Selected balance sheet items for P Corporation and its 90%-owned subsidiary, S Corporation, on December 31,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Selected balance sheet items for P Corporation and its 90%-owned subsidiary, S Corporation, on December 31, 2021, are as follows: Inventories Land Investment in S Common stock Retained earnings P Corp. S Corp. P 18,000,000 P 40,400,000 47,000,000 113,000,000 300,000,000 100,000,000 80,000,000 20,000,000 10,000,000 P acquired its 90% interest in S for cash on December 31, 2018 at a price P5,000,000 in excess of underlying book value. The excess was due to goodwill having a 10-year amortization period. S Corporation's inventories at December 31, 2021 included merchandise acquired from P at a price P500,000 in excess of its cost to P. Unrealized profit in S's December 31, 2020 inventories acquired from P were P400,000. During 2021 S sold land to P at a gain of P2,000,000. P's land account at December 31, 2021 includes the full 7,000,000 paid for the land. P uses the equity method of accounting its investment in S but has applied the equity method without amortizing goodwill or adjusting for unrealized profits (an incomplete equity method). The minority interest, December 31, 2021 must be: Selected balance sheet items for P Corporation and its 90%-owned subsidiary, S Corporation, on December 31, 2021, are as follows: Inventories Land Investment in S Common stock Retained earnings P Corp. S Corp. P 18,000,000 P 40,400,000 47,000,000 113,000,000 300,000,000 100,000,000 80,000,000 20,000,000 10,000,000 P acquired its 90% interest in S for cash on December 31, 2018 at a price P5,000,000 in excess of underlying book value. The excess was due to goodwill having a 10-year amortization period. S Corporation's inventories at December 31, 2021 included merchandise acquired from P at a price P500,000 in excess of its cost to P. Unrealized profit in S's December 31, 2020 inventories acquired from P were P400,000. During 2021 S sold land to P at a gain of P2,000,000. P's land account at December 31, 2021 includes the full 7,000,000 paid for the land. P uses the equity method of accounting its investment in S but has applied the equity method without amortizing goodwill or adjusting for unrealized profits (an incomplete equity method). The minority interest, December 31, 2021 must be:
Expert Answer:
Answer rating: 100% (QA)
The detailed answer for the above question is provided below The ... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
Students also viewed these accounting questions
-
Determine the amounts at which the following items will appear in the consolidated financial statements of Pam Corporation and Subsidiary for the year ended December 31, 2016. 7. Dividends declared...
-
Financial statements for Pad Corporation and its 75 percent-owned subsidiary, Sum Corporation, for 2011 are summarized as follows (in thousands): Pad acquired its interest in Sum at book value during...
-
Financial statements for Pop Corporation and its 75 percent-owned subsidiary, Son Corporation, for 2017 are summarized as follows (in thousands): Pop Corporation acquired its interest in Son at book...
-
A management team can gain additional insight on company performance by comparing ___________ against _____________. Question content area bottom Part 1 A. budgets, flexible budget B. actual results,...
-
Identify and describe the five environmental differences between governments and for-profit business enterprises as identified in the Governmental Accounting Standards Boards Why Governmental...
-
The weekly prices of one brand of frozen pizza over a three-year period in Montreal are provided in the data file. Use the price data to answer the following questions: a) Find the five-number...
-
What is a bivariate distribution function?
-
Mean Machine makes three types of electric scooters. The company's total fixed cost is $1,080,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: a. What is...
-
Two investors hold portfolios with the following allocations: Investor A: Bonds 20% & Stocks 80% Investor B: Bonds 30% & Stocks 70% Assuming all else is equal (same expected returns, volatilities,...
-
West Co. recorded the following inventory information during the month of February: Units Unit cost Total cost Units on Hand Balance on 2/1 800 $2 $1,600 800 Purchased on 2/8 1,000 $3 $3,000 1,800...
-
Methane \(\left(\mathrm{CH}_{4} ight)\) is burned with \(50 \%\) excess air. The equilibrium products at a pressure of 10 bar and a temperature of \(1600 \mathrm{~K}\) contain \(\mathrm{CO}_{2},...
-
A method of reducing (improving) engine fuel consumption and reducing the emissions of \(\mathrm{NO}_{\mathrm{x}}\) in a spark-ignition engine is to run it lean, i.e. with a weak mixture. Discuss the...
-
The structure of ethylene is \(\mathrm{H}_{2} \mathrm{C}=\mathrm{CH}_{2}\). Estimate the enthalpy of reaction when \(1 \mathrm{kmol}\) of ethylene is completely oxidised. Compare the value obtained...
-
A gas turbine engine operates between minimum temperature \(T_{1}\) and maximum temperature \(T_{3}\). Show that the optimum pressure ratio for maximum work output is...
-
The joint cumulative distribution function for ( X , Y ) ( X , Y ) is given by F ( x , y ) = ( 1 e x / 10 e y / 2 + e ( x + 5 y ) / 10 ) I ( 0 , ) ( x ) I ( 0 , ) ( y ) F ( x , y ) = ( 1 e x...
-
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $10.80 per unit, while...
-
1. True or False. Pitfalls to consider in a statistical test include nonrandom samples, small sample size, and lack of causal links. 2. Because 25 percent of the students in my morning statistics...
-
1. The separate incomes of Pop Corporation and Son Corporation, a 100 percent-owned subsidiary of Pop, for 2017 are $2,000 and $1,000, respectively. Pop sells all of its output to Son at 150 percent...
-
Are consolidated income tax returns required for all consolidated entities? Discuss.
-
How many columns (not including total columns) are needed for a government-wide statement of net assets of a governmental unit with a general fund, two special revenue funds, three internal service...
-
An inventor claims to have developed an engine that takes in \(100 \mathrm{MJ}\) of heat at \(400 \mathrm{~K}\), rejects \(40 \mathrm{MJ}\) of heat at \(200 \mathrm{~K}\), and delivers \(15...
-
The value of \(\Delta W=\int_{1}^{2} P d V\) of an ideal gas in a reversible isothermal process is (a) 0 (b) \(\frac{P_{1} V_{1}-P_{2} V_{2}}{\gamma-1}\) (c) \(P_{1} V_{1} \ln \frac{V_{2}}{V_{1}}\)...
-
Compressibility factor for a given vapour or gas can be represented by (a) \(Z=1+B^{\prime} P+C^{\prime} P^{2}+D^{\prime} P^{3}+\cdots\) (b) \(Z=1+\frac{B}{V}+\frac{C}{V^{2}}+\frac{D}{V^{3}}+\cdots\)...
Study smarter with the SolutionInn App