Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: 2019 2020 2021 Net income 100,000 120,000 S 130,000 Dividends 40,000 50,000 60,000 Assume the partial equity method is applied. 13. Compute Pell's investment in Demers at December 31, 2019. $625,000. $574,400. $548,000. $542,400 $532,000. 14. Compute Pell's investment in Demers at December 31, 2020. $676,000. $629,000. $580,000. $604,000. $572,000. 15. Compute Pell's investment in Demers at December 31, 2021. S780,000. $660,000. $785,000. $676,000, $620,000. 16. Compute the noncontrolling interest in the net income of Demers at December 31, 2020. $18,400. $14,000. $22,600. $24,000. $12,600. 17. Compute the noncontrolling interest in the net income of Demers at December 31, 2021. $20,400. $26,000. $24,600. $14,000. $12,600. 18. Compute the noncontrolling interest in Demers at December 31, 2019. $135,600. $114,000. $112,000. $100,000. $110,600. 19. Compute the noncontrolling interest in Demers at December 31, 2020. $124,000. $126,000. $109,200. $149,600. $148,200. 20. Compute the noncontrolling interest in Demers at December 31, 2021. $107,800. $140,000. $80,000. $160,800, $146,800. Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common stock of $300,000 and retained earnings of $210,000 on that date. Equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. Any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. Based on an annual review, goodwill has not been impaired. Demers earns income and pays dividends as follows: 2019 2020 2021 Net income 100,000 120,000 S 130,000 Dividends 40,000 50,000 60,000 Assume the partial equity method is applied. 13. Compute Pell's investment in Demers at December 31, 2019. $625,000. $574,400. $548,000. $542,400 $532,000. 14. Compute Pell's investment in Demers at December 31, 2020. $676,000. $629,000. $580,000. $604,000. $572,000. 15. Compute Pell's investment in Demers at December 31, 2021. S780,000. $660,000. $785,000. $676,000, $620,000. 16. Compute the noncontrolling interest in the net income of Demers at December 31, 2020. $18,400. $14,000. $22,600. $24,000. $12,600. 17. Compute the noncontrolling interest in the net income of Demers at December 31, 2021. $20,400. $26,000. $24,600. $14,000. $12,600. 18. Compute the noncontrolling interest in Demers at December 31, 2019. $135,600. $114,000. $112,000. $100,000. $110,600. 19. Compute the noncontrolling interest in Demers at December 31, 2020. $124,000. $126,000. $109,200. $149,600. $148,200. 20. Compute the noncontrolling interest in Demers at December 31, 2021. $107,800. $140,000. $80,000. $160,800, $146,800.
Expert Answer:
Answer rating: 100% (QA)
13 5 Computi Pells tovestment io Demers al Dec 31 2019 Ang 542400 loitial In... View the full answer
Posted Date:
Students also viewed these accounting questions
-
MY NOTES ASK YOUR TEACHER (a) A small Styrofoam bead with a charge of -60.0 nC is at the center of an insulating plastic spherical shell with an inner radius of 20.0 cm and an outer radius of 34.0...
-
Rules decided to use the partial equity method to account for the investment. The current balance in the investment account is $430,000. Describe in words how this balance was derive
-
Your classmate Kate believes that the equity method is applied with a strict application of the 20% rule. Do you agree? Explain.
-
Joshua Tree Inc. reported that at the end of 2012 net accounts receivable of 2,050 (the net value at the end of 2011 was 1,090). Their allowance for doubtful accounts at the end of 2012 was 150 (the...
-
Gils outside basis in his interest in the GO Partnership is $100,000. In a proportionate non-liquidating distribution, the partnership distributes to him cash of $30,000, inventory (fair market value...
-
R. Georges, a fashionable clothing store that also has a catalog business, would like to keep track of the customers coming into the store so as to expand its mailing list. a. Design and draw a...
-
A 20-ounce bottle of Dasani water typically costs about \($1.99\) at a convenience store. At an airport shop, that same bottle of Dasani water could cost \($2.89\) or more. The costs of operating...
-
An injection molding machine has a first cost of $1,050,000 and a salvage value of $225,000 in any year the machine is sold. The maintenance and operating cost is $235,000 with an annual gradient of...
-
11. The current in a metallic conductor is plotted against voltage at two different temperatures T and T2. Which is correct :- Current 2 (1) T Voltage (2) T
-
The links of the chain are made steel that has a working stress of 300 MPa in tension. If the chain is to support the force P = 45 kN, determine the smallest safe diameter d of the links. P
-
What is your thoughts/reflection on Jacques Ellul book "The Technological Society " One chair?
-
The difference between the book basis and tax basis of the assets and liabilities of Walang Pagod Corporation at the end of 2021 are as follows: Installment accounts receivable Litigation Liability...
-
In the topic of Lab Rats: How Silicon Valley made work miserable for the rest of us Lyons talks about the downside of constant change in the organizational context, with plenty of examples to back up...
-
Watching the following three youtube videos discuss: 1) Your thoughts on mandatory minimums? 2) Do you think mandatory minimums have the potential to be biased? If yes, how so? 3) What is one change...
-
You work as a management intern at a large clothing retailer. You have been trying to convince your boss about the value of understanding organizational behaviour for the firm's performance. Your...
-
Design and implement a class called Flight that represents an airline flight. It should contain instance data that represents the airline name, flight number, and the flight's origin and destination...
-
1) An analysis of the simple pendulum shows that the slope of the line on the second plot with L on the x-axis and T2 on the y-axis should be: slope = 4 m/g where g is the acceleration due to gravity...
-
Use the formula to determine the value of the indicated variable for the values given. Use a calculator when one is needed. When necessary, use the key on your calculator and round answers to the...
-
A blender does 5000 J of work on the food in its bowl. During the time the blender runs, 2000 J of heat is transferred from the warm food to the cooler environment. What is the change in the thermal...
-
Which system contains more atoms: 5 mol of helium (A = 4) or 1 mol of neon (A = 20)? A. Helium B. Neon C. They have the same number of atoms.
-
What is the ratio T f /T i for this process? A. 1/4 B. 1/2 C. 1 (no change) D. 2 E. 4 F. There is not enough information to decide. p (atm) 4 3- 2 1 0- 0 2 -V (m)
Study smarter with the SolutionInn App