Aline Company acquired all of Melody Company's outstanding stock on January 1, 2022, for $300,000 in...
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Aline Company acquired all of Melody Company's outstanding stock on January 1, 2022, for $300,000 in cash. Melody had a book value of only $202,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $72,000 on Melody's financial records. A building with a 20-year remaining life was overvalued by $20,000. In accounting for this investment, Aline used the equity method. During 2022, Melody reported net income of 64,000 and declared and paid dividends of $12,000. Selected accounts taken from the financial records of these two companies as of December 31, 2022, follow Aline Revenues--- $425,000 $162,000 Melody Operating Expenses 278,000 98,000 Equity in Melody Earnings Equipment (net) Buildings (net) Common. Stock Retained earnings, 12/31/22 402,000 68,000 356,000 84,000 470,000 58,000 580,000 196,000 Determine the following account balances as of December 31, 2022 (Do not add dollar sign; do not add comma to your amount; round the answer to the whole number) 1. Consolidated Net Income [a] 2. Consolidated Equipment (net) [b] 3. Consolidated Buildings (net) [c] 4. Consolidated Goodwill (net) [d] 5. Consolidated Retained Earnings, 12/31/22. [0] Aline Company acquired all of Melody Company's outstanding stock on January 1, 2022, for $300,000 in cash. Melody had a book value of only $202,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $72,000 on Melody's financial records. A building with a 20-year remaining life was overvalued by $20,000. In accounting for this investment, Aline used the equity method. During 2022, Melody reported net income of 64,000 and declared and paid dividends of $12,000. Selected accounts taken from the financial records of these two companies as of December 31, 2022, follow Aline Revenues--- $425,000 $162,000 Melody Operating Expenses 278,000 98,000 Equity in Melody Earnings Equipment (net) Buildings (net) Common. Stock Retained earnings, 12/31/22 402,000 68,000 356,000 84,000 470,000 58,000 580,000 196,000 Determine the following account balances as of December 31, 2022 (Do not add dollar sign; do not add comma to your amount; round the answer to the whole number) 1. Consolidated Net Income [a] 2. Consolidated Equipment (net) [b] 3. Consolidated Buildings (net) [c] 4. Consolidated Goodwill (net) [d] 5. Consolidated Retained Earnings, 12/31/22. [0]
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Answer rating: 100% (QA)
Answer 1 Consolidated net income 425000 278000 162000 98000 72000 8 20000 20 2... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
Posted Date:
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