2 Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% grossprofit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson.Anderson was acquired on January 1, 2020.Purchases by PhilbinEnding inventory on Philbin'sbooksAnderson's net incomeDividends paid byAnderson2021$12,0002020$8,0001,200 4,000 3,0002022$15,000Assume the equity method is used. The following data are available pertaining to Anderson's Income and dividends.2020 2021 2022$70,000 $85,000 $94,00010,000 10,000 15,000Multiple ChoiceAssuming there are no excess amortizations associated with the consolidation, and no other intra-entity assettransfers, compute the net income attributable to the noncontrolling interest of Anderson for 2022. Multiple Choice$9,325.$9,400.$9,425.$9,375.$8,485.

Under the equity system, the investor originally records the investment at cost. As the investee…

Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Purchases by Philbin Ending inventory on Philbin's books 2022 2020 2021 $8,000 $12,000 $15,000 1,200 4,000 3,000

Anderson Company, a 90% owned subsidiary of Philbin Corporation, transfers inventory to Philbin at a 25% gross profit rate. The following data are available pertaining specifically to Philbin's intra-entity purchases from Anderson. Anderson was acquired on January 1, 2020. Purchases by Philbin Ending inventory on Philbin's books 2022 2020 2021 $8,000 $12,000 $15,000 1,200 4,000 3,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 14RE: Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a...

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For the year ended 31/12/2020, the financial statements of ABC Company were authorized for issue on 31/3/2021. On 31/12/2020, ABC reported inventory in its Balance Sheet at NRV ($7000) since the cost was $10000. On 17/2/2021, ABC entered into an agreement to sell the entire inventory to a customer for $7700 (immaterial) How should IAS 10 account for this event? Select one: a. Disclosure in the notes b. Accounts receivable Sales revenue C. NO Action d. Inventory Cost of goods sold e. All answers are false f. Loss on Inventory write-down Inventory g. Inventory 7700 h. Cost of goods sold Inventory 700 2300 700 Gain on reversal of Inventory write- down 2300 7700 700 2300 700 2300
Bla Limited sells inventory to its parent, Whi Limited at cost price plus 125% mark-up. • Closing inventories in the records of Whi Limited on 30 June 2022 amount to R157 500. • Net realisable value of inventory on hand in the books of Whi limited amounts to R107 500 on 30 June 2022. Ignore tax implications Required:Show how the journal entry would be recorded in the books of Whi Limited on 30 June 2022 in accordance with IAS 2. And also show pro forma consolidation journal for the group.
Below are the Statements of Comprehensive Income of Riego and Mercadejas Companies for 2020. Riego Company's Statement of Comprehensive Income was prepared before it reported its share of Mercadejas Company's income. Riego Company uses the equity method. Mercadejas Co. Riego Co. 800,000 320,000 480,000 380,000 100,000 Sales Cost of sales Gross profit Operating Expenses Net Income Inventories, 1/1/20: Purchased from outsiders Purchased intercompany Inventories, 12/31/20: Purchased from outsiders Purchased intercompany 200,000 90,000 110,000 60,000 50,000 15,000 20,000 10,000 25,000 5,000 5,000 The gross profit rate, as a percentage of sales, has been stable for several years and 60% of Mercadejas Company's sales are to Riego Company. 75% of Mercadejas Company's was acquired by Riego Company some time ago at book value. Mercadejas Company's equity at December 31, 2020 consisted of P20,000 of capital stock and P60,000 of retained earnings. REQUIRED: Compute the amount of the following in…
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The data shown below were obtained from the financial records of the BST Corporation for the year ended December 31, 2020. Sound Break Corporation Income and Retained Earnings Statement For the year Ended December 31, 2020 Net Sales P1,000,000 Cost of Goods Sold: Inventory, Dec. 31, 2019 P250,000 Purchases 720,000 Total Goods Available P970,000 Inventory 220,000 750,000 Gross Margin on Sales Selling and Administrative (including P 250,000 Depreciation of P20,000) 125,000 Net Income before Tax P 125,000 Provision for Income Tax 35,000 Net Income for the Year P 90,000 Retained Earnings, beginning 130,000 Total P 220,000 Dividends Paid 30,000 Retained Earnings, December 31, 2020 P 190,000 Sound Break Corporation BALANCE SHEET December 31, 2019 and 2020 ASSETS 2019 2020 Current Assets: Cash P 75,000 P 85,000 Marketable Securities 25,000 25,000 Trade Receivables, net 185,000 245,000 Inventory, at cost 250,000 220,000 Prepaid Expenses 15,000 10,000 Total Current Assets P550,000 P585,000…
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