Parent Corporation acquired 90 percent of the outstanding voting stock of Subsidiary, Inc., on January 1, 2020, whenSubsidiary had a net book value of $610,000. Any excess fair value was assigned to intangible assets and amortized ata rate of $4,000 per year.Parent's 2021 net income before consideration of its relationship with Subsidiary (and before adjustments for intra-entitysales) was $510,000. Subsidiary reported net income of $320,000. Parent declared $200,000 in dividends during thisperiod; Subsidiary paid $61,000. At the end of 2021, selected figures from the two companies' balance sheets were asfollows:Parent Subsidiary$350,000 $111,000810,000 410,000Equipment (net) 610,000 510,000InventoryLandIn 2020, Subsidiary sold land costing $51,000 to Parent for $92,000. On the 2021 consolidated balance sheet, whatvalue should be reported for land?Complete this question by entering your answers in the tabs below.RequiredOn the 2021 consolidated balance sheet, what value should be reported for land?Consolidated landbalance< Requirednext >

The consolidated balance sheet is used to show the financial position of the parent company as well…

Answered: Required On the 2021 consolidated…

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Accounting

Required On the 2021 consolidated balance sheet, what value should be reported for land?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $470,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $5,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $370,000. Scenic reported net income of $180,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $47,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 210,000 $ 97,000 Land 670,000 270,000 Equipment (net) 470,000 370,000 During 2020, intra-entity sales of $110,000 (original cost of $56,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $160,000 in intra-entity sales were made…
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $610,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $4,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $510,000. Scenic reported net income of $320,000. Placid Lake declared $200,000 in dividends during this period; Scenic paid $61,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 350,000 $ 111,000 Land 810,000 410,000 Equipment (net) 610,000 510,000 During 2020, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $300,000 in intra-entity sales were made…
Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $440,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $340,000. Scenic reported net income of $150,000. Placid Lake declared $140,000 in dividends during this period; Scenic paid $44,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 180,000 $ 94,000 Land 640,000 240,000 Equipment (net) 440,000 340,000 During 2020, intra-entity sales of $95,000 (original cost of $50,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $130,000 in intra-entity sales were made…
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 202O, when Scenic had a net book value of $540,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $7,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra- entity sales) was $440,000. Scenic reported net income of $250,000. Placid Lake declared $130,000 in dividends during this period; Scenic paid $54,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic $ 280,000 740,000 540,000 $ 104,000 340,000 440,000 Inventory Land Equipment (net) During 2020, intra-entity sales of $145,000 (original cost of $70,000) were made. Only 20 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $230,000 in intra-entity sales were made with an original cost of $73,000. Of this…
Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $500,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $8,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $400,000. Scenic reported net income of $210,000. Placid Lake declared $200,000 in dividends during this period; Scenic paid $50,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 240,000 $ 100,000 Land 700,000 300,000 Equipment (net) 500,000 400,000 During 2020, intra-entity sales of $125,000 (original cost of $62,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $190,000 in intra-entity sales were made…
Placid Lake Corporation acquired 70 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $500,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $8,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $400,000. Scenic reported net income of $210,000. Placid Lake declared $200,000 in dividends during this period; Scenic paid $50,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 240,000 $ 100,000 Land 700,000 300,000 Equipment (net) 500,000 400,000 During 2020, intra-entity sales of $125,000 (original cost of $62,000) were made. Only 10 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $190,000 in intra-entity sales were made…
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $400,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $5,000 per year. Placid Lake's 2021 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $300,000. Scenic reported net income of $110,000. Placid Lake declared $100,000 in dividends during this period; Scenic paid $40,000. At the end of 2021, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 140,000 $ 90,000 Land 600,000 200,000 Equipment (net) 400,000 300,000 During 2020, intra-entity sales of $90,000 (original cost of $54,000) were made. Only 20 percent of this inventory was still held within the consolidated entity at the end of 2020. In 2021, $120,000 in intra-entity sales were made…
On January 2, 2021, ABC Co. acquired 80% of XYZ Co. ordinary shares for P810,000. An amount of P37,500 of the excess is attributable to goodwill and the balance to a depreciable assets with an economic life of ten years. NCI is measured at fair value on the date of acquisition. On the date of acquisition, shareholder's equity accounts of the two entities were as follows: АВС Ordinary Shares - 1,312,500 Retained Earnings - 1,950,000 XYZ Ordinary Shares - 300,000 Retained Earnings - 525,000 On December 31, 2021, XYZ reported net income of 131,250 and paid dividends of P172,500. Goodwill have been impaired and should be reported at P7,500 on December 31, 2021. #6. What is the non-controlling interest in profit of XYZ on December 31, 2021? Select the correct response: 26,250.00 17,250.00 23,250.00 23,437.50
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On January 2, 2021. PABC corporation acquired 75% of the outstanding ordinaryshares of SDEF Company for P513,000 cash, excluding direct acquisition costs.The investment was accounted for by the cost method. On January 2, 2021,SDEF’s identifiable net assets (book value and fair value) were P570,000. SDEF’snet income for the year ended December 31, 2021 was P304,000. During 2021,PABC received P21,600 cash dividends from SDEF. There were no other intercompany transactions. The balance of the Non-controlling interest in Net assetsof subsidiary account on December 31, 2021 is A. 211,300B. 76,000C. 218,300D. 218,500
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $610,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $4,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $510,000. Scenic reported net income of $320,000. Placid Lake declared $200,000 in dividends during this period; Scenic paid $61,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 350,000 $ 111,000 Land 810,000 410,000 Equipment (net) 610,000 510,000 During 2017, intra-entity sales of $180,000 (original cost of $84,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2017. In 2018, $300,000 in intra-entity sales were made…
Placid Lake Corporation acquired 90 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2017, when Scenic had a net book value of $580,000. Any excess fair value was assigned to intangible assets and amortized at a rate of $6,000 per year. Placid Lake's 2018 net income before consideration of its relationship with Scenic (and before adjustments for intra-entity sales) was $480,000. Scenic reported net income of $290,000. Placid Lake declared $170,000 in dividends during this period; Scenic paid $58,000. At the end of 2018, selected figures from the two companies' balance sheets were as follows: Placid Lake Scenic Inventory $ 320,000 $ 108,000 Land 780,000 380,000 Equipment (net) 580,000 480,000 During 2017, intra-entity sales of $165,000 (original cost of $78,000) were made. Only 30 percent of this inventory was still held within the consolidated entity at the end of 2017. In 2018, $270,000 in intra-entity sales were made…