On September 17, 2021, Ziltech, Inc., entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2021, the company’s fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division’s assets at the end of the year was $16 million. The pretax income from operations of the division during 2021 was $6 million. Pretax income from continuing operations for the year totaled $19 million. The income tax rate is 25%. Ziltech reported net income for the year of $9.0 million.   Required: Determine the book value of the division's assets on December 31, 2021. (Enter your answer in whole dollars not in millions.)

On January 1, 2020, Pink Corp. 'sold' a machine for $6000 to Slink Corp., its wholly-owned subsidiary. Pink paid $18000 for this machine. At January 1, 2020, accumulated depreciation was $6000. The remaining useful life is assumed to be 10 years. Straight line depreciation is used by both companies. In Pink's December 31, 2020 consolidatedincome statement, at what amount should DEPRECIATION EXPENSE be reported? BE SURE TO TYPE A SIMPLE NUMBER WITH NO COMMAS OR DOLLAR SIGNS. FOR EXAMPLE, TYPE 1000 INSTEAD OF $1,000.

On May 28, 2024, Pesky Corporation acquired all of the outstanding common stock of Harman, Incorporated, for $460 million. The fair value of Harman's identifiable tangible and intangible assets totaled $540 million, and the fair value of liabilities assumed by Pesky was $180 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2024. Management has provided the following information: Fair value of Harman, Incorporated $ 440 million Fair value of Harman's net assets (excluding goodwill) 375 Book value of Harman's net assets (including goodwill) 458 million million Required: 1. Determine the amount of goodwill that resulted from the Harman acquisition. 2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2024, if any. 3. If an impairment loss is required, prepare the journal entry to record the loss.

Branson paid $537,100 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2017. On that date, the subsidiary had a book value of $353,000 (common stock of $200,000 and retained earnings of $153,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $153,000 fair value. Any remaining excess fair value was considered goodwill. In negotiating the acquisition price, Branson also promised to pay Wolfpack’s former owners an additional $57,000 if Wolfpack’s income exceeded $120,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $39,900. On December 31, 2017, based on Wolfpack’s earnings to date, Branson increased the value of the contingency to $45,600. During the subsequent two years, Wolfpack reported the following amounts for income and dividends:     Net Income Dividends Declared 2017 $ 66,400…

Chance Company had two operating divisions, one manufacturing farm equipment and the other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on September 1, 2024, the company adopted a plan to sell the assets of the division. Consider the following: • The actual sale was completed on December 15, 2024, at a price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. • The division incurred a before-tax operating loss from operations of $120,000 from the beginning of the year through December 15. . • Chance's after-tax income from its continuing operations is $550,000. • The income tax rate is 25%. Required: Prepare an income statement beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding…

Fleming Corporation acquired Out-of-Sight Products on January 1, 2025 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2025, the Out-of- Sight Products Division had a fair value of $3,400,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss on impairment of goodwill should Fleming record in 2025? O $-0- O $250,000 O $350,000 O $600,000

On January 1, 2020, Pail Corporation acquired 75 percent of Sand Company's common stock for $525,000 cash. The fair value of the noncontrolling interest at that date was determined to be $175,000. At the date of the business combination, the book values of Sand's net assets and liabilities approximated fair value except for depreciable plant assets, which were UNDERvalued by $4000 and Inventory, which was OVERvalued by $4500 The remaining useful life of the plant assets was set at 10 years. For the year ended December 31, 2020, Pail reported Depreciation Expense of $15000 on its general ledger. Sand reported Depreciation Expense of $9000 on its general ledger. What amount of Depreciation Expense should be reported on the 12/31/20 consolidated Income Statement?

Parson Company acquired an 80 percent interest in Syber Company on January 1, 2020. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2021 follow (credit balances indicated by parentheses):

On September 17, 2024, Ziltech, Incorporated, entered into an agreement to sell one of its divisions that qualifies as a component of the entity according to generally accepted accounting principles. By December 31, 2024, the company's fiscal year-end, the division had not yet been sold, but was considered held for sale. The net fair value (fair value minus costs to sell) of the division's assets at the end of the year was $11 million. The pretax income from operations of the division during 2024 was $4 million. Pretax income from continuing operations for the year totaled $14 million. The income tax rate is 25%. Ziltech reported net income for the year of $7.2 million. Required: Determine the book value of the division's assets on December 31, 2024. Note: Enter your answer in whole dollars and not in millions. For example, $4,000,000 rather than $4.

The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $19 million. The loss from operations of the segment during 2021 was $3.3 million. Pretax income from continuing operations for the year totaled $6.1 million. The income tax rate is 25%. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $20 million. Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)