Exam 5: Consolidated Financial Statements Intra-Entity Asset Transactions

For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2019 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 intra-entity transfer of merchandise?

In the consolidation worksheet for 2018, which of the following accounts would be debited to eliminate unrecognized intra-entity gross profit with regard to the 2017 intra-entity transfers?

For consolidation purposes, what amount would be debited to January 1 retained earnings for the 2017 consolidation worksheet entry with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2017 intra-entity transfer of merchandise?

What is the total of consolidated cost of goods sold?

Compute consolidated cost of goods sold.

Included in the amounts for Skillet's sales were intra-entity gross profits related to Skillet's intra-entity transfer of merchandise to Pot for $140,000.There were no intra-entity transfers from Pot to Skillet.Intra-entity transfers had the same markup as sales to outsiders.Pot still had 40% of the intra-entity gross profit remaining in ending inventory at the end of 2018.What are consolidated sales and cost of goods sold for 2018?

X-Beams Inc.owned 70% of the voting common stock of Kent Corp.During 2018, Kent made several sales of inventory to X-Beams.The total selling price was $180,000 and the cost was $100,000.At the end of the year, 20% of the goods were still in X-Beams' inventory.Kent's reported net income was $300,000.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what was the net income attributable to the noncontrolling interest in Kent?

What amount of gain should be reported by Smeder Company relating to the equipment for 2017 prior to making consolidating entries?

Compute the equity in earnings of Gargiulo reported on Posito's books for 2017.

Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, compute Wilson's share of income from Simon for consolidation for 2018.

Compute consolidated sales.

In the consolidation worksheet for 2017, which of the following accounts would be credited to eliminate unrecognized intra-entity gross profit with regard to the 2017 intra-entity transfers?

Prepare a schedule of consolidated net income and the share to controlling and noncontrolling interests for 2018, assuming that Musial owned only 90% of Matin and the equipment transfer had been downstream.

Dithers Inc.acquired all of the common stock of Bumstead Corp.on January 1, 2018.During 2018, Bumstead sold land to Dithers at a gain.No consolidation entry for the sale of the land was made at the end of 2018.What errors will this omission cause in the consolidated financial statements?

Dalton Corp.owned 70% of the outstanding common stock of Shrugs Inc.On January 1, 2016, Dalton acquired a building with a ten-year life for $420,000.No salvage value was anticipated and the building was to be depreciated on the straight-line basis.On January 1, 2018, Dalton sold this building to Shrugs for $392,000.At that time, the building had a remaining life of eight years but still no expected salvage value.For consolidation purposes, what is the Excess Depreciation (ED entry) for this building for 2018?

For consolidation purposes, what amount would be debited to cost of goods sold for the 2018 consolidation worksheet with regard to the unrecognized intra-entity gross profit remaining in ending inventory with respect to the 2018 transfer of merchandise?

An intra-entity transfer of a depreciable asset took place whereby the transfer price exceeded the book value of the asset.Which statement is true with respect to the year following the year in which the transfer occurred?

For consolidation purposes, what amount would be debited to cost of goods sold for the 2017 consolidation worksheet with regard to unrecognized intra-entity gross profit remaining in ending inventory with respect to the transfer of merchandise?

Bauerly Co.owned 70% of the voting common stock of Devin Co.During 2017, Devin made frequent sales of inventory to Bauerly.There was deferred intra-entity gross profit of $40,000 in the beginning inventory and $25,000 of intra-entity gross profit at the end of the year.Devin reported net income of $137,000 for 2017.Bauerly decided to use the equity method to account for the investment.Assuming there are no excess amortizations associated with the consolidation, and no other intra-entity asset transfers, what is the net income attributable to the noncontrolling interest for 2017?

Assuming there are no excess amortizations or other intra-entity transactions, Compute the net income attributable to the noncontrolling interest of Devin for 2017.