subject
Business, 09.04.2020 03:51 viga23456

On January 1, 2018, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $20,000 control premium. Carper reported common stock on that date of $420,000 with retained earnings of $252,000. A building was undervalued in the company's financial records by $28,000. This building had a ten-year remaining life. Copyrights of $80,000 were to be recognized and amortized over 20 years. Carper earned income and paid cash dividends as follows: Net income Dividends paid

2013 105,000 54,600

2014 134,400 61,600

2015 154,000 84,000On December 31, 2015, Vacker owed $30,800 to Carper. There have been no changes in Carper's common stock account since the acquisition.

Required:

If the equity method had been applied by Vacker for this acquisition, what were the consolidation entries needed as of December 31, 2020?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 20.06.2019 18:02, cicimarie2018
Caden and lily are divorced on march 3, 2016. for financial reasons, however, lily continues to live in caden's apartment and receives her support from him. caden does not claim lily as a dependent on his 2016 federal income tax return but does so on his 2017 return.
Answers: 2
image
Business, 21.06.2019 18:10, Annabeans1105
Grace period is a period of time before the credit card company starts charging late fees. truefalse
Answers: 1
image
Business, 22.06.2019 01:30, sophie5064
How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c. increase prices
Answers: 3
image
Business, 22.06.2019 11:00, igtguith
T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow
Answers: 1
You know the right answer?
On January 1, 2018, Vacker Co. acquired 70% of Carper Inc. by paying $650,000. This included a $20,0...

Questions in other subjects: