On January 1, Year 5, KPU Co. purchased 80% of the outstanding common shares of UFV...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 1, Year 5, KPU Co. purchased 80% of the outstanding common shares of UFV Co. for $12,000 in cash. On that date, the shareholders' equity of UFV consisted of $3,000 in common shares and $5,000 in retained earnings. For the year ended December 31, Year 10, the income statements for KPU and UFV were as follows: UFV $ 13,500 1,100 8,900 2,100 1,000 500 $ 2,100 Sales Other Income Cost of goods sold Depreciation expense Other expenses Income tax expense Net income At December 31, Year 10, the condensed balance sheets for the two companies were as follows: Cash and accounts receivables Inventory Property, plant and equipment Investment in Sub Total assets KPU $ 32,500 5,500 21,500 4,200 3,800 1,400 $ 7,100 Liabilities Common shares Retained earnings Total liabilities and shareholders' equity KPU UFV $ 11,000 $ 9,100 3,500 2,000 25,800 15,000 12,000 $ 52,300 $ 33,300 6,000 13,000 $ 52,300 $ 26,100 $ 15,500 3,000 7,600 $ 26,100 On January 1, Year 5, KPU Co. purchased 80% of the outstanding common shares of UFV Co. for $12,000 in cash. On that date, the shareholders' equity of UFV consisted of $3,000 in common shares and $5,000 in retained earnings. For the year ended December 31, Year 10, the income statements for KPU and UFV were as follows: UFV $ 13,500 1,100 8,900 2,100 1,000 500 $ 2,100 Sales Other Income Cost of goods sold Depreciation expense Other expenses Income tax expense Net income At December 31, Year 10, the condensed balance sheets for the two companies were as follows: Cash and accounts receivables Inventory Property, plant and equipment Investment in Sub Total assets KPU $ 32,500 5,500 21,500 4,200 3,800 1,400 $ 7,100 Liabilities Common shares Retained earnings Total liabilities and shareholders' equity KPU UFV $ 11,000 $ 9,100 3,500 2,000 25,800 15,000 12,000 $ 52,300 $ 33,300 6,000 13,000 $ 52,300 $ 26,100 $ 15,500 3,000 7,600 $ 26,100
Expert Answer:
Answer rating: 100% (QA)
a To calculate the consolidated net income for Year 10 we need to eliminate the intercompany transactions and adjust for noncontrolling interest Conso... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these accounting questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
What is the value of the following cash flow, assuming a required rate of return 15% per annum compounded annually? (Sketch a cash flow diagram as part of your solution) End of Year 1 2 2345 Cashflow...
-
On December 31, 19X9, Hari Company (Hari) purchased 70% of the outstanding common shares of Amin Limited (Amin) for $ 7,000. On that date, Amins shareholders equity consisted of common shares of $...
-
The kinetic energy of an electron in a particular Bohr orbit of hydrogen is 1.35 10-19 J. (a) Which Bohr orbit does the electron occupy? (b) Suppose the electron moves away from the nucleus to the...
-
Solve Prob. 11?56 using the principle of potential energy. Investigate the stability of the rod when it is in the equilibrium position. 2 ft k = 50 lb/ft www 1 ft
-
Suppose that Solution Software Company produces inventory tracking software that it sells to retail companies such as Canadian Tire. The software keeps track of what inventory is on hand and where it...
-
A metal surface is illuminated by light with a wavelength of \(350 \mathrm{~nm}\). The maximum kinetic energy of the emitted electrons is found to be \(1.50 \mathrm{eV}\). What is the maximum...
-
Foster Drugs, Inc., handles a variety of health and beauty aid products. A particular hair conditioner product costs Foster Drugs $2.95 per unit. The annual holding cost rate is 20%. An...
-
Read each story problem. Then: Write an equation (including the answer) for the problem. a Fill in the bubble to show whether the answer means the size of each group or the number of groups. The swim...
-
A cylindrical specimen of aluminum having a diameter of 0.505 in. (12.8 mm) and a gauge length of 2.000 in. (50.800 mm) is pulled in tension. Use the load?elongation characteristics tabulated below...
-
One reason for the increased challenge to taxpayers on their transfer prices is that tax authorities view transfer pricing as "soft target." Because of the difficulty involved in proving that their...
-
Briefly describe how hemoglobin and the carbonic acid buffering system work together in extrapulmonary tissues to buffer the blood and transport the blood gases.
-
The current spot price of gold is $1280 per ounce. The forward price for 1 year delivery is $1400. Suppose an investor can borrow at 3% per year (simple interest). How can the investor make a...
-
You are a senior project finance account manager at a boutique investment bank who has received the attached summarized project information memorandum ("Development, Financing and Operation of a 5MW...
-
Calculate the overtime pay. reference cell c21 for the "hours worked". the employee is paid 1.5 times the regular pay rate for any time the employee works more than the number regular hours in pay...
-
What are the four ways that redox reactions occur in living organisms?
-
CCTV-Cam is a security service company. It employs skilled technicians to conduct maintenance activities. A demand forecast study reveals the number of hours of skilled maintenance time that CCTV-Cam...
-
Create an appropriate display of the navel data collected in Exercise 25 of Section 3.1. Discuss any special properties of this distribution. Exercise 25 The navel ratio is defined to be a persons...
-
On January 1, Year 5, Wellington Inc. owned 90% of the outstanding common shares of Sussex Corp. Wellington accounts for its investment using the equity method. The balance in the investment account...
-
On January 1, Year 4, P Company (a Canadian company) purchased 90% of S Company (located in a foreign country) at a cost of 15,580 foreign currency units (FC). The carrying amounts of S Company's net...
-
The Perch Falls Minor Hockey Association was established in Perch Falls in January Year 5. Its mandate is to promote recreational hockey in the small community of Perch Falls. With the support of the...
-
The relativity of simultaneity. Two clocks are placed at rest on the \(x^{\prime}\) axis of the primed frame, clock A at \(x^{\prime}=0\) and clock B at \(x^{\prime}=L_{0}\). They are therefore a...
-
A primed frame moves at \(V=(3 / 5) c\) relative to an unprimed frame. Just as their origins pass, clocks at the origins of both frames read zero, and a flashbulb explodes at that point. Later, the...
-
Two spaceships are approaching one another. According to observers in our frame, (a) the left-hand ship moves to the right at \((4 / 5) c\) and the right-hand ship moves to the left at \((3 / 5) c\)....
Study smarter with the SolutionInn App