Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. assume a parent company acquired 80% of the outsta

Assume a parent company acquired 80% of the outstanding voting common stock of a subsidiary...

90.2K

Verified Solution

Question

Accounting

Assume a parent company acquired 80% of the outstanding voting common stock of a subsidiary on January 1,2021. On the acquisition date, the
identifiable net assets of the subsidiary had fair values that approximated their recorded book values except for a patent, which had a fair value of
$156,000 and no recorded book value. On the date of acquisition, the patent had five years of remaining useful life and the parent company
amortizes its intangible assets using straight line amortization. During the year ended December 31,2022, the subsidiary recorded sales to the
parent in the amount of $187,200 On these sales, the subsidiary recorded pre-consolidation gross profits equal to 25%. Approximately 30% of this
merchandise remains in the parent's inventory at December 31,2022. The following summarized pre-consolidation financial statements are for the
parent and the subsidiary for the year ended December 31,2022:
Based on this information, determine the balance for Consolidated Expenses:
Select one:
a. $3,494,400
b. $3,352,440
C. $3,120,000
d. $3,539,640
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

1.)A.)The lac operon is inducible by the presence of lactose. Loss-of-function mutations in the lacI gene,...

Physics
1.2K views

Consider the figure below which shows a negative charge and a point marked with an...

Geometry
1.2K views

4 Almost everyone has played the rock paper scissors game at some point Two players...

Basic Math
1.2K views

Sarah's English assignment is to read 80 pages. She has read of the assignment. How...

Algebra
1.2K views

The pitch of a roof is its slope Find the pitch of the of the...

Accounting
1.2K views

it's January 2 and Twin Pine Farm is putting together its annual net worth statement....

Accounting
1.2K views

Gipple Corporation makes a product that uses a material with the quantity standard...

Accounting
1.2K views

calculate Domino's times interest earned (or coverage) ratio in the years 2017 & 2018....

Accounting
1.2K views

XBRL use in australia and USA executive summary of 600 words

Accounting
1.2K views

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There...

Accounting
1.2K views

Data table Data tabble Requirement 1. Calsulate the tasevoume verianch ard fas bie buoget ear...

Finance
1.2K views

B eBook Investment Timing Option: Option Analysis The Karns Oil Company is deciding whether to...