2) Compute the amortization of gain through a depreciation adjustment for 2012/2013/2014 for consolidation purposes. '
3) Compute Wilson's share of income from Simon for consolidation for 2012, 2013, and 2014
Homework Answers
Yearly Depreciation that wilson could get = 50,000/10
= 5,000
Yearly depreciation of 90% owned subsaidary = 68,250/117*12
= 7,000
Difference in Depreciation =2000
Income of Simon Company for 2012 = 100,000
% of share = 90%
Share of Wilson = 90,000
less: Depreciation = 2,000
Willson share of income for simons = 88,000
consolidation for 2012
Income of Simon Company for 2013 = 120,000
% of share = 90%
Share of Wilson = 108,000
less: Depreciation = 2,000
Willson share of income for simons = 106,000
consolidation for 2013
Income of Simon Company for 2014 = 130,000
% of share = 90%
Share of Wilson = 117,000
less: Depreciation = 2,000
Willson share of income for simons = 119,000
consolidation for 2014
Add Answer to:
2) Compute the amortization of gain through a depreciation
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Preparing the
[I] consolidation journal entries for sale of depreciable
assets - Equity method
Assume that on January 1, 2011, a wholly owned subsidiary sells to
its parent, for a sale price of $132,000, equipment that originally
cost $156,000. The subsidiary originally purchased the equipment on
January 1, 2007, and depreciated the equipment assuming a 10-year
useful life (straight-line with no salvage value). The parent has
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equipment over the remaining...
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1) Compute the gain on transfer of equipment reported by Wilson
for 2012.
Wilson owned equipment with an estimated life of 10 years when it was acquired for an original cost of $80,000. The equipment had a book value of $50,000 at January 1, 2012. On January 1, 2012, Wilson realized that the useful life of the equipment was longer than originally anticipated, at ten remaining years. On April 1, 2012 Simon Company, a 90% owned subsidiary of Wilson Company,...
4) For consolidation purposes, what amount would be debited to
January 1 retained earnings for the 2012/2013/2014 consolidation
worksheet entry with regard to the unrealized gross profit of the
prior year’s intra-entity transfer (if any) of merchandise
Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012. 2012 2013 2014 Purchases by Posito $8,000...
2) Compute the non-controlling interest in Gargiulo's net income
for 2012, 2013, and 2014.
Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012. 2012 2013 2014 Purchases by Posito $8,000 $12,000 $15,000 Ending inventory on Posito's books 1,200 4,000 3,000 Assume the equity method is used. The following data are available pertaining to...
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with regard to the unrealized gross profit of that year’s
intra-entity transfer of merchandise?
4) For consolidation purposes, what amount would be debited to
January 1 retained earnings for the 2012/2013/2014 consolidation
worksheet entry with regard to the unrealized gross profit of the
prior year’s intra-entity transfer (if any) of merchandise?
Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells...
1) Compute the equity in earnings of Gargiulo reported on
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Question text
Preparing the
[I] consolidation journal entries for sale of depreciable
assets - Equity method
Assume that on January 1, 2011, a wholly owned subsidiary sells to
its parent, for a sale price of $132,000, equipment that originally
cost $156,000. The subsidiary originally purchased the equipment on
January 1, 2007, and depreciated the equipment assuming a 10-year
useful life (straight-line with no salvage value). The parent has
adopted the subsidiary's depreciation policy and depreciates the
equipment over the remaining...
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