hour for the Milan…
Q: 13. Statement of cash flows preparation. Selected financial statement information and additional…
A: Cash flow statement is a statement which records inflow & outflow of cash from the three main…
Q: Comfort Ride manufactures seats for airplanes. The company has the capacity to produce 100,000 seats…
A: Dear student, below is an answer to your assignment. Please follow it closely for a clear…
Q: 1
A: False.Companies typically stop depreciating or amortizing long-term operating assets when they are…
Q: (a) Your Answer Correct Answer (Used) Calculate the amount of capital cost allowance and…
A: Capital cost allowance: Capital cost allowance is the deduction provided to the taxpayer for…
Q: The Cutting department of Heart Corporation in the month of March started with beginning work in…
A: Equivalent units of production - The equivalent units of production are a concept that is used to…
Q: October 15. October 20 Purchase 82 units of inventory from Waluigi Company for $52 per unit. October…
A: The journal entries are prepared to record the transactions on regular basis.The FIFO stands for…
Q: The statement of financial position as of December 31, 2024, for Pharoah Corporation follows: (all…
A: Financial ratios are the mathematical expression between two independent values, which when formed…
Q: Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: Budgeted unit…
A: Weller CompanySelling and Administrative Expense BudgetFor the Year Ending [Insert Year] (assuming…
Q: Sheffield Inc. reports the following pretax income (loss) for both financial reporting purposes and…
A: The entire amount of taxes that a person, business, or other organization owes to a taxing body is…
Q: Product: Complan Revenue per unit Total Variable Costs of Goods Sold Total Fixed Costs of Goods Sold…
A: The objective of this question is to calculate various budget assumptions for the Santa Fe Division…
Q: Required information Problem 8-77 (LO 8-5) (Algo) [The following information applies to the…
A: The amount that every employer will deduct from the employee's salary and pay the same to the…
Q: antana Rey, owner of Business Solutions, decides to prepare a statement of cash flows for her…
A: The cahs flow statement is prepared to record the cash flow from various activities during the…
Q: Determine the unit value that should be used for inventory costing following…
A: Inventory is valued using lower cost or market value. market value is determined by a lower of…
Q: [The following information applies to the questions displayed below.] Hemming Company reported the…
A: Inventory valuation is based on the method of flow used by the organization. It can be the first in…
Q: ! Required information [The following information applies to the questions displayed below.) A…
A: According to IAS-2 “Valuation of inventory”, inventories are valued at lower of cost or net…
Q: Exercise 13 - 17A (Algo) Recording transactions in the general journal and T-accounts LO 13 - 1,…
A: The journal entries are prepared to record the transactions on a regular basis. The T-accounts are…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Trial Balance is a summary of all the balances in ledger accounts.
Q: On January 1, Mitzu Company pays a lump-sum amount of $2,800,000 for land, Building 1, Building 2,…
A: The journal entries are prepared to record the transactions on regular basis.The journal keeps the…
Q: Required: Compute the following variances for April: 1. The materials price and quantity variances.…
A: A budget is a tool to estimate future cost revenue and expenses. After developing a budget, the…
Q: Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid…
A: Journal Entry:— It is an act of recording transactions in books of account when transaction…
Gadubhai
![On January 1, 2022, Oriole Corp. bought 28,000 shares of the available 100,000 common shares of Iceberg Inc., a publicly traded firm.
This acquisition provided Oriole with significant influence. Oriole paid $722,000 cash for the investment. At the time of the
acquisition, Iceberg reported assets of $2,493.000 and liabilities of $1,192,000. Asset values reflected fair market value, except for
capital assets that had a net book value of $505,000 and a fair market value of $753,000. These assets had a remaining useful life of
five years. For 2022 Iceberg reported net income of $390,000 and paid total cash dividends of $100,000.
On May 16, 2023, Oriole sold 14,000 of its shares in Iceberg for $425,000. Oriole has no immediate plans to sell its remaining
investment in Iceberg.
Iceberg is actively traded, and stock price information follows:
January 1, 2022
$29
December 31, 2022
$31
January 1, 2023
$32
(a)
Assuming Oriole is using the equity method under ASPE, did the initial investment include a payment for goodwill?
