Business, 21.12.2019 07:31 dai77

Pell company acquires 80% of demers company for $500,000 on january 1, 2019. demers reported common stock of $300,000 and retained earnings of $210,000 on that date. equipment was undervalued by $30,000 and buildings were undervalued by $40,000, each having a 10-year remaining life. any excess consideration transferred over fair value was attributed to goodwill with an indefinite life. based on an annual review, goodwill has not been impaired.
demers earns income and pays dividends as follows:
2019 2020 2021
net income $ 100,000 $ 120,000 $ 130,000
dividends 40,000 50,000 60,000

assume the partial equity method is applied.

1. how much does pell record as income from demers for the year ended december 31, 2019?

multiple choice

a. $80,000.

b. $74,400.

c. $73,000.

d. $42,400.

e. $41,000.

2. how much does pell record as income from demers for the year ended december 31, 2020?

multiple choice

a. $90,400.

b. $89,000.

c. $50,400.

d. $96,000.

e. $56,000.

3. how much does pell record as income from demers for the year ended december 31, 2021?

multiple choice

a. $98,400.

b. $56,000.

c. $104,000.

d. $97,000.

e. $50,400.

4. compute the noncontrolling interest in the net income of demers at december 31, 2019.

multiple choice

a. $20,000.

b. $12,000.

c. $18,600.

d. $10,600.

e. $14,400.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 22:40

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.

Answers: 1

Answer

Business, 23.06.2019 01:30

James jones is the owner of a small retail business operated as a sole proprietorship. during 2017, his business recorded the following items of income and expense: revenue from inventory sales $ 147,000 cost of goods sold 33,500 business license tax 2,400 rent on retail space 42,000 supplies 15,000 wages paid to employees 22,000 payroll taxes 1,700 utilities 3,600 compute taxable income attributable to the sole proprietorship by completing schedule c to be included in james’s 2017 form 1040. compute self-employment tax payable on the earnings of james’s sole proprietorship by completing a 2017 schedule se, form 1040. assume your answers to parts a and b are the same for 2018. further assume that james's business is not a service business, and that it has $155,000 unadjusted basis in tangible depreciable property. calculate james's 2018 section 199a deduction.

Answers: 1

Answer

Business, 23.06.2019 11:00

Jessica thinks that everyone would be better off if financial institutions stopped issuing credit. which statement accurately supports her argument? people would pay less in interest fees. people would have greater protection in case of emergencies. people would need to save for many years to buy a home or open a business. people would support the economy through purchases of more goods and services.

Answers: 1

Answer

Business, 23.06.2019 20:00

The secret to effective sales is to have a unique selling proposition. good personality.

Answers: 1

Answer

You know the right answer?

Pell company acquires 80% of demers company for $500,000 on january 1, 2019. demers reported common...

Questions