Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1,2019, phoenix co. acquired 100 percen

On January 1,2019, Phoenix Co. acquired 100 percent of the outstanding voting shares...

80.2K

Verified Solution

Question

Accounting

On January 1,2019, Phoenix Co. acquired 100 percent of the outstanding voting shares of Sedona Inc. for $668,000 cash. At January 1,2019, Sedonas net assets had a total carrying amount of $467,600. Equipment (eight-year remaining life) was undervalued on Sedonas financial records by $90,400. Any remaining excess fair over book value was attributed to a customer list developed by Sedona (four-year remaining life), but not recorded on its books. Phoenix applies the equity method to account for its investment in Sedona. Each year since the acquisition, Sedona has declared a $17,500 dividend. Sedona recorded net income of $93,500 in 2019 and $110,600 in 2020.
Selected account balances from the two companies individual records were as follows:
Phoenix Sedona
2021 Revenues $ 578,000 $ 362,000
2021 Expenses 375,000270,000
2021 Income from Sedona 53,200
Retained earnings 12/31/21317,200215,600
On its December 31,2021, consolidated balance sheet, what amount should Phoenix report for Sedonas customer list?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Dr. Levesque removed de-shelled eggs from an isotonic solution and placed them in each of the...

Biology
Q

Could you give me a basic introduction about “Validation of Reynolds analogy concept “ ?

Mechanical Engineering
Q

A company has fixed costs of $900 and a per-unit contribution margin of $3. Which of...

Accounting
Q

How did consumerism affect societies Consumer culture changed people s lifestyles O People began relying...

Biology
Q

An ideal refrigerator has a freezer at temperature 12 C The coefficient of performance temperature...

Physics
Q

36 Water is flowing through a horizontal tube having cross sectional areas of its two...

Physics
Q

The lengths of the sides of a right triangle are x x 2 and x...

Geometry
Q

Identify the sample space of the probability experiment and determine the number of outcomes in...

Basic Math
Q

Use the given graph of f x x to find a number such that if...

Calculus
Q

Job Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan...

Accounting
Q

Crackle Cellular is approached by Tingle, a new customer to fulfill a large one-time-only special...

Accounting
Q

Does the concept of relevant range apply to fixed costs? Explain your answer. IN YOUR...

Accounting