Reference no: EM132493270
Question - Chapman Company obtains 100 percent of Abernethy Company's stock on January 1, 2017. As of that date, Abernethy has the following trial balance:
Debit Credit
Accounts payable $50,300
Accounts receivable $47,500
Additional paid-in capital 50,000
Buildings (net) (4-year remaining life) 201,000
Cash and short-term investments 61,750
Common stock 250,000
Equipment (net) (5-year remaining life) 447,500
Inventory 127,500
Land 124,000
Long-term liabilities (mature 12/31/20) 162,000
Retained earnings, 1/1/17 514,850
Supplies 17,900
Totals $1,027,150 $1,027,150
During 2017, Abernethy reported net income of $97,000 while declaring and paying dividends of $12,000. During 2018, Abernethy reported net income of $141,250 while declaring and paying dividends of $48,000.
Assume that Chapman Company acquired Abernethy's common stock for $919,830 in cash. Assume that the equipment and long-term liabilities had fair values of $471,000 and $131,120, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.
Prepare consolidation worksheet entries for December 31, 2017, and December 31, 2018.
|
Should society punish hate speeches with criminal penalties
: Should society punish hate speeches with criminal penalties? To what degree are colleges and universities justified in trying to discipline
|
|
What was the firm capital spending
: December 31, 2000 and $14.5 million on December 31,2001. If the depreciation expense for 2001 was $630,000, what was the firm`s 2001 capital spending?
|
|
How much income tax does the taxpayer owe
: $11,000, and tax credits of $2,000. How much income tax does the taxpayer owe if the country has a flat tax rate of 14%? Show all work.
|
|
Daily conversational style and academic writing
: What are the differences between daily conversational style and academic writing
|
|
Prepare consolidation worksheet entries for December
: Assume that Chapman Company acquired Abernethy's common stock for $919,830 in cash. Prepare consolidation worksheet entries for December 31, 2017
|
|
Public transportation system
: Public Transportation System: Introduction or Expansion. Why is it important? What are the benefits? How does it affect health? Please include citation.
|
|
What is the effective rate for the year
: A financial institution quotes a rate of 4.74 percent compounded daily. What is the effective rate for the year using a 365 day year?
|
|
Which growth stage best describes the pattern of cash flows
: Which growth stage best describes the pattern of cash flows? A company has the following cash flows: Cash from operations,Cash from investing activities
|
|
What is stored value card liability
: What is stored value card liability and current portion of deferred revenue? Explain each and indicate how these related to the concept of Revenue Recognition
|