Balfour corporation acquired 100 of tobac inc a foreign

Reference no: EM13576692

Balfour Corporation acquired 100% of Tobac Inc., a foreign corporation, for 33,000,000 FC. The acquisition, which was accounted for as a purchase, occurred on July 1, 20x5, when Tobac's equity, in FC, was as follows:

Common Stock $19,000,000 FC
Paid-in capital in excess of par 8,480,000
Retained Earnings 2,520,000

Any excess of of cost over book value is traeable to equipment which is to be depreciated over 10 years. Balfour uses the simple equity method to account for its investment in Tobac.

On April 1, 20X7, Tobac acquired additional equipment costing 4,000,000 FC. Equipment is depreciated by the straight-line method over 10 years. No other equipment had been acquired or disposed of since 20X4. Tobac employs the LIFO inventory method. Ending inventory on December 31, 20X7,consists of the following:

Acquired in the 1st quarter of 20X4 1,000,000 FC
Acquired in the 1st quarter of 20X5 500,000
Acquired in the 1st quarter of 20X7 6,500,000

Reference no: EM13576692

Questions Cloud

Management style the owner of the business jeff lester has : home safety inc.u2019s management has been trying for months to acquire one of its largest competitors in the home

Steve and heather decided to form a partnership on april 1 : steve and heather decided to form a partnership on april 1. steve invested 60000 and heather invested 40000net income

Abc company reported net sales revenue of 2880000 during : abc company reported net sales revenue of 2880000 during 2005 and an average collection period of 45.625 days. abc

X company manufactures a single product and estimates its : x company manufactures a single product and estimates its direct manufacturing costs each month. it is estimated that

Balfour corporation acquired 100 of tobac inc a foreign : balfour corporation acquired 100 of tobac inc. a foreign corporation for 33000000 fc. the acquisition which was

If maintenance hours in october are expected to be 3550 : x company uses the high-low method to predict maintenance costs each month with maintenance hours as the activity

If revenue and cost relationships are not expected to : in 2013 x company had revenue of 198000 and incurred the following costsdirect materials37620direct labor all

Apnea video rental store is considering the purchase of an : apnea video rental store is considering the purchase of an almost new minivan to deliver and pick up video tapes from

At the acquisition date sams total fair value including the : father inc. buys 80 percent of the outstanding common stock of sam corporation on january 1 2013 for 760960 cash. at

User Account

All Pages