On January 1, 2018, Pride, Inc. acquired 80% of the outstanding voting common stock of Strong Corp. for $364,000. There is no active market for Strong's stock. Of this payment, $28,000 was allocated to equipment (with a five-year life) that had been undervalued on Strong's books by $35,000. Any remaining excess was attributable to goodwill, which has not been impaired.As of December 31, 2018, before preparing the consolidated worksheet, the financial statements appeared as follows: Pride, Inc. Strong Corp.Revenues$420,000 $280,000 Cost of goods sold (196,000) (112,000)Operating expenses (28,000) (14,000)Net income$196,000) $154,000 Retained earnings, 1/1/18$420,000 $210,000 Net income (above) 196,000 154,000 Dividends paid 0 0 Retained earnings,
12/31/18$616,000 $364,000 Cash and receivables$294,000 $126,000 Inventory 210,000 154,000 Investment in Strong Corp 364,000 0 Equipment (net) 616,000 420,000 Total assets$1,484,000 $700,000 Liabilities$588,000 $196,000 Common stock 280,000 140,000 Retained earnings, 12/31/18 (above) 616,000 364,000 Total liabilities and stockholders' equity$1,484,000 $700,000 ??During 2018, Pride bought inventory for $112,000 and sold it to Strong for $140,000. Only half of the inventory purchase price had been remitted to Pride by Strong at year-end. As of December 31, 2018, 60% of these goods remained in the company's possession.?What is the consolidated total for equipment (net) at December 31, 2018?
A. $1,066,800.
B. $1,064,000.
C. $1,069,600.
D. $1,058,400.
E. $ 952,000.
Answer: B
You might also like to view...
Which one of the following is the last step in the accounting cycle?
a. Journalizing business transactions b. Recording and posting adjustments c. Closing the accounts d. Preparing financial statements
As a conformist is very loyal to a leader, a leader might mistakenly think that a conformist is ______.
a. not very effective b. highly effective c. disengaged d. alienated
Kevin Pinker is a freelance computer programmer who writes computer algorithms for companies such as SoftStar and BlueHill. SoftStar and BlueHill use these algorithms to make specific programs based on online market research
These programs are then sold to the online retailer, Abundon, which then sells them to individual consumers and businesses. Which of the following is a marketing intermediary in this chain? A) SoftStar B) BlueHill C) the consumer D) Abundon E) Kevin Pinker
Through its CRM program, an online clothing company records information about each time a customer makes a purchase or clicks on a link through an email or an online advertisement. These interactions are examples of ________
A) customizations B) touchpoints C) analytics D) optimizations E) impressions