Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. proud corporation acquired 80 percent of spirited

Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at...

50.1K

Verified Solution

Question

Accounting

imageimageimageimageimage

Proud Corporation acquired 80 percent of Spirited Company's voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 percent of the book value of Spirited at that date Assume that the accumulated depreciation on depreciable assets was $56,000 on the acquisition date. Proud uses the equity method in accounting for its ownership of Spirited. On December 31, 20X4, the trial balances of the two companies are as follows Proud Corporation Debit Spirited Compan Debit Credit Credit Item Current Assets Depreciable Assets Investment in Spirited Company Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Current Liabilities Long-Term Debt Common Stock Retained Earnings Sales Income from Spirited Company $ 248,000 500,000 139,360 24,000 143,000 60,000 $166,000 311,000 14,000 84,000 23,800 $ 199,000 60,000 131,560 182,000 266,000 239,000 36,800 $1,114,360 $84,000 40,000 178,800 91,000 61,000 144,000 $1,114,360 $598,800 $598,800

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

A 15-pound weight that is attached to a spring exhibits simple harmonic motion. a) Determine the equation...

Advance Math
Q

How does the presence of vestigial structures support evolution? A. It shows that all organisms...

Biology
Q

A company's profit in dollars has a function of the number of widgets sold, w,...

Basic Math
Q

Assignment Score Question 10 of 11 0 Rabies is a viral disease of man system...

Statistics
Q

Suppose you just received a shipment of eight televisions Four of the televisions are defective...

Statistics
Q

B Felicia purchased an investment property for 102 450 Her annual expenses for mortgage interest...

Algebra
Q

Ewing Company makes two products, M and N. Product information follows. Required Identify the product...

Accounting
Q

John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests...

Accounting
Q

18 Pasternik Company produces and sells two products, Alpha and Zeta. The following information is...

Accounting
Q

Which of the following would likely not be considered part of the value chain in...

Accounting
Q

QUESTION 6 Five years from now, you want to spend $75,000 for a fancy car....

Finance
Q

A loan is amortized over 6 years, with monthly payments at a nominal rate of...

Finance