Phelps Co. uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp. At the time of the acquisition, the fair values of the net asset required approximated their book values.  Based upon the following information, what is consolidated net income? Phelps internally generated income: $250,000 Shore internally generated income: $  50,000 Intercompany profit on Shore beginning inventory: $  10,000 Intercompany profit on Shore ending inventory: $  15,000   a. $300,000 b. $295,000 c. $286,000 d. $305,000

The following are several figures reported for Allister and Barone as of December 31, 2021 Allister Barone $ 600,000 $ 400,000 1,200,000 1,000,000 not given 600,000 280,000 Inventory Sales Investment income Cost of goods sold Operating expenses 500,000 350,000 Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary's fair value at the acquisition date Allister noted that Barone had developed a customer list worth $76,000 that was unrecorded on its accounting records and had a five- year remaining life. Any remaining excess fair value over Barone's book value was attributed to goodwill. During 2021, Barone sells inventory costing $140,000 to Allister for $200,000. Of this amount, 15 percent remains unsold in Allister's warehouse at year-end Determine balances for the following items that would appear on Allister's consolidated financial statements for 2021 4 Inventory Sales Cost of goods sold Operating expenses Net income attributable to…

House Corporation has been operating profitably since its creation in 1960. At the beginning of 2016, House acquired a 70 percent ownership in Wilson Company. At the acquisition date, House prepared the following fair-value allocation schedule:                 Consideration transferred for 70% interest in Wilson         $ 707,000 Fair value of the 30% noncontrolling interest           303,000 Wilson business fair value         $ 1,010,000 Wilson book value           790,000 Excess fair value over book value         $ 220,000 Assignments to adjust Wilson’s assets to fair value:             To buildings (20-year remaining life) $ 60,000         To equipment (4-year remaining life)   (20,000 )       To franchises (10-year remaining life)   40,000       80,000 To goodwill (indefinite life)         $ 140,000     House regularly buys inventory from Wilson at a markup of 25 percent more than cost. House's purchases during 2016 and 2017 and related ending inventory…

CASE 1 Presented below are the financial balances for the BonGiovi Company and the Terens Company as of December 31, 2017, immediately before BonGiovi acquired Terens. Also included are the fair values for Terens Company's net assets at that date (thousands of US$). Terens Compute consolidated retained earnings as a result of this acquisition. A) $1,160. Compute consolidated revenues immediately following the acquisition. BonGiovi Book Value Terens Book Value B) $1,170. 31.12.2017 31.12.2017 Fair Value 31.12.2017 C) $1,265. Cash 870 240 240 Receivables 660 600 600 D) $1,280. Inventory 1,230 420 580 Land 1,800 260 250 E) $1,650. Buildings (Net) 1,800 540 650 Equipment (net) 660 380 400 Accounts Payable (570) (240) (240) Accrued expenses (270) (60) Long term Liabilities (2,700) (1,020) (60) (1,120) Common Stock (1,980) A) $3,540. ($20par) B) $2,880. Common Stock ($5 (420) par) C) $1,170. Additional paid in (210) (180) capital D) $1,650. Retained earnings (1,170) (480) Revenue (2,880)…