Selected balance sheet items for P Corporation and its 90%-owned subsidiary, S Corporation, on December 31,...
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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:
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Related Book For
Advanced Accounting
ISBN: 978-0134472140
13th edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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