Chat with AI
Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Edition 12ISBN: 978-0077862220 Exercise 16
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2015:
Gibson acquired 60 percent of Davis on April 1, 2015, for $528,000. On that date, equipment owned by Davis (with a 5-year remaining life) was overvalued by $30,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $352,000. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2015.
a. Prepare a consolidated income statement for the year ending December 31, 2015.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2015:
Gibson acquired 60 percent of Davis on April 1, 2015, for $528,000. On that date, equipment owned by Davis (with a 5-year remaining life) was overvalued by $30,000. Also on that date, the fair value of the 40 percent noncontrolling interest was $352,000. Davis earned income evenly during the year but declared the $40,000 dividend on November 1, 2015.
a. Prepare a consolidated income statement for the year ending December 31, 2015.
b. Determine the consolidated balance for each of the following accounts as of December 31, 2015:
Explanation
Verified
Verified
Unlike a normal income statement, a cons...
Advanced Accounting 12th Edition by Joe Ben Hoyle,Thomas Schaefer , Timothy Doupnik
Why don’t you like this exercise?
Other Minimum 8 character and maximum 255 character
Character 255
