Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 4, Problem 33P
a.
To determine
Identify the consolidation entries are needed as of December 31, 2018 if Company T has applied the equity method.
b.
To determine
Identify Entry *C which is needed for a 2018 consolidation if Company T has applied the initial value method.
c.
To determine
Identify Entry *C which is needed for a 2018 consolidation if Company T has applied the partial equity method.
d.
To determine
Identify the non-controlling interest balances will appear in consolidated financial statements for 2018.
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On January 1, 2022, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor's shares
continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained
earnings of $180,000. A patent was undervalued in the company's financial records by $30,000. This patent had a five-year remaining
life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests. Bandmor earns
net income and declares cash dividends as follows:
Year Net Income
$ 75,000
2022
2023
96,000
2024
110,000
On December 31, 2024, Telconnect owes $22,000 to Bandmor.
Dividends
$ 39,000
44,000
60,000
Required:
a. If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2024?
b. If Telconnect has applied the initial value method, what Entry *C is needed for a 2024 consolidation?
c. If Telconnect has applied the partial equity…
Pitino acquired 90 percent of Brey’s outstanding shares on January 1, 2016, in exchange for $342,000 in cash. The subsidiary’s stockholders’ equity accounts totaled $326,000 and the noncontrolling interest had a fair value of $38,000 on that day. However, a building (with a nine-year remaining life) in Brey’s accounting records was undervalued by $18,000. Pitino assigned the rest of the excess fair value over book value to Brey’s patented technology (six-year remaining life).Brey reported net income from its own operations of $64,000 in 2016 and $80,000 in 2017. Brey declared dividends of $19,000 in 2016 and $23,000 in 2017.Brey sells inventory to Pitino as follows:At December 31, 2018, Pitino owes Brey $16,000 for inventory acquired during the period.The following separate account balances are for these two companies for December 31, 2018, and the year then ended. Credits are indicated by parentheses.Answer each of the following questions:a. What was the annual amortization resulting…
On January 1, 2019, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor’s shares continued to trade at a total value of $210,000. The new subsidiary reported common stock of $300,000 on that date, with retained earnings of $180,000. A patent was undervalued in the company’s financial records by $30,000. This patent had a five-year remaining life. Goodwill of $190,000 was recognized and allocated proportionately to the controlling and noncontrolling interests. Bandmor earns net income and declares cash dividends as follows:
Year
Net Income
Dividends
2019
$
75,000
$
39,000
2020
96,000
44,000
2021
110,000
60,000
On December 31, 2021, Telconnect owes $22,000 to Bandmor.
If Telconnect has applied the equity method, what consolidation entries are needed as of December 31, 2021?
If Telconnect has applied the initial value method, what Entry *C is needed for a 2021 consolidation?
If Telconnect has applied the…
Chapter 4 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Assuming that Pride, in its internal records,...Ch. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 43PCh. 4 - Prob. 44PCh. 4 - Prob. 1DYSCh. 4 - Prob. 2DYSCh. 4 - Costco Wholesale Corporation owns and operates...
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