On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value.
a. Plimsol uses the cost method in accounting for its investment in Shipping.
b. Shipping's retained earnings was $75,000 on the date of acquisition.
c. On December 31, 20X4, the data on the trial balances data for the two companies are as follows:
Plimsol Co: Shipping Corp:
Current Assets $100,000 Current Assets $75,000
Depreciable Assets $200,000 Depreciable Assets $150,000
Investment in Shipping Corp. $125,000
Other Expenses $60,000 Other Expenses $45,000
Depreciation Expense $20,000 Depreciation Expense $15,000
Dividends declared $25,000 Dividends declared $15,000
Current Liabilities $40,000 Current Liabilities $25,000
Long-term debt $75,000 Long-term debt $50,000
Common Stock $100,000 Common Stock $50,000
Retained earnings $150,000 Retained earnings $75,000
Sales $150,000 Sales $10,000.
Dividend Revenue $15,000.
Required:
Based on the information provided, what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31, 20X4?
a. $235,000
b. $210,000
c. $310,000
d. $225,000
Answers: 1
Other questions on the subject: Business
Business, 21.06.2019 16:10, georgesarkes12
Weber company purchases $44,270 of raw materials on account, and it incurs $52,730 of factory labor costs. supporting records show that (a) the assembly department used $27,580 of raw materials and $33,320 of the factory labor, and (b) the finishing department used the remainder. manufacturing overhead is assigned to departments on the basis of 150% of labor costs. journalize the assignment of overhead to the assembly and finishing departments. account titles and explanation debit credit
Answers: 2
Business, 22.06.2019 10:30, jlankford148
What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.
Answers: 1
Business, 22.06.2019 16:40, michibabiee
Shawn received an e-mail offering a great deal on music, movie, and game downloads. he has never heard of the company, and the e-mail address and company name do not match. what should shawn do?
Answers: 2
Business, 22.06.2019 20:00, krystynas799
In myanmar, six laborers, each making the equivalent of $ 2.50 per day, can produce 40 units per day. in china, ten laborers, each making the equivalent of $ 2.25 per day, can produce 48 units. in billings comma montana, two laborers, each making $ 60.00 per day, can make 102 units. based on labor cost per unit only, the most economical location to produce the item is china , with a labor cost per unit of $ . 05. (enter your response rounded to two decimal places.)
Answers: 3
Do you know the correct answer?
On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at...
Questions in other subjects:
Law, 03.03.2020 21:40
History, 03.03.2020 21:41
Biology, 03.03.2020 21:41
History, 03.03.2020 21:41
