Paco Company acquired 100 percent of the stock of Garland Corp. on December 31, 20X8. The stockholder's equity section of Garland's balance sheet at that date is as follows:

Paco financed the acquisition by using $820,000 cash and giving a note payable for $400,000. Book value approximated fair value for all of Garland's assets and liabilities except for buildings which had a fair value $60,000 more than its book value and a remaining useful life of 10 years. Paco has an account payable to Garland in the amount of $30,000.

Questions:

a) How much investment was recorded by Paco on December 31, 20X8?

b) How much gain was recorded by Paco on December 31, 20X8?

c) How much differential was resulted in the consolidation entries on December 31, 20X8?

d) How much accumulated depreciation was credited by Paco in the consolidation entries on December 31, 20X8?

e) How much accumulated depreciation was credited by Paco in the consolidation entries on December 31, 2010?

(1) On January 1, 2018, Panorama Company acquired 80% of Scann Corporation for $6,400,000.

At the time of the acquisition, the book value of Scann's assets and liabilities was equal to the fair value except for equipment that was undervalued $80,000 with a four-year remaining useful life and inventories that were undervalued $20,000 and sold in 2018. Panorama separate net income in 2018 and 2019 was $1,100,000 and $1,150,000, respectively. Scann separate net income in 2018 and 2019 was $300,000 and $360,000, respectively. Dividend payments by Scann in 2018 and 2019 were $60,000 and $60,000, respectively

Required: Using equity method,

1. Calculate Investment in Scann shown on Panorama's ledger at December 31, 2018 and 2019.
2. Calculate Investment in Scann shown on the consolidated statements at December 31, 2018 and 2019.
3. Calculate consolidated net income for 2018 and 2019.
4. Calculate Noncontrolling interest balance on Panorama's ledger at December 31, 2018 and 2019.
5. Calculate Noncontrolling interest balance on the consolidated statements at December 31, 2018 and 2019.

Bramble Corporation acquired a 37% interest in Vaughn Company on January 1, 2021, for $490,000. At that time, Vaughn had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2021, Vaughn paid cash dividends of $165,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Vaughn's net income for 2021 was $355,000. What is the balance in Bramble 's equity investment account at the end of 2021?

Balance in equity investment account $

Best Company acquired a machine on January 1, 2018, that cost $40,000 and had an estimated residual value of $4,000. Complete the following schedule (for 2018) using the three methods of depreciation:

1. straight-line, B.) units-of-production, C.) declining-balance at 150% acceleration rate.

(Round to the nearest dollar).

                                              Income Statement          Balance Sheet

Method              Useful Life               2018 Expense          2018 Accum. Deprec.

SL                       5 yrs                 $__________             $__________

Units Prod.           8,000 units             $__________             $__________

(2018 Actual 2,000 units)

200% DB                5 yrs                 $__________              $__________

On January 2, 2016 Alan Corporation acquired 35% if the voting stock of Hamlen Company for $4,000,000 in cash.  During 2016 Hamlen reported total income of $600,000.  Hamlen sold $5,000,000 in merchandise to Alan at a markup of 20% on cost; $312,000 remains in Alan's ending inventory.  Compute Alan's equity in net income of Hamlen for 2016 on Alan's books.

Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 2007, for $225,000. At that date, the fair value of the noncontrolling interest was $75,000.

On January 1, 2009, Vision sold 1,500 shares of Meta's $10 par value shares for $60,000 in cash. Meta's balance sheet at the time of the sale contained the following amounts:

Cash $40,000

Accounts Receivable $40,000

Inventory $20,000

Buildings and Equipment (net) $300,000

Total Assets $400,000

Accounts Payable 50,000

Bonds Payable 50,000

Common Stock 100,000

Retained Earnings 200,000

Total Liabilities & Equity $400,000

During the year of 2009 Meta reported net income of $30,000 and paid dividends of $10,000 Vision used the fully adjusted equity method in accounting for its ownership of Meta Company

1)Compute the balance of the investment account reported by Vision on 1/1/09 before the sale.

2)Prepare the entry recorded by Vision to record the sale of the shares assuming excess of the sale price over the carrying value is recorded as an increase in Paid in Capital

3) Prepare the and eliminating entries for 12/31/09

I have seen this question answered numerous time with no explanation. I would like to understand how to get the answer myself. Question 2 has been answered differently on other posts. So I would like clarification if possible.

Parent Company acquired 90% of Son Inc. on January 31, 20X2 in exchange for cash. The book value of Son's individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Son reported the following:

During the year Son Inc. reported $310,000 in net income and declared $15,000 in dividends. Parent Company reported $520,000 in net income and declared $25,000 in dividends. Parent accounts for their investment using the equity method.

Required:

1) What journal entry will Parent make on the date of acquisition to record the Investment in Son Inc.?

2) If Parent were to prepare a consolidated balance sheet on the acquisition date (January 31, 20X2), what is the basic consolidation entry Parent would use in the consolidation worksheet?

3) What is Parent's balance in "Investment in Son Inc." prior to consolidation on December 31, 20X2?

4) What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2?

Question 1

The Parent Company PC acquired 80% of Subsidiary SA for 160. At the date of acquisition, 31 December 2014, the two individual statements of financial position are as follows:

PC

SA

On 31 December 2016, the two statements of financial position are as follows:

PC

SA

Required:

Prepare the consolidated statement of financial position at the date of acquisition and as of 31 December 2016.

Question 2

On September 2011, J shares Ltd paid £40,000 to acquire 60% of the ordinary shared and 25% of the preference shares of K Ltd. On that date, the retained earnings of K Ltd were £4,000 and all of its assets and liabilities were shown at fair values. The statements of financial position of J Ltd and K Ltd as at 30 September 2014 are as follows:

K Ltd has issued no shares since being acquired by J Ltd. Goodwill has suffered an impairment loss of 20% since acquisition. Non-controlling interests are to be measured at the appropriate proportion of the subsidiary’s identifiable net assets.

Required:

Prepare the consolidated statement of financial position as at 30 September 2014.

1A) On January 1, 2014, Garr Company acquired machinery at a cost of $320,000 The machinery was being depreciated using the double declining balance method. It had an estimated useful life of 8 years and no residual value. At the beginning of 2016, Garr changed to the straight-line method of depreciation. Prepare any journal entry required to account for this change.

1B) Gundrum Inc. purchased equipment on January1, 2012 for $850,000. The equipment was expected to have a useful life of 10 years and a salvage value of $30,000. Gundrum uses the straight line method of depreciation. At the beginning of 2017, Gundrum determined that the total estimated life of the equipment was 13 years and that the residual value would be $10,000. Prepare the journal entry necessary to account for this change.

On January ​1, Staley Utilities Company acquired a power plant at a total cost of $23,580,000​, and paid cash. The estimated cost​ (in today's​ market) to dismantle the plant and restore the property at the end of the​ plant's 15​-year life is $4,859,000 Staley's cost of capital is 2. Staley will depreciate the asset over its useful life using the​ straight-line method. The asset has no residual value.

Requirements: