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Compute the balances in problem 28 again assuming that all intraentity transfers were made from Zeigler to Bennett problem Bennett acquired 70 percent of Zeigler on

Compute the balances in problem (28) again, assuming that all intra-entity transfers were made from Zeigler to Bennett

problem

Bennett acquired 70 percent of Zeigler on June 30, 2014, for $910,000 in cash. Based on Zeigler’s acquisition-date fair value, only one unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2015 financial statements are as follows:

Bennett sold Zeigler inventory costing $72,000 during the last six months of 2014 for $120,000. At year-end, 30 percent remained. Bennett sells Zeigler inventory costing $200,000 during 2015 for $250,000. At year-end, 20 percent is left. With these facts, determine the consolidated balances for the following: Sales Cost of Goods Sold Operating Expenses Dividend Income Net Income Attributable to Noncontrolling Interest Inventory Noncontrolling Interest in Subsidiary, 12/31/15

Jul 22 2020 View more View Less

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