Business, 28.07.2020 21:01 rogersdeloris1ovgm3b

On December 31, 20X6, Print Corporation and Size Company entered into a business combination in which Print acquired all of Size’s common stock for $989,000. At the date of combination, Size had common stock outstanding with a par value of $115,000, additional paid in capital of $406,000, and retained earnings of $194,000. The fair values and book values of all Size’s assets and liabilities were equal at the date of combination, except for the following: Book Value Fair Value
Inventory 59,000 64,000
Land 80,000 168,000
Buildings 414,000 501,000
Equipment 501,000 573,000
The buildings had a remaining life of 16 years, and the equipment was expected to last another 6 years. In accounting for the business combination, Print decided to use push-down accounting on Size’s books.
During 20X7, Size earned net income of $97,000 and paid a dividend of $70,000. All of the inventory on hand at the end of 20X6 was sold during 20X7. During 20X8, Size earned net income of $99,000 and paid a dividend of $70,000.
Required:
a. Record the acquisition of Size's stock on Print's books on December 31, 20X6.
Record the initial investment in Size Co.
b. Record any entries that would be made on December 31, 20X6, on Size’s books related to the business combination if push-down accounting is employed.
Record the evaluation of the assets of Size Co.
c. Present all consolidating entries that would appear in the worksheet to prepare a consolidated balance sheet immediately after the combination.
Record the basic consolidation entry.
d. Present all entries that Print would record during 20X7 related to its investment in Size if Print uses the equity-method of accounting for its investment.
Record the dividend received from Size Co.
Record the equity method income/loss.
e. Present all consolidating entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the year 20X7.
Record the basic consolidation entry.
f. Present all consolidating entries that would appear in the worksheet to prepare a full set of consolidated financial statements for the year 20X8.
Record the basic consolidation entry.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 03:20, limelight11

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.

Answers: 3

continue

Business, 22.06.2019 10:10, hausofharris

Karen is working on classifying all her company’s products in terms of whether they have strong or weak market share and whether this share is in a slow or growing market. what type of strategic framework is she using?

Answers: 2

continue

Business, 22.06.2019 20:00, 2965276513

Afirm is producing at minimum average total cost with its current plant. draw the firm's long-run average cost curve. label it. draw a point on the lrac curve at which the firm cannot lower its average total cost. draw the firm's short-run average total cost curve that is consistent with the point you have drawn. label it. g

Answers: 2

continue

Business, 22.06.2019 23:20, hernandezeileen20

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?

Answers: 3

continue

You know the right answer?

On December 31, 20X6, Print Corporation and Size Company entered into a business combination in whic...