Patriots Co. purchases 80 percent of Seahawk Company on January 1, 20X1, when Patriots’ retained earnings balance is $725,000 and Seahawks' is $200,000. During 20X1, Seahawk reports $80,000 of net income and declares $10,000 of dividends. Patriots reports $425,000 of operating income and included its share of equity-method income from its 80 percent interest in Seahawk in its net income; Patriots declares dividends of $80,000.

Davis acquires 100% of Ramos on January 1, 2009, Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has net income of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a book value of $3,000,000 and a fair value of $4,000,000. At that date, Ramos had a building witha book value of $800,000 and fair value of $900,000. Both buildings have a remaining useful life of 5 years (assume straight line depreciation). At Dec. 3, 2013 Davis had book value of building of 5,000,000 and Fair Value of 6,000,000.Ramos had book value building of 2,000,000 and fair value of 1,500,000 a. Prepare consolidation worksheet "D" to reflect the necessary adjustment for dividends. b. How much are consolidated dividends for 2013 c. Prepare worksheet entry "A" at December 31, 2013 (assume there is no goodwill). d. How much is…

Davis acquires 100% of Ramos on January 1st, 2009. Ramos will be operated as a separate subsidiary. Davis will use the equity method to account for its investment in Ramos. In 2013, Davis has net income of $400,000 and pays dividends of $100,000. Ramos has NI of $200,000 and pays dividends of $75,000. At acquisition date, Davis has a building with a. BV of $800,000 and FV of $900,000. Both buildings have a remaining useful life of 10 years (assume straight line depreciation). At December 31, 2013 Davis had book value (BV) of Building of 5,000,000 and fair value (FV) of 6,000,000. Ramos had BV of Building of 2,000,000 and FV of 1,500,000. A) Prepare Consolidation worksheet D to reflect the necessary adjustment for dividends. B) How much are consolidated dividends for 2013 C) Prepare worksheet entry A at December 31, 2013(assume there is no goodwill)

Peanut Company acquired 100 percent of Snoopy Company’s outstanding common stock for $300,000 on January 1, 20X8, when the book value of Snoopy’s net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of December 31, 20X8, are as follows:   Peanut Company Snoopy Company Debit Credit Debit Credit Cash $ 130,000   $ 80,000   Accounts Receivable 165,000   65,000   Inventory 200,000   75,000   Investment in Snoopy Company 355,000   0   Land 200,000   100,000   Buildings and Equipment 700,000   200,000   Cost of Goods Sold 200,000   125,000   Depreciation Expense 50,000   10,000   Selling and Administrative Expense 225,000   40,000   Dividends Declared 100,000   20,000   Accumulated Depreciation   $ 450,000   $ 20,000 Accounts Payable   75,000   60,000 Bonds Payable   200,000   85,000 Common Stock   500,000   200,000 Retained Earnings   225,000   100,000 Sales   800,000…