Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $206,000 in cash. Jasmine had a book value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition, Jasmine reported the following: 2019 2020 2021 Net Income $50,000 60,000 30,000 Dividends Declared $10,000 40,000 20,000 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow: Revenues-operating Expenses Equipment (net) Buildings (net) Common stock etained earnings, 12/31/21 a. Investment in Jasmine Company b. Equity in Subsidiary Earnings C. Consolidated Net Income d. Tyler Company $(310,000) 198,000 320,000 Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) g. Consolidated Common Stock h. 220,000 (290,000) (410,000) Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.) Consolidated Retained Earnings, 12/31/21 Jasmine Company $(104,000) 74,000 50,000 68,000 (50,000) (160,000) Amounts < Prev ‒‒‒‒‒‒‒‒‒ 6 of 6 # HH Next >
Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $206,000 in cash. Jasmine had a book value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition, Jasmine reported the following: 2019 2020 2021 Net Income $50,000 60,000 30,000 Dividends Declared $10,000 40,000 20,000 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow: Revenues-operating Expenses Equipment (net) Buildings (net) Common stock etained earnings, 12/31/21 a. Investment in Jasmine Company b. Equity in Subsidiary Earnings C. Consolidated Net Income d. Tyler Company $(310,000) 198,000 320,000 Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) g. Consolidated Common Stock h. 220,000 (290,000) (410,000) Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.) Consolidated Retained Earnings, 12/31/21 Jasmine Company $(104,000) 74,000 50,000 68,000 (50,000) (160,000) Amounts < Prev ‒‒‒‒‒‒‒‒‒ 6 of 6 # HH Next >
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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Transcribed Image Text:Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $206,000 in cash. Jasmine had a book
value of only $140,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $54,400 on
Jasmine's financial records. A building with a 20-year remaining life was overvalued by $10,000. Subsequent to the acquisition,
Jasmine reported the following:
2019
2020
2021
Net Income
$50,000
60,000
30,000
Dividends
Declared
$10,000
40,000
20,000
In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two
companies as of December 31, 2021, follow:
Revenues-operating
Expenses
Equipment (net)
Buildings (net)
Common stock
etained earnings, 12/31/21
a. Investment in Jasmine Company
b. Equity in Subsidiary Earnings
C. Consolidated Net Income
d.
Tyler
Company
$(310,000)
198,000
320,000
Consolidated Equipment (net)
e.
Consolidated Buildings (net)
f. Consolidated Goodwill (net)
g. Consolidated Common Stock
h.
220,000
(290,000)
(410,000)
Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.)
Consolidated Retained Earnings, 12/31/21
Jasmine
Company
$(104,000)
74,000
50,000
68,000
(50,000)
(160,000)
Amounts
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