Week 5 Learning Team A Assignment upload

Week 5 Learning Team A Assignment upload - Chapter 6 E6-11...

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Chapter 6 E6-11 Upstream Sale of Equipment in Prior Period Required: Operating Income $100,000 Baywatchs share of Tubberware's realized income 40,000+2,500x80% 34,000 $134,000 Baywatch's Separate operating income realized $102,500 ($100,000 + 2,500) Baywatch's share of Tubberware's income 32,000 ($40,000 x 80%) Consolidated Net Income $134,500 The amount would change by 500 greater Retained Earnings, Jan 1 $20,000 (25,000x80%) Noncontrolling Interest 5,000 (25,000x20%) Equipment 30,000 (300,000-270,000) Depreciation Expense 2,500 ((20,000-22,500) Accumulated Depreciation 52,500 (20,000x6)-(22,500x3yrs) Baywatch Industries has owned 80 percent of Tubberware Coporation for many years. On Januarary 1, 20X6, Paywatch paid Tubberware $270,000 to acquire equipment that Tubberware had purchased on January 1 20X3, for $300,000. The Eq is expected to have no scrap value and is depreciated over a 15 year useful life. Baywaytch reported operating earnings of $100,000 for 20X8 and paid dividends of $40,000. Tubberware reported net income of $40,000 and paid dividends of $20,000 in 20X8.
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This note was uploaded on 01/14/2012 for the course ACCOUNTING ACC 455 taught by Professor Unknown during the Spring '11 term at University of Phoenix.

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Week 5 Learning Team A Assignment upload - Chapter 6 E6-11...

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