Cost method in the preparation of a consolidated workpaper

Reference no: EM13159222

P Company purchased 80% of the outstanding common stock of S Company on May 1, 2011, for a cash payment of $1,272,000. S Company's December 31, 2010 balance sheet reported common stock of $800,000 and retained earnings of $540,000. During the calendar year 2011, S Company earned $840,000 evenly throughout the year and declared a dividend of $300,000 on November 1. What is the amount needed to establish reciprocity under the cost method in the preparation of a consolidated workpaper on December 31, 2011?

a) $208,000

b) $260,000

c) $248,000

d) $432,000

Reference no: EM13159222

Questions Cloud

What is a marketing information system : What is a marketing information system and what should it provide? How is the value of a marketing information system measured?

What is the change in the number of unemployed people : What is the change in the number of unemployed people in this particular month and what is the change in the number of employed people in the same period?

Competitive intelligence activities : What competitive intelligence activities can technology help a company to perform better? Are there limitations? Which ones will you choose for which industries? Explain

Non-controlling interest in the total income : Year 3 amortization of differences between current fair values and carrying amounts of Scooter's identifiable net assets at the date of the business combination was $45,000. The noncontrolling interest in net income of Scooter for Year 3 was:

Cost method in the preparation of a consolidated workpaper : S Company earned $840,000 evenly throughout the year and declared a dividend of $300,000 on November 1. What is the amount needed to establish reciprocity under the cost method in the preparation of a consolidated workpaper on December 31, 2011?

Virtual and physical addresses : The page table shown in Figure 9.32 is for a system with 16-bit virtual and physical addresses and with 4,096-byte pages. The reference bit is set to 1 when the page has been referenced. Periodically, a thread zeroes out all values of the reference b..

Write a program that reads the data in the file and displays : Write a program that reads the data in the file and displays the car number, miles driven, gallons used and the miles per gallon for each car.

Initialize an array and fill the array with the gpa values. : Write a program in java that asks user input (using a loop) for name of 10 student and the corresponding grade point averages (GPAs). Initialize an array and fill the array with the GPA values.

Asks the user for the name of an input file and translates : Write a C++ program that asks the user for the name of an input file and translates the contents of that input file using ROT13. Your main function should be responsible for reading the input file and coordinating calls to a value-returning functio..

User Account

All Pages