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6. Perry acquired Sanders for $400,000 on 12/31/X0. The book value and fair value of Sanders at the time of acquisition was: Book Value Fair Value Cash $30,000 $30,000 Accounts Receivable 50,000 50,000 Inventory 60,000 70,000 Equipment 80,000 60,000 Building 200,000 250,000 Accounts Payable 100,000 100,000 Common Stock 100,000 Retained Earnings 220,000 If Perry acquired 90% of Sanders, with the excess associated with a patent. The Determination and Distribution schedule is: Investment Price $400,000 Book Value of Net Assets purchased: Common Stock $100,000 Retained Earnings 220,000 $320,000 % Acquired 90% 288,000 $112,000 Excess Inventory $10,000 x 90% $(20,000) x 90% Equipment 118,000) $50,000 x 90% 45,000 Building 36,000 $76,000 Patent anma etatement acounts are: $9,000 8:43 PM Year 20X1 information from related income statement acounts are: Perry Sanders Sales $1,500,000 $500,000 Cost of Goods Sold 450,000 200,000 Operating Expenses 550,000 200,000 Net Income $500,000 $100,000 In addition: Dividends declared were $50,000 by Perry, and $30,000 by Sanders. Inventory was sold during 20X1. Equipment has a 3-year useful life and Building has a 15-year useful life. The Patent has a 10-year useful life. If on 12/31/X1 Perry and Sanders had inventory balances of $120,000 and $65,000 respectively. What is the amount of consolidated cost of goods sold? a. $185,000 b. $641,000 c. $650,000 d. $659,000 8:44 PM 7. Perry acquired Sanders for $400,000 on 12/31/XO. The book value and fair value of Sanders at the time of acquisition was: Book Value Fair Value Cash $30,000 $30,000 Accounts Receivable 50,000 50,000 Inventory 60,000 70,000 Equipment 80,000 60,000 Building 200,000 250,000 Accounts Payable 100,000 100,000 Common Stock 100,000 Retained Earnings 220,000 If Perry acquired 90% of Sanders, with the excess associated with a patent. The Determination and Distribution schedule is: Investment Price $400,000 Book Value of Net Assets purchased: Common Stock $100,000 Retained Earnings 220,000 $320,000 % Acquired 90% 288,000 Excess $112,000 Inventory $10,000 x 90% $9,000 Equipment $(20,000) X 90% (18,000) $50,000 X 90% 45,000 Building 36.000 A $76,000 $7 Patent 8:44 PM Patent Year 20X1 information from related income statement acounts are: Perry Sanders Sales $1,500,000 $500,000 Cost of Goods Sold 450,000 200,000 Operating Expenses 550,000 200,000 Net Income $500,000 $100,000 In addition: Dividends declared were $50,000 by Perry, and $30,000 by Sanders. Inventory was sold during 20X1. Equipment has a 3-year useful life and Building has a 15-year useful life. The Patent has a 10-year useful life. At 12/31/X1 Perry and Sanders had equipment balances of $200,000 and $80,000 respectively. What is the amount of consolidated equipment on that date? a. $260,000 b. $262,000 c. $268,000 d. $280,000 UTO TVI PTUU, UUU on 12/31/Xo. The book value and fair value of Sanders at the time of acquisition was: Book Value Fair Value Cash $30,000 $30,000 Accounts Receivable 50,000/ 50,000 Inventory 60,000 70,000 Equipment 80,000 60,000 Building 200,000 250,000 Accounts Payable 100,000 100.000 Common Stock 100,000 Retained Earnings 220,000 If Perry acquired 90% of Sanders, with the excess associated with a patent. The Determination and Distribution schedule is: Investment Price $400,000 Book Value of Net Assets purchased: Common Stock $100,000 Retained Earnings 220,000 $320,000 % Acquired 90% 288,000 Excess $112,000 100 y 90 Inventory $10,000 x 90% $9,000 Equipment $(20,000) X 90% (18,000) Building $50,000 x 90% 45,000 36.000 $76,000 Patent AVEL V Patent 8:46 PM Year 20X1 information from related income statement acounts are: Perry Sanders Sales $1,500,000 $500,000 Cost of Goods Sold 450,000 200,000 Operating Expenses 550,000 200,000 Net Income $500,000 $100,000 In addition: Dividends declared were $50,000 by Perry, and $30,000 by Sanders. Inventory was sold during 20X1. Equipment has a 3-year useful life and Building has a 15-year useful life. The Patent has a 10-year useful life. What is the amount reported as consolidated dividends declared? a. $50,000 b. $53,000 c. $77,000 d $80.000 9. Perry acquired Sanders for $400,000 on 12/31/X0. The book value and fair value of Sanders at the time of acquisition was: Book Value Fair Value Cash $30,000 $30,000 Accounts Receivable 50,000 50,000 Inventory 60,000 70,000 Equipment 80,000 60,000 Building 200,000 250,000 Accounts Payable 100,000 100,000 Common Stock 100,000 Retained Earnings 220,000 If Perry acquired 90% of Sanders, with the excess associated with a patent. The Determination and Distribution schedule is: Investment Price $400,000 Book Value of Net Assets purchased: Common Stock $100,000 Retained Earnings 220.000 $320,000 % Acquirech 90% $112,000 Excess $9,000 $10,000 x 90% Inventory $(20,000) X 90% (18,000) Equipment $50,000 x 90% 45,000 36,000 Building $76,000 Patent Year 20X1 information from related income statement acounts are: ====== Perry Sanders Sales $1,500,000 $500,000 Cost of Goods Sold 450,000 200,000 Operating Expenses 550,000 200,000 Net Income $500,000 $100,000 In addition: Dividends declared were $50,000 by Perry, and $30,000 by Sanders. Inventory was sold during 20X1. Equipment has a 3-year useful life and Building has a 15-year useful life. The Patent has a 10-year useful life. What is the amount of the Patent that will be reported on the 12/31/1 consolidated balance sheet if Perry uses the cost method to account for its investment in Sanders? a. $0 b. $68,400 c. $76,000 d. $77,600

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