Write the consolidated financial statements for company

Assignment Help Cost Accounting
Reference no: EM132511

Question:

On January 1, 20X9, Company A acquired 80 % of the common stock and 60 % of the preferred stock of Company B, for $400,000 and $60,000, respectively. At the time of acquisition, the fair value of the common shares of Company B held by the no controlling interest was $100,000. Company B's balance sheet contained the subsequent balances:

Preferred Stock ($5 par value) $100,000

Common Stock ($10 par value) 200,000

Retained Earnings 300,000

Total Stockholders' Equity $600,000

For the year ended December 31, 20X9, Company B reported total income of $100,000 and paid dividends of $40,000. The preferred stock is pays and cumulative an annual dividend of 10 %.

1. Based on the preceding information, what will the equity method income reported by Company A from its investment in Company B during 20X9?

A. $32,000

B. $30,000

C. $72,000

D. $48,000

2. Based on the preceding information, the eliminating entry to write the consolidated financial statements for Company A as of December 31, 20X9 can include a credit to Investment in Company B-Common Stock for:

A. 506,000

B. 440,000

C. 400,000

D. 500,000

3. Based on the preceding information, the eliminating entry to organize the consolidated financial statements for Company A as of December 31, 20X9 will include a credit to noncontrolling interest in net income of Company B for:

A. 140,000

B. 154,000

C. 152,000

D. 150,000

Reference no: EM132511

Questions Cloud

How much compensation expense related to restricted stock : How much compensation expense related to the restricted stock should Twilight report on its 2010 income statement?
Deadlock avoidance : i. Deadlock avoidance ii. Deadlock prevention and  iii. Deadlock detection
Write a program on simple game : Write a program on simple game.
Program on inline internal procedures deposit and withdraw : Program on Inline internal procedures deposit and withdraw.
Write the consolidated financial statements for company : Write the consolidated financial statements for Company
Uses of ionising radiation : What are the main differences between ionising radiations and non-ionising radiations. Uses of ionising radiation
What factors in computer design would affect the decision : What factors in computer design would affect the decision.
Example on intangible assets : Example on Intangible assets and the benefits are expected to last six years.
Why is an object (oop) a module : Why is an object (OOP) a module

Reviews

Write a Review

 

Cost Accounting Questions & Answers

  Determine the weighted average cost of capital

Determine the weighted average cost of capital and the weighted marginal cost (WMCC) for each range of total financin

  Determine the discount

Determine the discount. The amount of cash Hardcover, inc. actually had available to utilize from this loan was:

  Net salvage value

Evaluate Net Salvage Value

  Evaluate the value of one share of gis stock

Evaluate the value of one share of GIS stock using Dividends Valuation Approach.

  Cost-volume-profit analysis for non accountants

Preparing a seminar on cost-volume-profit analysis for non accountants

  Determine sarahs deductible transportation expense

Determine Sarah's deductible transportation expense, using the actual expense method.

  Compute the amount of the annual instalment

Compute the amount of the annual instalment

  What is the balance in cartwrights capital account

What is the balance in Cartwright's capital account at the end of that year?

  Difference between actual and normal cost

Write the adjusting entry needed to reconcile the difference between actual and normal cost

  What is brendas basis at the end of 2013

What is Brenda's basis(stock and/or debt) at the end of 2013?

  Evaluate the amount of translation adjustment

Evaluate whether the companys foreign operations have a predominant functional currency

  What can be the effect of the price increase

What can be the effect of the price increase on the firm's FCF for the year?

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