Advanced Accounting
Advanced Accounting
7th Edition
ISBN: 9781119373209
Author: JETER, Paul K. Chaney
Publisher: WILEY
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Chapter 7, Problem 15P

A)

To determine

Draft the consolidated statements work paper for the year ended December 31, 2020.

B)

To determine

Pass the necessary work paper entries.

C)

To determine

Analyze the consolidated balance obtained in the requirement A to those obtained in the problem 7-4.

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On January 1, 2023, Grouper Corporation purchased 30% of the common shares of Martz Limited for $201.000. Martz shares are not traded in an active market. The carrying amount of Martz's net assets was $540,000 on that date. Any excess of the purchase cost over Grouper's share of Martz's carrying amount is attributable to unrecorded intangibles with a 20-year life. During the year, Martz earned net income and comprehensive income of $78,000 and paid dividends of $15,600. The investment in Martz had a fair value of $206,000 at December 31, 2023. During 2024, Martz incurred a net loss and comprehensive loss of $83,000 and paid no dividends. At December 31, 2024, the fair value of the investment was $145,000 and the recoverable amount was $154,000. Assume that Grouper follows IFRS. Illustrate how the statement of comprehensive income is affected in 2023. (Enter answers in alphabetical order) Net income will include the of $ A and the of $
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On January 1, 2022, Matsui Co. purchased 42% of the outstanding voting common stock of Yankee, Inc. for $300,500. The book value of the acquired shares was $275,500. The excess of cost over book value is attributable to an intangible asset on Yankee's books that was undervalued and had a remaining useful life of five years. For the year ended December 31, 2022, Yankee reported net income of $125,750 and paid cash dividends of $25,700. What is the carrying value of Matsui's investment in Yankee at December 31, 2022?   Multiple Choice   $342,521.   $337,521.   $289,706.   $300,500.

Chapter 7 Solutions

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