Darden acquired a 60 percent interest in Moody on January 1. 2020, in exchange for various...

  
 

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Darden acquired a 60 percent interest in Moody on January 1. 2020, in exchange for various considerations totaling S660,000. At the acquisition date, the fair value of the noncontrolling interest was 5440,000 and Moody's book value was S880,000. Moody had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of S220,000. This intangible asset is being amortized over 20 years. Darden uses the equity method to account for its investment in Moody. Moody reported net income of $300,000 for 2020 and paid dividend of $80,000 during 2020. Moody regularly transfers inventory to Darden at a 40 percent gross profit rate. Darden consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the two years after this business combination were the following Inventory Remaining at Year- End (at transfer price) $50,000 Year Transfer Price $250.000 $300,000 2020 2021 S60,000 Darden had sold a building on Jamuary 2, 2021, with a S120,000 book value (cost of $260,000) to Moody for $220,000. Building had a 10-year remaining life at the date of transfer. The following selected account balances are from the individual financial records of these two companies as of December 31, 2021 Sales Cost of goods sold Darden $900,000 600,000 Moody S700,000 350,000 100,000 80,000 Operating expenses Inventory Building (net) 510,000 508,000 440,000 420,000 Answer the following question: (Do not add dollar sign; do not add comma to your amount, round the immediate answer to the whole number) What was the balance of Investment in Moody on Darden's book as of December 31, 2020? Answer the following question: (Do not add dollar sign; do not add comma to your amount; round the immediate answer to the who What was the balance of Investment in Moody on Darden's book as of December 31, 2020? QUESTION 2 (Use the information in Question #1) What is the amount of Equity in Moody Earnings for year 2021? QUESTION 3 (Use the information above) What is the amount of noncontrolling interest net income for 2021? QUESTION 4 (Use the information above) Determine the consolidated total of sales revenues for year 2021. QUESTION 5 (Use the information above) Determine the consolidated total of cost of goods sold for year 2021. QUESTION 6 (Use the information above) Determine the consolidated total of operating expense for year 2021. QUESTION 7 (Use the information above) Determine the consolidated balance of inventory as of December 31, 2021. QUESTION 8 (Use the information above) Determine the consolidated balance of building as of December 31, 2021. Darden acquired a 60 percent interest in Moody on January 1. 2020, in exchange for various considerations totaling S660,000. At the acquisition date, the fair value of the noncontrolling interest was 5440,000 and Moody's book value was S880,000. Moody had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of S220,000. This intangible asset is being amortized over 20 years. Darden uses the equity method to account for its investment in Moody. Moody reported net income of $300,000 for 2020 and paid dividend of $80,000 during 2020. Moody regularly transfers inventory to Darden at a 40 percent gross profit rate. Darden consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the two years after this business combination were the following Inventory Remaining at Year- End (at transfer price) $50,000 Year Transfer Price $250.000 $300,000 2020 2021 S60,000 Darden had sold a building on Jamuary 2, 2021, with a S120,000 book value (cost of $260,000) to Moody for $220,000. Building had a 10-year remaining life at the date of transfer. The following selected account balances are from the individual financial records of these two companies as of December 31, 2021 Sales Cost of goods sold Darden $900,000 600,000 Moody S700,000 350,000 100,000 80,000 Operating expenses Inventory Building (net) 510,000 508,000 440,000 420,000 Answer the following question: (Do not add dollar sign; do not add comma to your amount, round the immediate answer to the whole number) What was the balance of Investment in Moody on Darden's book as of December 31, 2020? Answer the following question: (Do not add dollar sign; do not add comma to your amount; round the immediate answer to the who What was the balance of Investment in Moody on Darden's book as of December 31, 2020? QUESTION 2 (Use the information in Question #1) What is the amount of Equity in Moody Earnings for year 2021? QUESTION 3 (Use the information above) What is the amount of noncontrolling interest net income for 2021? QUESTION 4 (Use the information above) Determine the consolidated total of sales revenues for year 2021. QUESTION 5 (Use the information above) Determine the consolidated total of cost of goods sold for year 2021. QUESTION 6 (Use the information above) Determine the consolidated total of operating expense for year 2021. QUESTION 7 (Use the information above) Determine the consolidated balance of inventory as of December 31, 2021. QUESTION 8 (Use the information above) Determine the consolidated balance of building as of December 31, 2021.

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