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61.Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012.Assume the equity method is used. The following data are available pertaining to Gargiulo's income.
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106.Caldwell Inc. acquired 65% of Club Corp. for $2,600,000. Club owned a building and equipment with ten-year useful lives. The book value of these assets was $830,000, and the fair value was $950,000. For Club's other assets and liabilities, book value was equal to fair value. The total fair value.
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116.Strayten Corp. is a wholly owned subsidiary of Quint Inc. Quint decided to use the initial value method to account for this investment. During 2013, Strayten sold Quint goods which had cost $48,000. The selling price was $64,000. Quint still had one-eighth of the goods purchased from Strayten on hand.
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Multiple Choice Questions1.On November 8, 2013, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. From the perspective of the combination, when is the gain on the sale of the land realized?A.Proportionately over a designated period of.
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41.When comparing the difference between an upstream and downstream transfer of inventory, and using the initial value method, which of the following statements is true when there is a non-controlling interest? A.Income from subsidiary will be lower by the amount of the ending inventory profit multiplied by the non-controlling interest percentage.
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Essay Questions97.For each of the following situations (1 - 10), select the correct entry (A - E) that would be required on a consolidation worksheet.(A.) Debit retained earnings.(B.) Credit retained earnings.(C.) Debit investment in subsidiary.(D.) Credit investment in subsidiary.(E.) None of the above.___ 1. Upstream beginning inventory profit, using the.
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101.During 2013, Edwards Co. sold inventory to its parent company, Forsyth Corp. Forsyth still owned the entire inventory purchased at the end of 2013. Why must the gross profit on the sale be deferred when consolidated financial statements are prepared at the end of 2013? f a non-controlling interest? .
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116.McLaughlin, Inc. acquires 70 percent of Ellis Corporation on September 1, 2014, and an additional 10 percent on November 1, 2015. Annual amortization of $8,400 attributed to the controlling interest relates to the first acquisition. Ellis reports the following figures for 2015: Without regard for this investment, McLaughlin earns $480,000 in.
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115.Yoderly Co., a wholly owned subsidiary of Nelson Corp., sold goods to Nelson near the end of 2013. The goods had cost Yoderly $105,000 and the selling price was $140,000. Nelson had not sold any of the goods by the end of the year.Required:Prepare ConsolidationEntry TI and ConsolidationEntry G that.
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81.Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2012, for $75,000. The land originally cost Leo $60,000. Stiller reported net income of $125,000 and $140,000 for 2012 and 2013, respectively. Leo uses the equity method to account for its investment.Compute income from.
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51.Gargiulo Company, a 90% owned subsidiary of Posito Corporation, sells inventory to Posito at a 25% profit on selling price. The following data are available pertaining to intra-entity purchases. Gargiulo was acquired on January 1, 2012.Assume the equity method is used. The following data are available pertaining to Gargiulo's income.
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108.On January 1, 2014, Glenville Co. acquired an 80% interest in Acron Corp. for $500,000. There is no active trading market for Acron's stock. The fair value of Acron's net assets was $600,000 and Glenville accounts for its interest using the acquisition method. Determine the amount of goodwill to be recognized.
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125.On January 1, 2013, Musial Corp. sold equipment to Matin Inc. (a wholly-owned subsidiary) for $168,000 in cash. The equipment originally cost $140,000 but had a book value of only $98,000 when transferred. On that date, the equipment had a five-year remaining life. Depreciation expense was calculated using the straight-line.
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31.Strickland Company sells inventory to its parent, Carter Company, at a profit during 2012. One-third of the inventory is sold by Carter in 2012.In the consolidation worksheet for 2012, which of the following choices would be a debit entry to eliminate unrealized intra-entity gross profit with regard to the 2012.
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