Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. phelps co. uses the sophisticated equity method to

Phelps Co. uses the sophisticated equity method to account for the 80% investment in its...

70.2K

Verified Solution

Question

Accounting

Phelps Co. uses the sophisticated equity method to account for the 80% investment in its subsidiary Shore Corp. At the time of the acquisition, the fair values of the net asset required approximated their book values. Based upon the following information,

Phelps internally generated net income: $250000

Shore internally generated net income: $50000

Intercompany profits in beginning inventory purchased from shore: $10000

Intercompany profit in ending inventory purchased from shore: $15000

1. what is consolidated net income?

A. $300,000

B. $295,000

C. $286,000

D. $305,000

2. what amount does Phelps Co. record as subsidiary income? A. $50,000 B. $44,000 C. $40,000 D. $36,000

3.what amount of income is attributable to the noncontrolling interest? A. $10,000 B. $9,000 C. $11,000 D. $7,000

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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

How do you solve this using R? The file "flow-occ.csv" contains data collected by loop detectors at...

Basic Math
Q

What is the difference between Q and q? Under what assumptions is investment solely a function...

Physics
Q

Which structure is NOT a supramolecular complex Select one a ribosome b mitochondrion Oc chromosome...

Biology
Q

A charged particle having q and mass m accelerated by a potential difference Vo enters...

Physics
Q

Consider a charged parallel-plate capacitor. How can its capacitance be halved?Check all that apply.Double the...

Physics
Q

Problem 9.36- Enhanced - with Feedback A 750-kg car stopped at an intersection is rear-...

Physics
Q

A 0.43-kilogram soccer ball sits on the grass. The coefficient of static friction betweenthe soccer...

Physics
Q

The rate of markup on a bicycle selling for 845 is 32 Calculate the rate...

Calculus
Q

7 Which equation has the same solution as x 6x 12 0 1 x 3...

Algebra
Q

Leslie participates in IBOs nonqualified deferred compensation plan. For 2018, she is deferring...

Accounting
Q

Mohammed is the owner of a service company that provides consulting services and charges the...

Accounting
Q

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The...

Accounting