Quiz Chapter 6 - Key.docx - Name Quiz Chapter 6 1 Batman...

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Name__________________________________________________________ Quiz Chapter 6 1- Batman acquires 80% of Joker on January 1 st 20X1 for $400K (the underlying book value). At the time of the acquisition Joker’s Retained Earnings was $200K and Common Stock was $300K. During the year Batman sold $300,000 of inventory to Joker. The inventory originally cost Batman $210,000. At the end of the year, Joker had $50,000 of that inventory on hand. The remainder had been sold to an outside party. Including the sale of the intercompany inventory, Joker had net income of $180K and no dividends were paid during the year. At the date of acquisition Batman accumulated depreciation was $35K and Joker was $15K. Intercompany Sales Resold On-Hand Sales $300,000 $250,000 $50,000 Cost of Sales $210,000 $175,000 $35,000 Gross Profit $90,000 $75,000 $15,000 Gross Margin 40% NCI Share Investment Retained Earnings Common Stock Beg $100,000 $400,000 $200,000 $300,000 Income $36,000 $144,000 $180,000 Ending $136,000 $544,000 $380,000 $300,000 a-
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  • Summer '15
  • SCOTTJ.BECKER
  • Accounting, Generally Accepted Accounting Principles, Joker

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