60.1K

Verified Solution

Link Copied!

Tyler Company acquired all of Jasmine Company's outstanding stock on January 1, 2019, for $207,400 in cash. Jasmine had a book value of only $138,000 on that date. However, equipment (having an eight-year remaining life) was undervalued by $67.200 on Jasmine's financial records. A building with a 20-year remaining life was overvalued by $17,200. Subsequent to the acquisition, Jasmine reported the following: Dividends Net Income Declared 2019 $ 75,900 $10,000 83, 100 40,000 2021 48,600 20,000 2020 In accounting for this investment. Tyler has used the equity method. Selected accounts taken from the financial records of these two companies as of December 31, 2021, follow: Revenues-operating Expenses Equipment (net) Buildings (net) Common stock Retained earnings, 12/31/21 Tyler Company $(310,000) 227,000 460,000 344,000 (299,000) (606, 000) Jasmine Company $(146,000) 97,400 64,500 73,800 (50,400) (173,880) Determine the following account balances as of December 31, 2021: (Input all amounts as positive values.) Amounts a. Investment in Jasmine Company b. Equity in Subsidiary Earnings c. Consolidated Net Income d. Consolidated Equipment (net) Consolidated Buildings (net) 1. Consolidated Goodwill (net) g. Consolidated Common Stock h. Consolidated Retained Earnings, 12/31/21 e

Answer & Explanation Solved by verified expert

See Answer