Reference no: EM132923320
Question - Parent Company purchased 80 percent of Subsidiary Company's common stock on January 1, 2020. At that date, Subsidiary reported retained earnings of $160,000 and common stock of $40,000. The fair value of its buildings was $30,000 more than the book value.
Parent Company paid $200,000 to acquire Subsidiary shares. At that date, the noncontrolling interest had a fair value of $50,000. The remaining economic life of all of Subsidiary's assets was 5 years. The Net income of the subsidiary was $20,000 for the year ended 2020. The subsidiary paid out $2,000 of dividends during the year. Goodwill impairment by the end of the year was $1,000.
Prepare the equity method journal entries on the Parent's books for the purchase of the subsidiary, parent's share of subsidiary income, dividends received from subsidiary, and any amortization.
Prepare the workpaper elimination entries for the basic Investment account elimination entry, amortized excess value reclassification entry, and the excess value reclassification entry.
|
Producing the valve bodies in centrifuge casting
: Correlation is concerned with association; it can look at any two measured concepts and compare their relationships. These measured concepts are often referred
|
|
Publicly announce succession plan
: How would a leadership success plan best serve an organization? Is it important to publicly announce the succession plan? Why or why not?
|
|
Record the journal entries for the pension for the year
: The pension's assets earned $9,000,000, which is $400,000 above expectations. Record the journal entries for the pension for the year
|
|
What is the amount of the discount that will be taken
: The company pays the amount due within the discount period. What is the amount of the discount that will be taken
|
|
Prepare the equity method journal entries
: Prepare the equity method journal entries on the Parent's books for the purchase of the subsidiary, parent's share of subsidiary income, dividends received
|
|
New products are available to customers
: What procedure would you put in place when new products are available to customers?
|
|
Knowledge management
: Identify strategies to make virtual teams more productive. Identify and discuss in detail, Knowledge Management (KM).
|
|
Reason improving the general welfare
: What is an example of a company doing good by doing well-that is, making profits-and for that reason improving the general welfare? How can the example be conve
|
|
What is the current yield for messenger bonds
: Messenger, Inc. bonds have a 4% coupon rate with semiannual coupon payments and a $1,000 par value. What is the current yield for Messenger bonds
|