Inventory and beginning balance

Assignment Help Accounting Basics
Reference no: EM13148152

Ponderosa acquired 100% control of Sumac on January 1, 2009. The purchase differential included $30,000 attributable to undervaluation of Sumac's inventory. Both Ponderosa and Sumac account for inventory using LIFO. Sumac's December 31, 2009 inventory was greater than the beginning balance. Consolidated net income for 2009 will be:

a. $30,000 greater than if FIFO had been used.

b. $30,000 less than if FIFO had been used.

c. The same as if FIFO had been used.

d. Different under FIFO only if there had been a non-controlling interest

Reference no: EM13148152

Questions Cloud

Explain iron has a body-centered cubic unit cell : Iron has a body-centered cubic unit cell, and a density of 7.87 g/cm3. Calculate the edge length of the unit cell, in pm.
What is the pressure (in atm) exerted by a 2.00 mole sample : What is the pressure (in atm) exerted by a 2.00 mole sample of gas that occupies 2.50 L at 307.15K? The value of R = 0.0821 L atm mol - 1 K - 1 .
Estimate difference between mean prices of two brands : Use an appropriate 95 percent confidence interval to estimate the difference between the mean prices of the two brands of cd players. Do you think that the difference haspractical importance?
Rate of return to the investor : Calculate the proceeds (issue price) of Learned Inc.'s, bonds on January 1, 2010, assuming that the bonds were sold to provide a market rate of return to the investor.
Inventory and beginning balance : Ponderosa acquired 100% control of Sumac on January 1, 2009. The purchase differential included $30,000 attributable to undervaluation of Sumac's inventory. Both Ponderosa and Sumac account for inventory using LIFO. Sumac's December 31, 2009 inven..
Confidence interval for true proportion of students own car : When 306 students are randomly selected and surveyed it is found that 115 own a car. Find a 99% confidence interval for the true proportion of all college students who own a car.
What mass of ccl2f2 must evaporate : What mass of CCl2F2 must evaporate in order to freeze 115 g of water initially at 21 C? (The heat of fusion of water is 334 J/g the specific heat of water is 4.18 J/g *K .)
What is the most likely fate of genes : What is the most likely fate of genes that have undergone a duplication? How can natural selection maintain 2 or more copies of duplicate genes in populations?
Application of equivalent units in processing : Discuss the advantage and disadvantage of the application of equivalent units in processing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Corporations taxable income after drd

Included in this amount is dividend income of $60,000 from another corporation in which the taxpayer owns 90 percent of its stock outstanding. The corporation's taxable income (loss)after the DRD is?

  Pelarson case solution

Attaached PELARSON CASE SOLUTION, looking for general case analysis with- background information, issues and problems, ananlysis and conclusion. about 12 pages double spaced

  Which of the following conditions will not normally cause

An IT system is designed to ensure that management possesses the information it needs to carry out its functions through the integrated actions of.

  Deviations in accounting information

When analyzing financial statements it is important to recognize that accounting distortions can arise. Accounting distortions are those things that cause deviations in accounting information from the underlying economics.

  Calculating federal tax due

Sheniqua, a single taxpayer, had taxable income of $73,239. Her employer withheld $14,077 in federal income tax from her paychecks throughout the year. Using the tax tables

  Straight line-doubling declining and production methods

Classic Ions, nc. purchased manufacturing equipment with an expected useful life of five years or 5,000 hours of usage. The equipment was purchased on Janruary 1, 2008, for $460,000.

  Derivative instruments and investment classification

Write down the differences between traditional and derivative instruments. Why do companies use derivative instruments? Are derivatives a good investment?

  Calculate the unit contribution margin

Drake Company's income statement for the most recent year appears below: Calculate the unit contribution margin

  Basics of preferred and common shareholders

The board of directors declared and paid a $3,000 dividend in 2009. In 2010, $15,000 of dividends are declared and paid. What are the dividends received by the preferred and common shareholders in 2010?

  Tax levies in the ingham county tax agency fund

Record the tax levies in the Ingham County Tax Agency Fund. Record the collection from the 2011 tax levies in the Ingham County Tax Agency Fund and the specific liabilities owed each fund and unit (Round all amounts to the nearest whole dollar.)

  Describe the discrepancy between diamond foods

Describe the discrepancy between Diamond Foods, Inc.'s description of payments to walnut growers and what the farmers themselves say the payments are for

  Calculate ez maximum depreciation deduction

The books of EZ Company, a calendar year taxpayer, had the following assets and related information as of December 31, 2011. EZ's policy is to record depreciation on December 31 by way of a journal entry.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd