P7-28 - P7-28 Consolidation Workpaper1/1/05291,200 - .70...

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Unformatted text preview: P7-28 Consolidation Workpaper1/1/05291,200 - .70 (380,000) = 25,20070%Land14,0009,800Goodwill15,40025,200Inventory sales:BIP = 30,00062,00037,000C --------------W ------------EIP= 62,000 - 37,000 = 25,000 54,00090,000BIP = 15,000------- C ------------W EIP= 90,000-54,000 = 36,000 x 20/90 = 8,000Equipment sale C WLife1/1/01Cost 120,000158,000A/D 40,000Book Val 80,000108,0001/1/06 Sale price 95,000109,500Gain 15,0001,5001/1/09 AD should be: 40,000 + 3(8000) = 64,000 but is 3(9500)=28,500 difference 35,500Equity method entries:Investment in S14,000 Income from S14,000Net income (20,000 x 70%)Cash3,500 Investment in S3,500Dividends (5,000 x 70%) a.Eliminating entries:E(1)Income from Subsidiary14,000Dividends Declared3,500 Investment in West Company Stock10,500 Eliminate income from subsidiary.E(2)Income to Noncontrolling Interest7,950Dividends Declared1,500 Noncontrolling Interest6,450 Assign income to noncontrolling interest:$7,950 = ($20,000 + $30,000 - $25,000...
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This note was uploaded on 04/18/2008 for the course ACCT cost taught by Professor Staff during the Spring '08 term at Oklahoma State.

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P7-28 - P7-28 Consolidation Workpaper1/1/05291,200 - .70...

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