Business, 18.02.2020 02:14 duplessistoccara

Assume that prior to January 1, 2016, a Reporting Company owned a 10 percent interest in a Legal Entity. The Reporting Company acquired its 10 percent ownership interest in the Legal Entity on June 15, 1995 for $20,000, and correctly accounted for this investment under the cost method (i. e., it was a passive investment and it was not marketable). On January 1, 2016, the Reporting Company purchased an additional 30 percent interest in the Legal Entity for $150,000. As a result of an evaluation of the facts and circumstances on January 1, 2016, the Reporting Entity determined that the Legal Entity is a variable interest entity (VIE) and that the Reporting Company is the primary beneficiary of the VIE. The Reporting Company also determined that, on January 1, 2016, the fair value of the previously held 10 percent interest is $50,000. In addition, independent appraisals revealed that the fair value of the noncontrolling interest (i. e., the 60 percent not owned by the Reporting Company) is $300,000. On January 1, 2016, the Legal Entity has reported book values for its identifiable net assets equal to $350,000 and fair values for its identifiable net assets equal to $450,000. Assume that the Legal Entity is not a "business," as that term is defined in FASB ASC 805 ("Business Combinations"). Related to the initial consolidation of the Legal Entity on January 1, 2016, determine the following amounts:

a. Goodwill

b. Gain (Loss) on initial consolidation of the Legal Entity

Use a negative sign with answer to indicate a loss.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 21:30

White company has two departments, cutting and finishing. the company uses a job-order costing system and computes a predetermined overhead rate in each department. the cutting department bases its rate on machine-hours, and the finishing department bases its rate on direct labor-hours. at the beginning of the year, the company made the following estimates: department cutting finishing direct labor-hours 6,000 30,000 machine-hours 48,000 5,000 total fixed manufacturing overhead cost $ 264,000 $ 366,000 variable manufacturing overhead per machine-hour $ 2.00 " variable manufacturing overhead per direct labor-hour " $ 4.00 required: 1. compute the predetermined overhead rate for each department. 2. the job cost sheet for job 203, which was started and completed during the year, showed the following: department cutting finishing direct labor-hours 6 20 machine-hours 80 4 direct materials $ 500 $ 310 direct labor cost $ 108 $ 360 using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to job 203. 3. would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates?

Answers: 3

Answer

Business, 22.06.2019 04:30

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)

Answers: 2

Answer

Business, 22.06.2019 11:00

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period

Answers: 3

Answer

Business, 22.06.2019 11:50

True or flase? a. new technological developments can us adapt to depleting sources of natural resources. b. research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. c. in order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. d. countries with few natural resources will always be poor. e. as long as real gdp (gross domestic product) grows at a slower rate than the population, per capita real gdp increases.

Answers: 2

Answer

You know the right answer?

Assume that prior to January 1, 2016, a Reporting Company owned a 10 percent interest in a Legal Ent...

Questions