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.

On January 2, 20X8, Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Perth's balance sheet contained the following information(in Foreign Currency Units, FCU): Cash 40,000 Receivables 150,000 Inventories 500,000 Equipment 1,500,000 Payables 200,000 Capital stock 600,000 Retained earnings 1,390,000 Perth's income statement for 20X8 is as follows(in Foreign Currency Units, FCU): Sales revenue 1,010,000 Cost of goods sold 590,000 Operating expenses 120,000 Depreciation expense 200,000 Income tax expense 40,000 The balance sheet of Perth at December 31, 20X8, is as follows(in Foreign Currency Units, FCU): Cash 180,000 Receivables 210,000 Inventories 520,000 Equipment 1,300,000 Payables 180,000 Capital stock 600,000 Retained earnings 1,430,000 Perth declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow: January 2: 1 FCU = $1.50 October 1: 1 FCU = $1.60 December 31: 1 FCU = $1.70 Weighted average: 1 FCU = $1.55 Assume Perth's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 20X8. Refer to the above information. Assuming Perth's local currency is the functional currency, what is the amount of the adjustment that results from converting Perth's trial balance into U.S. dollars at December 31, 20X8?

On January 2, 20X8, Johnson Company acquired a 100% interest in the capital stock of Perth Company for $3,100,000. Any excess cost over book value is attributable to a patent with a 10-year remaining life. At the date of acquisition, Perth's balance sheet contained the following information (in Foreign Currency Units, FCU): Cash 40,000 Receivables 150,000 Inventories 500,000 Equipment 1,500,000 Payables 200,000 Capital stock 600,000 Retained earnings 1,390,000 Perth's income statement for 20X8 is as follows(in Foreign Currency Units, FCU): Sales revenue 1,010,000 Cost of goods sold 590,000 Operating expenses 120,000 Depreciation expense 200,000 Income tax expense 40,000 The balance sheet of Perth at December 31, 20X8, is as follows(in Foreign Currency Units, FCU): Cash 180,000 Receivables 210,000 Inventories 520,000 Equipment 1,300,000 Payables 180,000 Capital stock 600,000 Retained earnings 1,430,000 Perth declared and paid a dividend of 20,000 FCU on October 1, 20X8. Spot rates at various dates for 20X8 follow: January 2: 1 FCU = $1.50 October 1: 1 FCU = $1.60 December 31: 1 FCU = $1.70 Weighted average: 1 FCU = $1.55 Assume Perth's revenues, purchases, operating expenses, depreciation expense, and income taxes were incurred evenly throughout 20X8. Refer to the above information. Assuming the U.S. dollar is the functional currency, what is Johnson's gain (loss) for 20X8? (Assume the ending inventory was acquired on December 31, 20X8.)

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.

On January 1, 20X8, Pace Company acquired all of the outstanding stock of Spin PLC, a British Company, for $350,000. Spin's net assets on the date of acquisition were 250,000 pounds (£). On January 1, 20X8, the book and fair values of the Spin's identifiable assets and liabilities approximated their fair values except for property, plant, and equipment and trademarks. The fair value of Spin's property, plant, and equipment exceeded its book value by $25,000. The remaining useful life of Spin's equipment at January 1, 20X8, was 10 years. The remainder of the differential was attributable to a trademark having an estimated useful life of 5 years. Spin's trial balance on December 31, 20X8, in pounds, follows:

Additional Information

1. Spin uses the FIFO method for its inventory. The beginning inventory was acquired on December 31, 20X7, and ending inventory was acquired on December 26, 20X8. Purchases of £300,000 were made evenly throughout 20X8.

2. Spin acquired all of its property, plant, and equipment on March 1, 20X6, and uses straight-line depreciation.

3. Spin's sales were made evenly throughout 20X8, and its operating expenses were incurred evenly throughout 20X8.

4. The dividends were declared and paid on November 1, 20X8.

5. Pace's income from its own operations was $150,000 for 20X8, and its total stockholders' equity on January 1, 20X8, was $1,000,000. Pace declared $50,000 of dividends during 20X8.

6. Exchange rates were as follows:

Required:

1) Prepare a schedule translating the trial balance from British pounds into U.S. dollars. Assume the pound is the functional currency.

2) Assume that Pace uses the fully adjusted equity method. Record all journal entries that relate to its investment in the British subsidiary during 20X8. Provide the necessary documentation and support for the amounts in the journal entries, including a schedule of the translation adjustment related to the differential.

3) Prepare a schedule that determines Pace's consolidated comprehensive income for 20X8.