Option D-----Entry D
Investment in Glenn $15120
Equity in income of Glenn $15120
350000-210000=140000*(1-(224000/350000)
=50400*30%=$15120
QUESTION 7 Drew Incorporated sold $210,000 of its inventory to Glenn Company during 2018 for $350,000....
Tiberend, Inc., sold $165,000 in inventory to Schilling Company during 2017 for $250,000. Schilling resold $110,000 of this merchandise in 2017 with the remainder to be disposed of during 2018. Assuming that Tiberend owns 30 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2017 to defer the intra-entity gross profit? (
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Problem 1-19 (LO 1-6) Tiberend, Inc., sold $145,000 in inventory to Schilling Company during 2017 for $250,000. Schilling resold $95.000 of this merchandise in 2017 with the remainder to be disposed of during 2018. Assuming that Tiberend owns 21 percent of Schilling and applies the equity method, what journal entry is recorded at the end of 2017 to defer the intra-entity gross profit? (If no entry is required for a transaction/event, select "No journal entry required" in the first account...
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Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years. Devin reported net income of $300,000 and $325,000 for 2017 and 2018, respectively. Pepe uses the equity method to account for its investment in Devin. Assuming there are no excess amortizations or other intra-entity transactions, compute the net income attributable...
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On January 1, 2018, Sledge had common stock of $130,000 and retained earnings of $270,000. During that year, Sledge reported sales of $140,000, cost of goods sold of $75,000, and operating expenses of $41,000. On January 1, 2016, Percy, Inc., acquired 70 percent of Sledge's outstanding voting stock. At that date, $61,000 of the acquisition-date fair value was assigned to unrecorded contracts (with a 20-year life) and $21,000 to an undervalued building (with a 10-year remaining life). In 2017, Sledge...
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7. Portland, Inc. acquired 80% of Sanders Enterprises on January 5, 2010 During 2018, Sanders sold Portland for $510,000 goods which had cost $346,800. Portland still owned 10% of the goods at the end of the Year In 2019, Sanders sold goods with a cost of $280,000 to Portland Tom $ 350,000, and the buyer still owned 15% of the goods at year-end. For 2019, cost of goods sold was $3,540, 100 for Portland and $820,000 for Sanders. What was...