Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $243,200 in...

 

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Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $243,200 in cash. Jasmine had a book value of only $168,600 on that date. However, equipment (having an eight-year remaining life) was undervalued by $57,600 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $10,200. Subsequent to the acquisition, Jasmine reported the following: 2016 2017 2018 Net Income $ 79,200 67,500 31,500 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow: Revenues-operating Expenses Equipment (net). Buildings (net) Dividends Declared $10,000 40,000 20,000 Common stock Retained earnings, 12/31/18 g. h. Jasmine Tyler Company Company $(420,000) $ (194,000) 257,000 162,500 386,000 a. Investment in Jasmine Company b. C. Consolidated Net Income d. Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) Consolidated Common Stock Consolidated Retained Earnings, 12/31/18 Determine the following account balances as of December 31, 2018: Equity in Subsidiary Earnings 268,000 (290,000) (426,000) 91,500 87,900 (76,800) (172,000) Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2016, for $243,200 in cash. Jasmine had a book value of only $168,600 on that date. However, equipment (having an eight-year remaining life) was undervalued by $57,600 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $10,200. Subsequent to the acquisition, Jasmine reported the following: 2016 2017 2018 Net Income $ 79,200 67,500 31,500 In accounting for this investment, Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2018, follow: Revenues-operating Expenses Equipment (net). Buildings (net) Dividends Declared $10,000 40,000 20,000 Common stock Retained earnings, 12/31/18 g. h. Jasmine Tyler Company Company $(420,000) $ (194,000) 257,000 162,500 386,000 a. Investment in Jasmine Company b. C. Consolidated Net Income d. Consolidated Equipment (net) e. Consolidated Buildings (net) f. Consolidated Goodwill (net) Consolidated Common Stock Consolidated Retained Earnings, 12/31/18 Determine the following account balances as of December 31, 2018: Equity in Subsidiary Earnings 268,000 (290,000) (426,000) 91,500 87,900 (76,800) (172,000)

Answer rating: 100% (QA)

A 1 2 a Investment in Jasmine company 3 243200792001000067500400003... View the full answer