The shareholders equity section of Lift Hydraulics Incorporateds balance sheet disclosed the following amounts: (in millions) Dec.
Question:
The shareholders’ equity section of Lift Hydraulics Incorporated’s balance sheet disclosed the following amounts:
(in millions) | Dec. 29, Year 7 | Dec. 28, Year 6 |
Accumulated other comprehensive income | $5,632,000 | $4,543,000 |
Additional disclosures indicated that the only component included in comprehensive income beyond net income resulted from foreign currency translation adjustments. Net income totaled $24,131,000 and $15,223,000 for the years ending December 29, Year 7, and December 28, Year 6, respectively.
How much is Lift Hydraulics comprehensive income for Year 7?
| a. | $27,763,000 | |
| b. | $21,042,000 | |
| c. | $25,220,000 | |
| d. | $ 7,997,000 |
Hubert Products transferred $750,000 of accounts receivable to a newly established subsidiary whose sole purpose was to buy and factor accounts receivable from Hubert. Hubert received a 65 percent interest in the subsidiary while another company contributed $350,000 cash to be a 35% owner. During the first year, the subsidiary reported $800,000 of revenue, $600,000 of expenses, and paid $120,000 of cash dividends.
At what value will this variable interest entity be reported on Hubert Products’ balance sheet at year end?
| a. | $802,000 | |
| b. | $-0- | |
| c. | $702,000 | |
| d. | $730,000 |
Expert Answer:
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
