80.2K

Verified Solution

Link Copied!

On January 1, 2013, Piper Company acquired an 80x interest in Sand Company for $2,302,200. At that time the common stock and retained earnings of S and Company were $1.885,700 and $671,800, respectively. Differences between the fair value and the book value of the identifiable assets of Sand Company were as follows: The book values of all other assets and liabilities of Sand Compary were equal to their fair values on January 1,2013. The equipment had a remaining useful life of eight years. Inventory is accounted for on a FIFO basis. Sand Company's reported net income and declared dividends for 2013 through 2015 are shown here: Prepare the eliminating/adjusting entries needed on the consolidated worksheet for the years ended 2013, 2014, and 2015. Question 3 of 4 Cost of Goods Sold Depreciation Exprise 6325 Equipment 44275 Goodivill 224850 Difference between Implied and Book Value (To allocate and depreciate the difference between implled and book value) 2014 Tmestment in Subsidiary 103860 Retained Earnings: (To establish reciprocity/convert to equity method as of 1/1/2011) Dividend Income Dividends Declared - Subsidiary Compary (To eliminate intercompany dividends) Retained Earmings Common Stock Differerke between lmpked and Book Value Difference between implied and Book Value (To allocate and depreciate the difference between implied and book value) 2015 Investment in Subsidiary \begin{tabular}{|c|} \hline 5180 \\ \hline50 \\ \hline \end{tabular} Retained Earnings (To establish redprocity/convert to equity method as of 1/1/2012) Dividend lincome. Dividends Declared - Subsidiary Compary (To climinate intercompary dividends) Retained Earnings Cornmon Stock Ditference between implied and Book Value Investment in Subsidiary Noncontroiling interest (To eliminate investrment account and create noncontrolling interest account)

Answer & Explanation Solved by verified expert

See Answer