Determine balance sheet, Financial Accounting

Determine balance sheet:

Income Statements

Year Ended December 31, 20X8

 

Insure Co.

Go-med Co.

Sales

$3,900,000

$1,560,000

Other income

260,000

91,000

Gain on sale of land

___-___

130,000

 

4,160,000

1,781,000

Cost of sales

1,820,000

728,000

Operating expenses

780,000

559,000

Income tax

520,000

195,000

 

3,120,000

1,482,000

    Net income

$1,040,000

 299,000

 

Insure acquired 40% of the common shares of Go-med in 20X2 for $1,072,500. 

For 20X8, Insure amortized its acquisition differential as follows:

                   Buildings                                  $ 11,700

                   Long-term liabilities                    (16,250)

                   Goodwill impairment loss          16,900

                                                                   $ 12,350

During 20X8, Go-med paid royalties of $162,500 to Insure, which Insure included in its other income.

During 20X8, Go-med sold land to a third party.  It had acquired the land 3 years ago from Insure.  At that time, Insure had recorded a profit on the sale of $29,250.

During 20X8, Go-med declared and paid dividends of $104,000.

Both Insure and Go-med pay taxes at an average rate of 40%.

Required:

Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements.  Prepare a 20X8 consolidated income statement for Insure using proportionate consolidation.

Posted Date: 2/12/2013 4:58:18 AM | Location : United States







Related Discussions:- Determine balance sheet, Assignment Help, Ask Question on Determine balance sheet, Get Answer, Expert's Help, Determine balance sheet Discussions

Write discussion on Determine balance sheet
Your posts are moderated
Related Questions
A company is considering investing some independent proposals, The proposals with their expected net present values and standard deviations are given in the following table.

Present Value of a Bond 1. Assume that you wish to purchase a 20 year bond that has a maturity value of $1,000 and makes semiannual interest payments of $40.  If you require a

i need help with my project

Illustrations of Accounting Policies A Ltd., has decided to change its policy of writing off borrowing costs to capitalizing the same. As at 31st December, 2003, the company had

Individuals commonly prefer possession of cash immediately or in the present moment quite than the same amount at any time in the future. Such time preference is fundamentally due

You are considering whether or not to go to graduate school. Well... there are many things to consider, of course, such as the type of job you would thus get, the opportunity to li

How should I handle Booking an invoice in one month for Raw material that has not been received until the following month?

Inventory Control Ratios For reasons of monitoring the effectiveness of inventory management this is useful to look at the subsequent ratios and indexes: Overall Inventory Tu

Given information: Offered a $20 million commercial loan priced using a 3month LIBOR index+100bp. After some preliminary research, using a money center bank''s swap trading desk

Options with discontinuous payoffs are called Binary options. An example is the cash-or-nothing callwhich pays nothing if the stock price at the maturity of the option is below the