Home / Questions / Pop Corporation acquired a 70 percent interest in Son Corporation on January 1 2016 for $4...
Pop Corporation acquired a 70 percent interest in Son Corporation on January 1, 2016, for $420,000 cash, when Son s equity consisted of $300,000 capital stock and $200,000 retained earnings. On July 1, 2017, Pop acquired an additional 10 percent interest in Son for $67,500, to bring its interest in Son to 80 percent. The financial statements of Pop and Son Corporations at and for the year ended December 31, 2017, are as follows (in thousands): ADDITIONAL INFORMATION 1. The fair value/book value differential from Pop s two purchases of Son was goodwill. 2. Pop Corporation sold inventory items to Son during 2016 for $60,000, at a gross profit of $10,000. During 2017, Pop s sales to Son were $48,000, at a gross profit of $8,000. Half of the 2016 intercompany sales were inventoried by Son at year-end 2016, and three-fourths of the 2017 sales remained unsold by Son at year-end 2017. Son owes Pop $25,000 from 2017 purchases. 3. At year-end 2016, Son purchased land from Pop for $20,000. The cost of this land to Pop was $12,000. 4. Pop sold machinery with a book value of $40,000 to Son for $80,000 on July 8, 2017. The machinery had a five-year useful life at that time. Son uses straight-line depreciation without considering salvage value on the machinery. 5. Pop uses a one-line consolidation in accounting for Son. Both Pop and Son Corporations declared dividends for 2017 in equal amounts in June and December. REQUIRED: Prepare a workpaper to consolidate the financial
Jun 16 2020 View more View Less
Suppose the Social Security Administration would like to guarantee the purchasing power of social security payments to the elderly does not diminish. That is, the real v...
Apr 13 2021Researchers looking for fossils of the earliest life-forms face many hurdles. For example, few sedimentary rocks date back more than 3 billion years. Review what you lear...
Jul 09 2021A company made 18 monthly deposits of USD 3,000 first in the act, and some time later, 06 quarterly withdrawings of USD 24350 if the rate was 24% yearly, capitalizating m...
Aug 03 2021Suppose Caroline is a single parent with one child, and she is trying to determine the effect of transfer benefits and taxes on her implicit marginal tax rate (and thus h...
Aug 15 2021Clare sells handmade purses. She uses her savings of $5,000, which was earning $750 per year in an investment account, to fund her business. Her other expenses include ma...
Apr 29 2020تفاضل وتكامل (2) نظري - طولكرم Question 1 = ((5 + log ; ( r2) و Not yet answered Marked out of Select one: : r a, 3(x2 +5) Flag question 21 b h3a215) r .ع Olmaz
Apr 22 2021Application of any two process theories of motivation to motivating the supermarket staff. The discussion should encompass explanations, the principles of, the validity a...
Apr 30 2020The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividends: Time 1 Brangus cattle Comap...
Apr 20 2021Which of the following statements is true regarding a company’s segment margin? A. It is primarily used to make short-term decisions such as cost-volume-profit (CVP) a...
Jan 09 2020A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume annual interest payments.) a. What interest ...
May 19 2020