Chapter 10 Homework

# Chapter 10 Homework - ACCT 4455 Chp 10 Chapter 10 HOMEWORK...

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ACCT 4455 Chp 10 Chapter 10: HOMEWORK Multiple Choice Questions: 4. b 700 + .4(240) + .4(.2 x 30) - .4(100) = 758.4 5. a 180 + .4(95 – 35) = 204 9. b 10. c 11. c 14. b 240,000 + .2(110,000 – 7,500) = 260,500 15. c 495,000 + .2(95,000 – 10,000) = 512,000 Problem 2 Intercompany eliminations Sales and purchases (70,000 × 30%) 21,000 Receivables and payables (12,000 × 30%) 3,600 Inventory profits Before Tax After tax 40% tax Closing inventory 10,000 Considered realized 70% Unrealized – Able selling 30% 3,000 1,200 1,800 Able Ltd. Consolidated Income Statement for the Year Ended December 31, Year 6 Revenues (900,000 + [30% × 100,000] – 21,000) 909,000 Cost of sales and expenses (812,000 + [30% × 70,000] – 21,000 + 3,000 – 1,200) 813,800 Net income 95,200 Able Ltd. Consolidated Retained Earnings Statement for the Year Ended December 31, Year 6 Balance Jan. 1 (110,000 – 97,000) 13,000 Net income 95,200 Balance Dec. 31 (110,000 – 1,800) 108,200 1

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ACCT 4455 Chp 10 Able Ltd. Consolidated Balance Sheet as at December 31, Year 6 Current assets (247,000 + [30% × 40,000] – 3,600 – 3,000) 252,400 Other assets (530,000 + [30% × 70,000]) 551,000 Deferred charge - income taxes 1,200 804,600 Current liabilities (94,000 + [30% × 20,000] – 3,600) 96,400 Long-term debt 400,000 Capital stock 200,000 Retained earnings (110,000 – 1,800) 108,200 804,600 Problem 9 Revenues Profit Assets A 12,000 2,100 24,000 B 9,600
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## This note was uploaded on 04/28/2010 for the course ENTR entr 3130 taught by Professor Duane during the Spring '10 term at American College of Computer & Information Sciences.

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Chapter 10 Homework - ACCT 4455 Chp 10 Chapter 10 HOMEWORK...

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