Question

In: Accounting

Jaynes Inc. acquired all of Aaron Co.'s common stock on January I, 2017, by issuing 11,000...

Jaynes Inc. acquired all of Aaron Co.'s common stock on January I, 2017, by issuing 11,000 shares of SI par value common stock. Jaynes' shares had a $17 per share fair value. On that date, Aaron reported a net book value of S120,000. However, its equipment (with a five-year remaining life) was undervalued by $6,000 in the company's accounting records. Any excess of consideration transferred over fair value of assets and liabilities is assigned to an unrecorded patent to be amortized over ten years. The following figures came from the individual accounting records of these two companies as of December 31, 2017Aaton Co.276,000 144,000 Jaynes Inc S 720,000 528,000 Not given 00,000 Revenues Expenses Investment income Dividends paid 60,000 The following figures came from the individual accounting records of these two companies as of December 31, 2018 Aaron Co 336.000 180,000 Jaynes Inc Revenues Expenses Investment income Dividends paid Equipment Retained carnings, 12/31 18 balance 840,000 552,000 Not given 110,000 600,000 50,000 360,000 960.000 216000

A.What was the total for consolidated patents as of December 31, 2018?

B. What was consolidated equipment as of December 31, 2018?

C.What balance would Jaynes' Investment in Aaron Co. account have shown on December 31, 2018, when the equity method was applied for this acquisition?

D. What was consolidated net income for the year ended December 31, 2018?

Please provide solutions and answers

Solutions

Expert Solution

ekkarill92 answered 4 months ago
Next > < Previous

Related Solutions

) Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2017....
) Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2017. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Additional paid-in capital 60,000 Buildings (net) (20-year life) 140,000 Cash and short-term investments 70,000 Common stock 300,000 Equipment (net) (8-year life) 240,000 Intangible assets (indefinite life) 110,000 Land 90,000 Long-term liabilities (mature 12/31/19) 180,000 Retained earnings, 1/1/17 120,000 Supplies 20,000 Totals $ 720,000 $...
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017,...
1)Presents Inc. acquired all of the outstanding common stock of Santa Co. on January 1, 2017, for $257,000. Annual amortization of $19,000 resulted from this acquisition. Presents reported net income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in dividends each year. Santa reported net income of $40,000 in 2017 and $47,000 in 2018 and paid $10,000 in dividends each year. On the consolidated financial statements for 2017, a)what amount should have been shown for Equity in...
Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2017....
Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2017. Annual amortization of $22,000 resulted from this transaction. On the date of the acquisition, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance for retained earnings. Fesler reported net income of $100,000 in 2017 and $68,000 in 2018, and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2017 and $36,000 in 2018, and paid...
Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2020. As...
Matthews Co. acquired all of the common stock of Jackson Co. on January 1, 2020. As of that date, Jackson had the following trial balance: Debit Credit Accounts payable $ 60,000 Accounts receivable $ 50,000 Additional paid-in capital 60,000 Buildings (net) (20-year life) 140,000 Cash and short-term investments 70,000 Common stock 300,000 Equipment (net) (8-year life) 240,000 Intangible assets (indefinite life) 110,000 Land 90,000 Long-term liabilities (mature 12/31/22) 180,000 Retained earnings, 1/1/20 120,000 Supplies 20,000 Totals $ 720,000 $ 720,000...
On January 1, 2018, Deuce Inc. acquired 15% of Wiz Co.’s outstanding common stock for $62,400...
On January 1, 2018, Deuce Inc. acquired 15% of Wiz Co.’s outstanding common stock for $62,400 and did not exercise significant influence. Wiz earned net income of $96,000 in 2018 and paid dividends of $36,000. The fair value of Deuce’s investment was $80,000 at December 31, 2018. On January 3, 2019, Deuce bought an additional 10% of Wiz for $54,000. This second purchase gave Deuce the ability to significantly influence the decision making of Wiz. During 2019, Wiz earned $120,000...
In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc.,...
In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $761,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $4,095,000 with liabilities of $935,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2017, Martes reported net income of $232,000. In 2018, Martes reported...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $348,000. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $205,800. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $232,000. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $52,300 and an unrecorded customer list (15-year remaining life) assessed at a...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $362,400. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $214,200. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $241,600. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $82,600 and an unrecorded customer list (15-year remaining life) assessed at a...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $346,200. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $204,600. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $230,800. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $79,900 and an unrecorded customer list (15-year remaining life) assessed at a...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of...
On January 1, 2017, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $351,600. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $207,900. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $234,400. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $88,600 and an unrecorded customer list (15-year remaining life) assessed at a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT