Question

Paper Corporation owns 75 percent of Scissor Company's stock. On July 1, 20X8, Paper sold a...

Paper Corporation owns 75 percent of Scissor Company's stock. On July 1, 20X8, Paper sold a building to Scissor for $33,000. Paper had purchased this building on January 1, 20X6, for $36,000. The building's original eight-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The building's residual value is considered negligible.

A.) Based on the information provided, in the preparation of the 20X8 consolidated financial statements, building will be _____ in the consolidating entries.

B.) Based on the information provided, the gain on sale of the building eliminated in the consolidated financial statements for 20X8 is:

C.) Based on the information provided, while preparing the 20X8 consolidated income statement, depreciation expense will be:

D.) Based on the information provided, in the preparation of the 20X9 consolidated income statement, depreciation expense will be:

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs...
Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced 50,000 chairs at a cost of $79 each and sold 35,000 chairs to Salt for $90 each. Salt sold 18,000 of the chairs to unaffiliated companies for $117 each prior to December 31, 20X8, and sold the remainder in early 20X9 to unaffiliated companies for $130 each. Both companies use perpetual inventory systems. 23) Based on the information given above, what amount of cost of goods...
Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold...
Light Corporation owns 80 percent of Sound Company's voting shares. On January 1, 20X7, Sound sold bonds with a par value of $300,000 when the market rate was 7 percent. Light purchased two thirds of the bonds; the remainder was sold to nonaffiliates. The bonds mature in ten years and pay an annual interest rate of 6 percent. Interest is paid semiannually on June 30 and Dec 31. 1.) Based on the information given above, what amount of interest expense...
On January 1, 20X8, Gregory Corporation acquired 90 percent of Nova Company's voting stock, at underlying...
On January 1, 20X8, Gregory Corporation acquired 90 percent of Nova Company's voting stock, at underlying book value. The fair value of the noncontrolling interest was equal to 10 percent of the book value of Nova at that date. Gregory uses the equity method in accounting for its ownership of Nova. On December 31, 20X8, the trial balances of the two companies are as follows: Gregory Corp Nova Company Dr Cr Dr Cr Current Assets 200000 120000 Depreciable Assets 300000...
Pie Bakery owns 70 percent of Slice Products Company’s stock. On January 1, 20X9, inventory reported...
Pie Bakery owns 70 percent of Slice Products Company’s stock. On January 1, 20X9, inventory reported by Pie included 28,000 bags of flour purchased from Slice at $9 per bag. By December 31, 20X9, all the beginning inventory purchased from Slice Products had been baked into products and sold to customers by Pie. There were no transactions between Pie and Slice during 20X9. Both Pie Bakery and Slice Products price their sales at cost plus 50 percent markup for profit....
Holiday Bakery owns 70 percent of Farmco Products Company’s stock. On January 1, 20X9, inventory reported...
Holiday Bakery owns 70 percent of Farmco Products Company’s stock. On January 1, 20X9, inventory reported by Holiday included 23,000 bags of flour purchased from Farmco at $21 per bag. By December 31, 20X9, all the beginning inventory purchased from Farmco Products had been baked into products and sold to customers by Holiday. There were no transactions between Holiday and Farmco during 20X9. Both Holiday Bakery and Farmco Products price their sales at cost plus 50 percent markup for profit....
Power Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of...
Power Corporation's controller has just finished preparing a consolidated balance sheet, income statement, and statement of changes in retained earnings for the year ended December 31, 20X9. Power owns 80 percent of Setwork Corporation's stock, which it acquired at underlying book value on November 1, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of Setwork Corporation's book value. The following information is available: Consolidated net income for 20X9 was $160,000. Setwork reported...
Pie Corporation acquired 75 percent of Slice Company’s ownership on January 1, 20X8, for $96,000. At...
Pie Corporation acquired 75 percent of Slice Company’s ownership on January 1, 20X8, for $96,000. At that date, the fair value of the noncontrolling interest was $32,000. The book value of Slice’s net assets at acquisition was $100,000. The book values and fair values of Slice’s assets and liabilities were equal, except for Slice’s buildings and equipment, which were worth $20,000 more than book value. Accumulated depreciation on the buildings and equipment was $30,000 on the acquisition date. Buildings and...
Power Corporation owns 75 percent of Swift Company’s stock. Swift provides health care services to its...
Power Corporation owns 75 percent of Swift Company’s stock. Swift provides health care services to its employees and those of Power. During 20X2, Power recorded $43,000 as health care expense for medical care given to its employees by Swift. Swift’s costs incurred in providing the services to Power were $32,500. (Leave no cells blank, enter "0" wherever required.)    Required: a. By what amount will consolidated net income change when the intercompany services are eliminated in preparing Power’s consolidated statements...
Plumber Corporation owns 60 percent of Socket Corporation’s voting common stock. On December 31, 20X4, Plumber...
Plumber Corporation owns 60 percent of Socket Corporation’s voting common stock. On December 31, 20X4, Plumber paid Socket $324,000 for dump trucks Socket had purchased on January 1, 20X2. Both companies use straight-line depreciation. The consolidation entry included in preparing consolidated financial statements at December 31, 20X4, was Consolidation Worksheet Entry Debit Credit Trucks 36,000 Gain on Sale of Trucks 36,000 Accumulated Depreciation 72,000 Required: a. What amount did Socket pay to purchase the trucks on January 1, 20X2? b....
Baywatch Industries has owned 80 percent of Tubberware Corporation for many years. On January 1, 20X6,...
Baywatch Industries has owned 80 percent of Tubberware Corporation for many years. On January 1, 20X6, Baywatch paid Tubberware $258,000 to acquire equipment that Tubberware had purchased on January 1, 20X3, for $273,000. The equipment is expected to have no scrap value and is depreciated over a 15-year useful life.       Baywatch reported operating earnings of $120,000 for 20X8 and paid dividends of $40,000. Tubberware reported net income of $42,000 and paid dividends of $21,000 in 20X8. (Leave no cell...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT