Essay
Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2012. Annual amortization of $22,000 resulted from this transaction. On the date of the acquisition, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance for retained earnings. Fesler reported net income of $100,000 in 2012 and $68,000 in 2013, and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2012 and $36,000 in 2013, and paid dividends of $10,000 in dividends each year.
Assume that Fesler's reported net income includes Equity in Subsidiary Income.
If the parent's net income reflected use of the initial value method, what were the consolidated retained earnings on December 31, 2013?
Correct Answer:
Verified
Correct Answer:
Verified
Q4: For an acquisition when the subsidiary retains
Q4: Dutch Co. has loaned $90,000 to its
Q24: Perry Company acquires 100% of the stock
Q26: Cashen Co. paid $2,400,000 to acquire all
Q26: How is the fair value allocation of
Q27: Prince Company acquires Duchess, Inc. on January
Q30: Following are selected accounts for Green Corporation
Q31: Under the partial equity method, the parent
Q33: Factors that should be considered in determining
Q34: On January 1, 2012, Cale Corp. paid