Business, 23.07.2021 01:20 Bvrz6198

PLE Corp. purchased 100% of the outstanding voting shares of SPP Inc. on December 31, 20X4. On this date, SPP reported $200,000 in common shares and $420,000 in retained earnings. The following AD schedule has been provided regarding the purchase: AD and amortization schedule
Acquisition
(SFP) SCI SFP SCI SFP
12/31/20X4 20X5 12/31/20X5 20X6 12/31/20X6
Inventory $ 35,000 $ 35,000
Land 170,000 $ 170,000 $ 170,000
Building and
equipment 315,000 31,500 283,500 $ 31,500 252,000
Long-term
debt (215,000) (86,000) (129,000) (86,000) (43,000)
Goodwill 300,500 300,500 20,500 280,000
$ 605,500 $(19,500) $625.000 $(34.000) $ 659.000
During 20X6, in their legal entity income statements, PLE reported $140,000 and SPP reported $190,000 of interest expense. What amount would be reported as consolidated interest expense on the consolidated SCI?
a) $244,000
b) $287,000.
c) $296,000.
d) $416,000.

Answers: 3

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PLE Corp. purchased 100% of the outstanding voting shares of SPP Inc. on December 31, 20X4. On this...

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