C12-Chp-08-3P-Consolidated-Returns-Computations

C12-Chp-08-3P-Consolidated-Returns-Computations -...

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Tab:Problem-1 File: 89fd5155d211f719dba29b224dea2267747c7358.xls Parent Local Corp. Cash $100,000 $50,000 Depreciable property 400,000 200,000 Less Accumulated Depreciation (200,000) (150,000) Land 50,000 Investment in Mkt Sec. (10% owned) 100,000 Investment in Subsidiary (100% owned) 200,000 Total Assets $600,000 $150,000 Accounts payable $40,000 $30,000 Common Stock 200,000 80,000 Retained Earnings 360,000 40,000 Total Debt and Equity $600,000 $150,000 Retained Earnings Statement Beginning Retained Earnings $300,000 $20,000 Net Income $60,000 $25,000 Less: Dividends Paid $(5,000) Ending Retained Earnings $360,000 $40,000 Sales $300,000 $200,000 Cost of Sales (158,000) (100,000) Operating Expenses (100,000) (87,000) Dividend Income 8,000 Gain on sale of land to Local Corp. 20,000 Capital loss on sale of Mkt. Securities (10,000) Capital gain on sale of Mkt. Securities 12,000 Net Income before taxes 60,000 25,000 Computations for Consolidated Return Parent Local Corp. Adjustments Consolidated
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This note was uploaded on 03/09/2012 for the course ACCT 6120 taught by Professor Godfrey,h during the Spring '08 term at UNC Charlotte.

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