Business, 28.05.2020 01:03 122333444469

Parker, Inc., acquires 70 percent of Sawyer Company for $420,000.

The remaining 30 percent of Sawyer's outstanding shares continue to trade at a collective value of $174,000.

On the acquisition date, Sawyer has the following accounts:

Book Value Fair Value
Current assets $ 210,000 $ 210,000
Land 170,000 180,000
Buildings 300,000 330,000
Liabilities (280,000 ) (280,000 )
The buildings have a 10-year life.

In addition, Sawyer holds a patent worth $140,000 that has a five-year life but is not recorded on its financial records.

At the end of the year, the two companies report the following balances:

Parker Sawyer
Revenues $ (900,000 ) $ (600,000 )
Expenses 600,000 400,000
a. Assume that the acquisition took place in January.

1. What figures would appear in a consolidated income statement for this year?

b. Assume that the acquisition took place on April 1.

Sawyer's revenues and expenses occurred uniformly throughout the year.

What amounts would appear in a consolidated income statement for this year?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 04:50

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.

Answers: 1

Answer

Business, 22.06.2019 15:00

Which of the following is least likely to a team solve problems together

Answers: 1

Answer

Business, 22.06.2019 18:00

When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?

Answers: 1

Answer

Business, 22.06.2019 23:30

Which external factor has enabled addition of special effects in advertisements and tracking of responses of customers over websites?

Answers: 3

Answer

You know the right answer?

Parker, Inc., acquires 70 percent of Sawyer Company for $420,000.

The remaining 30 perc...

Questions