Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. how do you find inventories sold? how do you k

How do you find inventories sold? How do you know to...

90.2K

Verified Solution

Question

Accounting

How do you find inventories sold?
How do you know to amortize $36,000/10years to get $3,600? image
image
P 2-3 Computations for investee when excess allocated to inventories, building, and goodwill Vat Company acquired a 30 percent interest in the voting stock of Zel Company for $662,000 on January 1, 2011, when Zel's stockholders' equity consisted of capital stock of $1,200,000 and retained earnings of $800,000. At the time of Vat's investment, Zel's assets and liabilities were recorded at their fair values, except for inventories that were undervalued by $60,000 and a building with a 10-year re- maining useful life that was overvalued by $120,000. Zel has income for 2011 of $200,000 and pays dividends of $100,000. Assume undervalued inventories are sold in 2011. REQUIRED 1. Compute Vat's income from Zel for 2011. 2. What is the balance of Vat's Investment in Zel account at December 31, 2011? What is Vat's share of Zel's recorded net assets at December 31, 2011

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. After big stock price run ups, debt ratio falls, but firms tend to issue equity...

Finance
Q

On January 1 of the current? year, Reynoso Manufacturing Company purchased a metal cutting and polishing...

Accounting
Q

Some fats, like oil, are liquid at room temperature, while others, such as butter, are solid....

Biology
Q

Suppose there are two one-year assets. You cannot buy a fractional portion of either asset. Asset...

Finance
Q

of a particle which represents SHM A y sinot cos ot B y sin ot...

Physics
Q

1 point Match the number of sides a polygon has with it s sum of...

Geometry
Q

n Posttest Points 1 Question 9 In the given right triangle A and C have...

Geometry
Q

12 k ces Allied Merchandisers was organized on May 1 Macy Company is a major...

Basic Math
Q

3 51

Algebra
Q

Harriet's interest and gains on investments for 2023 were as follows: Interest on U.S. government...

Accounting
Q

On May 31,2026, Brigham Company paid $3,780,000 to acquire all of the common stock of...

Accounting
Q

Under which of the following cirrcumstances will the personal representative neeed to file Form 1310...

Accounting