At the start of the current year, SBC Corp. purchased 30% of Sky Tech Inc. for $51 million. At the time of purchase, the carrying value of Sky Tech's net assets was $80 million. The fair value of Sky Tech's depreciable assets was $20 million in excess of their book value. For this year, Sky Tech reported a net income of $80 million and declared and paid $20 million in dividends. The total amount of additional depreciation to be recognized by SBC over the remaining life of the assets is: Multiple Choice OOO O $6.0 million. $20 milion $30 million. None of these answer choices are correct.

Pirate Corporation purchased 100 percent ownership of Ship Company on January 1, 20X5, for $271,000. On that date, the book value of Ship’s reported net assets was $209,000. The excess over book value paid is attributable to depreciable assets with a remaining useful life of 10 years. Net income and dividend payments of Ship in the following periods were as shown below: Year Net Income Dividends 20X5 $ 25,000 $ 16,000 20X6 45,000 26,000 20X7 25,000 42,000 Required: Prepare journal entries on Pirate Corporation’s books relating to its investment in Ship Company for each of the three years, assuming it accounts for the investment using the equity method.

On January 1, 2016, Uncle Company purchased 80 percent of Nephew Company's capital stock for $688,000 in cash and other assets. Nephew had a book value of $842,000 and the 20 percent noncontrolling interest fair value was $172,000 on that date. On January 1, 2015, Nephew had acquired 30 percent of Uncle for $394,100. Uncle's appropriately adjusted book value as of that date was $1,247,000.   Separate operating income figures (not including investment income) for these two companies follow. In addition, Uncle declares and pays $25,000 in dividends to shareholders each year and Nephew distributes $6,000 annually. Any excess fair-value allocations are amortized over a 10-year period.     Year UncleCompany NephewCompany 2016 $ 175,000   $ 32,000   2017   202,000     40,800   2018   210,000     57,200     Assume that Uncle applies the equity method to account for this investment in Nephew. What is the subsidiary's income recognized by Uncle in 2018? What is the net income…

On January 1 of the current year, Barger Company buys 150,000 shares of Booker, Incorporated’s common stock for $1,200,000, the book value of the shares. This purchase gave Barger 25% ownership in Booker and the ability to significantly influence operating and financing decisions. At the time of the acquisition, Booker had a total book value of $4,800,000. During the current year, Booker reported net income of $700,000 and paid a $0.85 per share dividend.

domestic

Riverbed Inc acquired 108,000 common shares, which is 25% of the outstanding common shares, of Tahiti Ltd. on January 1, 2023 for $637,200. At the time of purchase, Tahiti Ltd's depreciable assets were undervalued by $35,840. The depreciable assets had a remaining useful life of 5 years with no salvage value. Tahiti Ltd. declared and paid a cash dividend of $0.35 per share on July 31, 2023. Tahiti Ltd. reported $1.3 million as net income on December 31, 2023 for the year ending on this date. Assume that Riverbed Inc. is in a position to exercise significant influence over Tahiti Ltd, and that Riverbed follows IFRS. Prepare all the journal entries for 2023 in the books of Riverbed Inc. relating to above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit…

On January 1, 2021, Flesh-n-Bone Corporation acquired 30% of Doug Corporation's 200,000 outstanding shares at P50 per share. Doug's net assets had a book value on the same date at P8,200,000. On the acquisition date, the following assets were deemed understated: Building having a remaining useful life of 20 years was understated by P1,500,000. Equipment having a remaining life of 10 years was understated by P500,000. Doug reported net income for the year at P2,000,000 and paid cash dividends of P10 per share by December 31. 20. How much investment income should be reported in Flesh-n-Bone Corporation's profit or loss for 2021? a. 600,000 b. 577,500 c. 622,500 d. 562,500 21. What is the carrying amount of the investment in Doug as of December 31, 2021? a. 3,562,500 b. 3,000,000 c. 3,622,500 d. 3,022,500 The answer for number 20 is Letter C and for number 21 is Letter D. Please provide the solution for the two items showing the correct answers above.

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…

On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,500,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 7,500,000 $ 9,000,000 Property, plant, and equipment 12,500,000 15,500,000 Other assets 1,150,000 1,650,000 Current liabilities 5,500,000 5,500,000 Long-term liabilities 7,500,000 7,000,000 Required: Calculate the amount paid for goodwill.

On January 2, 2019, ABC Co. acquired 80% of the outstanding common stock of Shade Co. for ₱1,344,000 with no goodwill resulting from the acquisition. The following selected account balances were taken from the accounting records of XYZ Co. Details shown doe XYZ Co.  in the image. The building has an estimated useful life of 10 years and the equipment is expected to last for 5 years. For the year 2019, ABC Co. reported net income from own operations of ₱2,240,000 and XYZ Co. reported ₱600,000 net income from own operations. ABC Co. accounts its investment in XYZ Co. using the cost method. What is the consolidated income statement for the year 2019. NCI in the consolidated FS for the year 2019.