On january 1, 2013, 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 84,000
on 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, 2015?
expert answer
Answers: 3
Other questions on the subject: Business
Business, 21.06.2019 17:00, eliezer25
Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .
Answers: 1
Business, 21.06.2019 19:20, lukeperry
Astock with a beta of 0.6 has an expected rate of return of 13%. if the market return this year turns out to be 10 percentage points below expectations, what is your best guess as to the rate of return on the stock? (do not round intermediate calculations. enter your answer as a percent rounded to 1 decimal place.)
Answers: 2
Business, 21.06.2019 21:30, cesar566
In its 2016 annual report, caterpillar inc. reported the following (in millions): 2016 2015 sales $38,537 $47,011 cost of goods sold 28,309 33,546 as a percentage of sales, did caterpillar's gross profit increase or decrease during 2016? select one: a. gross profit increased from 26.8% to 28.6% b. gross profit decreased from 28.6% to 26.5% c. gross profit increased from 71.4% to 73.2% d. gross profit decreased from 73.2% to 71.4% e. there is not enough information to answer the question.
Answers: 2
Business, 22.06.2019 18:00, lovecats12
Rosie and her brother michael decided recently to purchase an rv together. they both want to use the rv to take their families camping. the price of the rv was $10,000. since michael expects to use the rv 60% of the time and rosie 40% of the time, michael contributed $6,000 and rosie contributed $4,000. their ownership percentage equals their contribution percentage. which type of property titling should they use to reflect their ownership interest?
Answers: 1
Do you know the correct answer?
On january 1, 2013, vacker co. acquired 70% of carper inc. by paying $650,000. this included a $20,0...
Questions in other subjects:
Computers and Technology, 13.11.2020 01:00
Mathematics, 13.11.2020 01:00
Mathematics, 13.11.2020 01:00
Arts, 13.11.2020 01:00
Mathematics, 13.11.2020 01:00
English, 13.11.2020 01:00
