Following are selected account balances from Penske Company and Stanza Corporation as of December 31, 2018:

Note: Parentheses indicate a credit balance.

On January 1, 2018, Penske acquired all of Stanza’s outstanding stock for $815,000 fair value in cash and common stock. Penske also paid $10,000 in stock issuance costs. At the date of acquisition copyrights (with a six-year remaining life) have a $498,000 book value but a fair value of $630,000.

1-As of December 31, 2018, what is the consolidated copyrights balance?

2-For the year ending December 31, 2018, what is consolidated net income?

3-As of December 31, 2018, what is the consolidated retained earnings balance?

4-As of December 31, 2018, what is the consolidated balance to be reported for goodwill?

Please show your calculations, thanks. I need all parts to be answered, thanks,

Fox Ltd has purchased a truck on 1 July 2018. The list price of the truck was $200,000 but Fox Ltd was invoiced and paid only $180,000. Fox Ltd did have to pay for an inspection costing $30,000 on 1 July 2018 before the truck could be used for the first time. In addition, the company purchased an annual insurance policy for the truck costing $24,000 (recorded using the asset approach). The truck will be depreciated using the reducing balance method at a rate of 10% per annum.

On 1 September 2018, the truck broke down and Fox Ltd spent $40,000 to get it back to working condition.

On 1 July 2019, Fox Ltd decided to replace the engine in the truck with a newer model costing $61,000 that uses considerably less petrol and makes the truck more powerful so that it could also haul a trailer. The 10% reducing balance rate of depreciation is still applied.

Required:

Prepare the general journal entries for the years ended 30 June 2019 and 30 June 2020 related to the truck, taking into account the information provided above. Narrations are not required. Justify your entries.

Tamarisk Gas Inc., an oil and gas company had the following information on its financial statements for the fiscal years ended December 31. All figures are in millions of dollars.

A)

Calculate Tamarisk’s (Round answers to 1 decimal place, e.g. 52.7 or 52.7%.)

B)

Determine from the results obtained in part (a) if Tamarisk’s

The information necessary for preparing the 2018 year-end adjusting entries for Vito’s Pizza Parlor appears below. Vito’s fiscal year-end is December 31.

1. On July 1, 2018, purchased $13,500 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1 and July 1. The annual interest rate is 12%.
2. Vito’s depreciable equipment has a cost of $40,200, a six-year life, and no salvage value. The equipment was purchased in 2016. The straight-line depreciation method is used.
3. On November 1, 2018, the bar area was leased to Jack Donaldson for one year. Vito’s received $8,100 representing the first six months’ rent and credited deferred rent revenue.
4. On April 1, 2018, the company paid $3,240 for a two-year fire and liability insurance policy and debited insurance expense.
5. On October 1, 2018, the company borrowed $27,000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2019.
6. At year-end, there is a $2,150 debit balance in the supplies (asset) account. Only $770 of supplies remain on hand.

Required:

1. Prepare the necessary adjusting journal entries at December 31, 2018.
2. Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.)

Irwin, Inc., constructed a machine at a total cost of $57 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the straight-line method.

Ignoring income taxes, prepare the journal entry relating to the machine for 2018. Irwin, Inc., constructed a machine at a total cost of $57 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the beginning of 2018, Irwin decided to change to the straight-line method.

Ignoring income taxes, prepare the journal entry relating to the machine for 2018.

Irwin, Inc., constructed a machine at a total cost of $41 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the straight-line method. The residual value is expected to be $3 million. At the beginning of 2018, Irwin decided to change to the sum-of-the-years’-digits method.

Ignoring income taxes, prepare the journal entry relating to the machine for 2018.

During 2018 and 2019, Kale Co. completed the following transactions relating to its bond issue. The company’s fiscal year ends on December 31.

2018

2019

Required

1. When the bonds were issued, was the market rate of interest more or less than the stated rate of interest? If the bonds had sold at face value, what amount of cash would Kale Co. have received?
2. Prepare the liabilities section of the balance sheet at December 31, 2018 and 2019.
3. Determine the amount of interest expense Kale would report on the income statements for 2018 and 2019.
4. Determine the amount of interest Kale would pay to the bondholders in 2018 and 2019.

The Pyramid Company has used the LIFO method of accounting for inventory during its first two years of operation, 2016 and 2017. At the beginning of 2018, Pyramid decided to change to the average cost method for both tax and financial reporting purposes. The following table presents information concerning the change for 2016–2018. The income tax rate for all years is 40%. Income before Income Tax Average Cost Method LIFO Method Difference Income Tax Effect Difference after Tax 2016 $ 92,400 $ 61,600 $ 30,800 $ 12,320 $ 18,480 2017 47,000 37,600 9,400 3,760 5,640 Total $ 139,400 $ 99,200 $ 40,200 $ 16,080 $ 24,120 2018 $ 51,800 $ 46,400 $ 5,400 $ 2,160 $ 3,240 Pyramid issued 57,000 $1 par, common shares for $250,000 when the business began, and there have been no changes in paid-in capital since then. Dividends were not paid the first year, but $11,000 cash dividends were paid in both 2017 and 2018. Required: 1. Prepare the journal entry to record the change in accounting principle. 2. Prepare the 2018–2017 comparative income statements beginning with income before income taxes. 3. Prepare the 2018–2017 comparative statements of shareholders’ equity. (Hint: The 2016 statements reported retained earnings of $36,960. This is $61,600 – [$61,600 × 40%]).

Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2017, for $595,000 in cash. Annual excess amortization of $16,000 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $402,000, and Rambis reported a $229,000 balance. Herbert reported internal net income of $51,000 in 2017 and $64,500 in 2018 and declared $10,000 in dividends each year. Rambis reported net income of $24,500 in 2017 and $38,000 in 2018 and declared $5,000 in dividends each year.

a. Assume that Herbert’s internal net income figures above do not include any income from the subsidiary.

• If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2018?
• What would be the amount of consolidated retained earnings on December 31, 2018, if the parent had applied either the initial value or partial equity method for internal accounting purposes?

b. Under each of the following situations, what is the Investment in Rambis account balance on Herbert’s books on January 1, 2018?

• The parent uses the equity method.
• The parent uses the partial equity method.
• The parent uses the initial value method.

c. Under each of the following situations, what is Entry *C on a 2018 consolidation worksheet?

• The parent uses the equity method.
• The parent uses the partial equity method.
• The parent uses the initial value method.

Item 11

Item 11

Nu Company reported the following pretax data for its first year of operations.

What is Nu's gross profit ratio if it elects LIFO?-----

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Item 12

Item 12

Udon Inc. adopted dollar-value LIFO (DVL) as of January 1, 2018, when it had an inventory of $710,000. Its inventory as of December 31, 2018, was $802,500 at year-end costs and the cost index was 1.07. What was DVL inventory on December 31, 2018?

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Bond Company adopted the dollar-value LIFO inventory method on January 1, 2018. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach. The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:

Under the dollar-value LIFO method, the inventory at December 31, 2019, should be