On January 1, 20X4, Plimsol Company acquired 100 percent of Shipping Corporation's voting shares, at underlying book value. Plimsol accounts for its investment in Shipping at cost. Shipping's retained earnings was $75,000 on the date of acquisition. On December 31, 20X4, the trial balance data for the two companies are as follows: Plimsol Co.Shipping Corp.ItemDebitCreditDebit Credit Current Assets$100,000 $75,000 Depreciable Assets (net) 200,000 150,000 Investment in Shipping Corp. 125,000 Other Expenses 60,000 45,000 Depreciation Expense 20,000 15,000 Dividends Declared 25,000 15,000 Current Liabilities $40,000 $25,000 Long-Term
Debt 75,000 50,000 Common Stock 100,000 50,000 Retained Earnings 150,000 75,000 Sales 150,000 100,000 Dividend Income, Shipping Corp. 15,000 $530,000 $530,000 $300,000 $300,000 Based on the information provided, what amount of retained earnings will be reported in the consolidated balance sheet prepared on December 31, 20X4?
A. $210,000
B. $310,000
C. $225,000
D. $235,000
Answer: D
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Fill in the blank(s) with correct word
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Gump Shrimp Company On January 1, 2011, Gump Shrimp Company purchased a ship for $1,000,000. It has a ten-year useful life and a salvage value of $100,000. The company uses the double-declining-balance method. Refer to the information provided for Gump Shrimp Company. What was the depreciation expense for Gump Shrimp for the year ended December 31, 2012?
A) $ -0- B) $180,000 C) $160,000 D) $200,000
As team leader you have called a meeting to determine your team name. You want a name that is easily recognizable. The team wants to develop a logo to brand the team. To help with motivation you have also suggested that the team develop a slogan. According to the case above, what part of the team brand will serve as a visual reminder of the team?
What will be an ideal response?