Week 5 - Team B - Bonnie Bowles

Week 5 - Team B - Bonnie Bowles - Week 5 Team B Kimberely...

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Week 5 Team B Kimberely Banas, Bonnie Bowles, Jodie Bucher, Dawn Olenski E6-11 (a) CONSOLIDATED NET INCOME—20X8 (UPSTREAM SALE) Baywatch's separate income Tubberware's net income 40,000 Partial realization of intercompany gain on upstream sale of equipment $30,000 ÷ 12 years remaining at time of sale 2,500 Tubberware's realized net income Consolidated net income, 20X8 SUPPORTING CALCULATIONS: Original cost to Tubberware Accumulated depreciation on December 31, 20X5: Annual depreciation ($300,000 / 15 years) 20,000 Number of years 3 Book value on December 31, 20X5 Gain on sale ($270,000 less book value) (b) CONSOLIDATED NET INCOME—20X8 (DOWNSTREAM SALE) Baywatch's separate income ($100,000 + partial realization of intercompany gain on downstream sale of equipment) Tubberware's net income Consolidated net income, 20X8 There is no change in consolidated net income. (c) Equipment 30,000 Retained earnings, January 1 24,000 Noncontrolling interest 6,000 Accumulated depreciation Eliminate unrealized gain on upstream sale of equipment
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42,500 $142,500 $300,000 60,000 $240,000 $30,000 $102,500 40,000 $142,500 60,000
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Week 5 - Team B - Bonnie Bowles - Week 5 Team B Kimberely...

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