EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
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Chapter 7, Problem 7.30P
(a)
To determine
Introduction: Consolidated net is the total net income of parent company excluding any income from subsidiaries. Consolidated net income is reported on the consolidated income statement for periods after acquisition. There is also intercompany transfer between parent company and its subsidiaries.
(b)
To determine
Introduction: Consolidated net is the total net income of parent company excluding any income from subsidiaries. Consolidated net income is reported on the consolidated income statement for periods after acquisition. There is also intercompany transfer between parent company and its subsidiaries.
Consolidated entries for intercompany transfers.
(c)
To determine
Introduction: Consolidated net is the total net income of parent company excluding any income from subsidiaries. Consolidated net income is reported on the consolidated income statement for periods after acquisition. There is also intercompany transfer between parent company and its subsidiaries.
Net income of S' incorporation
(d)
To determine
Introduction: Consolidated net is the total net income of parent company excluding any income from subsidiaries. Consolidated net income is reported on the consolidated income statement for periods after acquisition. There is also intercompany transfer between parent company and its subsidiaries.
Separate Net income of P’s 20X7.
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In its 20X7 consolidated income statement, Plate Development Company reported consolidated net income of $962,000 and $42,000 of income assigned to the 30 percent noncontrolling interest in its only subsidiary, Subsidence Mining Incorporated During the year, Subsidence had sold a previously mined parcel of land to Plate for a new housing development; the sales price to Plate was $475,000, and the land had a carrying amount at the time of sale of $590,000. At the beginning of the previous year, Plate had sold excavation and grading equipment to Subsidence for $267,000; the equipment had a remaining life of 6 years as of the date of sale and a book value of $216,000. The equipment originally had cost $360,000 when Plate purchased it on January 2, 20X2. The equipment never was expected to have any salvage value.
Plate had acquired 70 percent of the voting shares of Subsidence eight years earlier when the fair value of its net assets was $270,000 higher than book value, and the fair value…
Compute for the consolidated net income. *
Separate income statements of Quail Corporation and its 80%-owned
subsidiary, Savannah Corporation, for 2005 are as follows:
Quail
Savannah
Sales Revenue
$
$
300,000
800,000
35,000
Gain on equipment
Gain on land
Cost of sales
400,000)
20,000
160,000 )
60,000)
100,000
265,000 )
Other expenses
Separate incomes
$
170,000
$
Additional information:
1. Quail acquired its 80% interest in Savannah Corporation when the
book values were equal to the fair values.
2. The gain on equipment relates to equipment with a book value of
$85,000 and a 7-year remaining useful life that Quail sold to
Savannah for $120,000 on January 2, 2005. The straight-line
depreciation method was used.
3. In 2005, Savannah sold land to an outside entity for $80,000.
The land was acquired from Quail in 2003 for $60,000. The
original cost of the land to Quail was $35,000.
Your answer
(
9. A parent company sells land to its wholly-owned subsidiary in a prior year, reporting a gain of $20,000. In the
current year, the subsidiary sells the land to an outside developer and reports a gain of $50,000. In the consolidation
working paper at the end of the current year, the elimination of this transaction will result in: Select one: a. A $70,000
decrease in land b. A $20,000 decrease in beginning retained earnings c. A $20,000 increase in gain on sale of land d.
A $50,000 increase in investment in subsidiary
Chapter 7 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 7 - Prob. 7.1QCh. 7 - Prob. 7.2QCh. 7 - Prob. 7.3QCh. 7 - Prob. 7.4QCh. 7 - Prob. 7.5QCh. 7 - Prob. 7.6QCh. 7 - Prob. 7.7QCh. 7 - Prob. 7.8QCh. 7 - Prob. 7.9QCh. 7 - Prob. 7.10Q
Ch. 7 - Prob. 7.11QCh. 7 - Prob. 7.12QCh. 7 - Prob. 7.13QCh. 7 - Prob. 7.14QCh. 7 - Prob. 7.15QCh. 7 - Prob. 7.16QCh. 7 - Prob. 7.17QCh. 7 - Prob. 7.18AQCh. 7 - Prob. 7.1CCh. 7 - Prob. 7.2CCh. 7 - Prob. 7.3CCh. 7 - Prob. 7.4CCh. 7 - Prob. 7.5CCh. 7 - Prob. 7.1.1ECh. 7 - Prob. 7.1.2ECh. 7 - Prob. 7.1.3ECh. 7 - Prob. 7.1.4ECh. 7 - Prob. 7.1.5ECh. 7 - Prob. 7.2.1ECh. 7 - Prob. 7.2.2ECh. 7 - Prob. 7.2.3ECh. 7 - Prob. 7.2.4ECh. 7 - Prob. 7.2.5ECh. 7 - Prob. 7.2.6ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Transfer of Depreciable Asset at Year-End Pitcher...Ch. 7 - Prob. 7.9ECh. 7 - Sale of Equipment to Subsidiary in Current Period...Ch. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.17ECh. 7 - Prob. 7.18ECh. 7 - Prob. 7.19ECh. 7 - Prob. 7.20ECh. 7 - Prob. 7.21ECh. 7 - Prob. 7.22ECh. 7 - Prob. 7.23AECh. 7 - Prob. 7.24PCh. 7 - Prob. 7.25PCh. 7 - Prob. 7.26PCh. 7 - Prob. 7.27PCh. 7 - Prob. 7.28.1PCh. 7 - Prob. 7.28.2PCh. 7 - Prob. 7.28.3PCh. 7 - Prob. 7.28.4PCh. 7 - Prob. 7.29PCh. 7 - Prob. 7.30PCh. 7 - Prob. 7.31PCh. 7 - Prob. 7.32PCh. 7 - Prob. 7.33PCh. 7 - Prob. 7.34PCh. 7 - Prob. 7.35PCh. 7 - Prob. 7.37PCh. 7 - Prob. 7.38PCh. 7 - Prob. 7.41AP
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