Powell Company owns 75% of the outstanding common stock of Sullivan Company. Powell Company uses cost method. In 2014-2016, the following events occurred. 1. On January 1, 2014, Sullivan Company sold land to Powell Company for $413,900. S Company originally purchased the land for $590,900.
2. On June 30, 2015, Sullivan Company sold equipment to Powell Company for $481,400. The equipment cost Sullivan Company $721,800 and had accumulated depreciation of $410,000 on the date of the sale. The management of Powell Company estimated that the equipment had a remaining useful life of five years from June 30, 2014.
3. On January 1, 2016, Powell Company sold the land purchased from Sullivan Company to a company outside the affiliated group for $690,300.

Also we have following information for Powell and Sullivan Co.

2014 2015 2016

Powell company's NI in Powell's book 273,100 384,000 20,000
Sullivan's NI 293,800 194,000 25,000
Sullivan's Dividends 345,920 204,700 28,000

For 2014, 2015 and 2016, determine Ni att. to Powell (In the exam pool, we had this as the controlling interest in consolidated net income). It is obvious that you need to show consolidated net income and NCI income.

Aceramics manufacturer sold cups last year for $7.50 each. variable costs of manufacturing were $2.25 per unit. the company needed to sell 20,000 cups to break even. net income was $5,040. this year, the company expects the price per cup to be $9.00; variable manufacturing costs to increase 33.3%; and fixed costs to increase 10%. how many cups (rounded) does the company need to sell this year to break even?

Bridgeport company began operations at the beginning of 2018. the following information pertains to this company. 1. pretax financial income for 2018 is $115,000. 2. the tax rate enacted for 2018 and future years is 40%. 3. differences between the 2018 income statement and tax return are listed below: (a) warranty expense accrued for financial reporting purposes amounts to $7,500. warranty deductions per the tax return amount to $2,200. (b) gross profit on construction contracts using the percentage-of-completion method per books amounts to $94,700. gross profit on construction contracts for tax purposes amounts to $67,100. (c) depreciation of property, plant, and equipment for financial reporting purposes amounts to $61,800. depreciation of these assets amounts to $75,700 for the tax return. (d) a $3,600 fine paid for violation of pollution laws was deducted in computing pretax financial income. (e) interest revenue recognized on an investment in tax-exempt municipal bonds amounts to $1,500. 4. taxable income is expected for the next few years. (assume (a) is short-term in nature; assume (b) and (c) are long-term in nature.) (a) prepare the reconciliation schedule for 2017 and future years. (b) prepare the journal entry to record income tax expense for 2017. (c) prepare the income tax expense section of the income statement beginning with “income before income taxes.” (d) determine how the deferred taxes will appear on the balance sheet at the end of 2017.

Sue peters is the controller at vroom, a car dealership. dale miller recently has been hired as the bookkeeper. dale wanted to attend a class in excel spreadsheets, so sue temporarily took over dale's duties, including overseeing a fund used for gas purchases before test drives. sue found a shortage in the fund and confronted dale when he returned to work. dale admitted that he occasionally uses the fund to pay for his own gas. sue estimated the shortage at $450. what should sue do?