Business, 27.03.2020 01:51 j8838

Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2018, the companies had the following account balances:

Akron Toledo
Sales 1,100,000 600,000
Cost of Goods Sold 500,000 400,000
Operating Expense 400,000 220,000
Investments Income Not Given 0
Dividends Declared 80,000 30,000

Intra-entity sales of $320,000 occurred during 2014 and again in 2015.
This merchandise cost $240,000 each year.
Of the total transfers, $70,000 was still held on December 31, 2014, with $50,000 unsold on December 31, 2015.

a. For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here?
b. Prepare a consolidated income statement for the year ending December 31, 2018.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 02:50

Acompany set up a petty cash fund with $800. the disbursements are as follows: office supplies $300 shipping $50 postage $30 delivery expense $350 to create the fund, which account should be credited? a. postage b. cash at bank c. supplies d. petty cash

Answers: 2

Answer

Business, 22.06.2019 09:40

Wilson center is a private not-for-profit voluntary health and welfare entity. during 2017, it received unrestricted pledges of $638,000, 65 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). officials estimate that 14 percent of all pledges will be uncollectible. a. how much should wilson center report as contribution revenue for 2017? b. in addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to wilson center at no charge. without these donated services, the organization would have hired an additional staff person. how should wilson center record the contributed service?

Answers: 2

Answer

Business, 22.06.2019 17:30

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?

Answers: 1

Answer

Business, 22.06.2019 18:50

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?

Answers: 3

Answer

You know the right answer?

Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per y...

Questions