Payment for goodwill
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20880e3c-b5a9-4610-adf6-6c2c7a1f17a2%2Fdc4409cc-cdfb-48b2-92d4-e28a0142138a%2Fpp7qhic_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- On January 1, 2022, Cullumber Corp. bought 31,000 shares of the available 100,000 common shares of Iceberg Inc., a publicly traded firm. This acquisition provided Cullumber with significant influence. Cullumber paid $719,000 cash for the investment. At the time of the acquisition, Iceberg reported assets of $2,507,000 and liabilities of $1,215,000. Asset values reflected fair market value, except for capital assets that had a net book value of $502,000 and a fair market value of $747,000. These assets had a remaining useful life of five years. For 2022 Iceberg reported net income of $409,000 and paid total cash dividends of $100,000. On May 16, 2023, Cullumber sold 15,500 of its shares in Iceberg for $425,000. Cullumber has no immediate plans to sell its remaining investment in Iceberg. Iceberg is actively traded, and stock price information follows: January 1, 2022 $29 December 31, 2022 $31 January 1, 2023 $32 Assuming Cullumber is using the equity method under ASPE, did the initial…On January 1, 2023, Payne Company bought a 15 percent interest in Scout Company. The acquisition price of $225,500 reflected an assessment that all of Scout’s accounts were fairly valued within the company’s accounting records. During 2023, Scout reported net income of $121,900 and declared cash dividends of $36,200. Payne possessed the ability to significantly influence Scout’s operations and, therefore, accounted for this investment using the equity method. On January 1, 2024, Payne acquired an additional 80 percent interest in Scout and provided the following fair-value assessments of Scout’s ownership components: Consideration transferred by Payne for 80% interest $ 1,454,400 Fair value of Payne's 15% previous ownership 272,700 Noncontrolling interest's 5% fair value 90,900 Total acquisition-date fair value for Scout Company $ 1,818,000 Also, as of January 1, 2024, Payne assessed a $435,000 value to an unrecorded database internally developed by Scout. The database is…On January 1, 2020, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $184,500 reflected an assessment that all of Sysinger’s accounts were fairly valued within the company’s accounting records. During 2020, Sysinger reported net income of $100,000 and declared cash dividends of $30,000. Allan possessed the ability to significantly influence Sysinger’s operations and, therefore, accounted for this investment using the equity method. On January 1, 2021, Allan acquired an additional 80 percent interest in Sysinger and provided the following fair-value assessments of Sysinger’s ownership components: Consideration transferred by Allan for 80% interest $ 1,400,000 Fair value of Allan's 15% previous ownership 262,500 Noncontrolling interest's 5% fair value 87,500 Total acquisition-date fair value for Sysinger Company $ 1,750,000 Also, as of January 1, 2021, Allan assessed a $400,000 value to an unrecorded…
- On January 1, 2023, Tamarisk Company issued 1,450 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Sheffield Company in a purchase transaction. Registration costs amounted to $2,500, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: Cash Accounts receivable (net) Inventory Plant and equipment (net) Land Total assets Accounts payable Notes payable Common stock, $20 par value Other contributed capital Retained earnings Total equities Tamarisk Company $83,000 103,000 56,000 95,000 23,500 $360,500 $63,000 89,500 100,000 60,000 48,000 $360,500 Sheffield Company $12,600 18,000 25,000 46,500 22,000 $124,100 $19,500 30,000 40,000 27,500 7,100 $124,100 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.On January 1, 2023, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $6.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 14,000 Liabilities 268,000 Common stock. 190,000 Retained earnings $ 212,000 100,000 160,000 $ 472,000 $ 472,000 es On January 1, 2023, Holland assessed the carrying amount of Zeetand's equipment (5-year remaining life) to be undervalued by $55,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $285,000. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's…On January 1, 2023, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $6.50 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $ 14,800 Liabilities 268,800 Common stock 200,400 Retained earnings $ 224,000 100,000 160,000 $ 484,000 $ 484,000 On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $63,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $315,600. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's…
- On January 1, 2023, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents $14,700 Liabilities 288,708 Common stock 199,100 Retained earnings $422,500 $222,500 100,000 100,000 $ 422,500 On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $62,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $226,900. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's…On January 1, 2023, Holland Corporation paid $7 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland's outstanding voting stock, representing a 60 percent ownership interest. The remaining 40,000 shares of Zeeland continued to trade in the market close to its recent average of $5.00 per share both before and after the acquisition by Holland. Zeeland's acquisition date balance sheet follows: Current assets Property and equipment (net) Patents On January 1, 2023, Holland assessed the carrying amount of Zeeland's equipment (5-year remaining life) to be undervalued by $43,000. Holland also determined that Zeeland possessed unrecorded patents (10-year remaining life) worth $246,400. Zeeland's acquisition-date fair values for its current assets and liabilities were equal to their carrying amounts. Any remaining excess of Zeeland's acquisition-date fair value over its book value was attributed to goodwill. The companies' financial statements for the…Z Corporation has the following transactions relating to its investment during 2020: Jan 5 Acquired 16,000 shares of Y company for P1,500,000 paying an additional P10,000 for brokerage and P5,000 for commission. Feb 14 Received dividends from Y company declared January 10,2020 to the stockholders of records January 31,2020, P16,000. Required:prepare all the necessary entries assuming the investment is 1. Financial asset at Fair Value through profit and loss 2. Financial asset at Fair Value through other comprehensive income
- On January 1, 2023, Fisher Corporation purchased 40 percent (70,000 shares) of the common stock of Bowden, Incorporated, for $974,000 in cash and began to use the equity method for the investment. The price paid represented a $60,000 payment in excess of the book value of Fisher's share of Bowden's underlying net assets. Fisher was willing to make this extra payment because of a recently developed patent held by Bowden with a 15-year remaining life. All other assets were considered appropriately valued on Bowden's books. Bowden declares and pays a $102,000 cash dividend to its stockholders each year on September 15. Bowden reported net income of $390,000 in 2023 and $342,000 in 2024. Each income figure was earned evenly throughout its respective years. On July 1, 2024, Fisher sold 10 percent (17,500 shares) of Bowden's outstanding shares for $332,000 in cash. Although it sold this interest, Fisher maintained the ability to significantly influence Bowden's decision-making process.…Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000 in cash. Annual excess amortization of $15,700 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $408,000, and Rambis reported a $205,000 balance. Herbert reported internal net income of $45,000 in 2020 and $58,700 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $25,900 in 2020 and $39,600 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert’s internal net income figures above do not include any income from the subsidiary. If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2021? What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied either the initial value or partial equity method for internal accounting purposes? Consolidated retained earnings (equity method),…Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2020, for $592,000 in cash. Annual excess amortization of $15,700 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $408,000, and Rambis reported a $205,000 balance. Herbert reported internal net income of $45,000 in 2020 and $58,700 in 2021 and declared $10,000 in dividends each year. Rambis reported net income of $25,900 in 2020 and $39,600 in 2021 and declared $5,000 in dividends each year. a. Assume that Herbert’s internal net income figures above do not include any income from the subsidiary. If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2021? What would be the amount of consolidated retained earnings on December 31, 2021, if the parent had applied either the initial value or partial equity method for internal accounting purposes? b. Under each of the following situations, what is…
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)