On January 1, 202, LeBron Company acquired 100 percent of the outstanding voting shares of...
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On January 1, 202, LeBron Company acquired 100 percent of the outstanding voting shares of Jordan, Incorporated, for $774,000 cash. At January 1, 2022, Jordans net assets had a total carrying amount of $541,800. Equipment (eight-year remaining life) was undervalued on Jordans financial records by $100,000. Any remaining excess fair over book value was attributed to a database developed by Jordan (four-year remaining life), but not recorded on its books. LeBron applies the equity method to account for its investment in Jordan. Each year since the acquisition, Jordan has declared a $38,500 dividend. Jordan recorded net income of $88,500 in 2022 and $107,900 in 2023.
Selected account balances from the two companies individual records were as follows:
ITEMS LEBRON JORDAN
2024 Revenues $640,000 $376,600
2024 Expenses 393,000 275,000
2024 Income from Jordan 56,050 -
Retained Earnings, 12/31/24 362,650 216,300
A. What is consolidated net income for LeBron and Jordan for 2024?
B. What is LeBrons consolidated retained earnings balance at December 31, 2024?
C. On its December 31, 2024, consolidated balance sheet, what amount should LeBron report for Jordans database?
I HAVE 1H LEFT ON THIS ASSIGMENT PLS HELP!
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