Exam 5: A: Consolidated Financial Statements Intra-Entity Asset Transactions

Prepare a schedule of consolidated net income and the share to controlling and noncontrolling interests for 2018, assuming that Musial owned only 90% of Matin and the equipment transfer had been upstream

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2018.

In the consolidation worksheet for 2018, assuming Carter uses the initial value method of accounting for its investment in Strickland, which of the following accounts would be debited to defer unrecognized intra-entity gross profit with regard to the 2017 intra-entity transfers?

What is consolidated net income for 2018?

X-Beams Inc.owned 70% of the voting common stock of Kent Corp.During 2018, Kent made several sales of inventory to X-Beams.The total selling price was $180,000 and the cost was $100,000.At the end of the year, 20% of the goods were still in X-Beams' inventory.Kent's reported net income was $300,000.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest in Kent?

Compute the amortization of gain through a depreciation adjustment for 2017 for consolidation purposes.

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2017.

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute the net income attributable to the noncontrolling interest of Gargiulo for 2018.

Strayten Corp.is a wholly owned subsidiary of Quint Inc.Quint decided to use the initial value method to account for this investment.During 2018, 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 at the end of 2018. Required: Prepare Consolidation Entry *G, which would have to be recorded at the end of 2019.

For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2017 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise?

What is an intra-entity gross profit on a transfer of inventory, and how is it treated on a consolidation worksheet?

Which of the following will be included in a consolidation entry for 2017?

At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2017?

Included in the amounts for Pot's sales were Pot's sales for merchandise to Skillet for $140,000.There were no sales from Skillet to Pot.Intra-entity transfers had the same markup as sales to outsiders.Skillet had resold all of the intra-entity transfers (purchases) from Pot to outside parties during 2018.What are consolidated sales and cost of goods sold for 2018?

For consolidation purposes, what amount would be debited to cost of goods sold for the 2019 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2019 intra-entity transfer of merchandise?

Assuming there are no excess amortizations or other intra-entity transactions, compute the net income attributable to the noncontrolling interest of Devin for 2018.

Which of the following will be included in a consolidation entry for 2018?

Compute Stark's reported gain or loss relating to the land for 2019.

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2019.

On January 1, 2018, Race Corp.acquired 80% of the voting common stock of Gallow Inc.During the year, Race sold to Gallow for $450,000 goods that cost $330,000.At year-end, Gallow owned 15% of the goods transferred.Gallow reported net income of $204,000, and Race's net income was $806,000.Race decided to use the equity method to account for this investment.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest?