In 20X6, Vines Inc. (Vines) purchased 40% of the common shares of Bottles Inc. (Bottles). At the time, there were no fair value differentials. In 20X7, Vines sold inventory to Bottles for $80,000. $25,000 of this remained at year end. This inventory was sold by Bottles in 20X8. Also during 20X8, Vines sold additional inventory to Bottles for $60,000 of which $30,000 remains in inventory. Vines earns a gross profit of 30% on sales of its inventory. Both companies pay income taxes at 25%. During 20X8, Bottles earned net income of $200,000. What is the amount of equity income reported by Vines in 20X8?

Q: Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in…

A: The answer is stated below:

Q: Direction: Analyze the case and give what is asked. On January 2, 20X1, Entity X purchases 75% of…

A: In consolidated financial statements, the unrealized gains on the transactions between the group…

Q: Shark Company purchased inventory from Dolphin Corporation for P120,000 on October 4, 2020, and…

A: Consolidated Sales is the total sales of the group less inter company sales Consolidated Sales =…

Q: Baxter, Inc., owns 90 percent of Wisconsin, Inc., and 20 percent of Cleveland Company. Wisconsin, in…

A:

Q: Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced…

A: Pepper corporation owns Salt company voting shares = 75% During 20X8, Pepper produced chairs = 50000…

Q: On January 1, 20X1, Rivera Company (RC) and Caventa Company (CC) each acquired 40% of the ordinary…

A: 1. The amount of income RC should recognize from, TC P60000

Q: On January 1 of the current year, Yellow Company purchased 40% of the outstanding ordinary shares of…

A: Reported income: The investor's portion of the joint venture's earnings and losses is included in…

Q: At the beginning of the current year, Big Company purchased 25% of the outstanding ordinary shares…

A: Investments in company for less than 50% is accounted using equity method. Under this method…

Q: Rainy Afternoon Co. owns 80% interest in Sunny Morning Co. During 20x1, Rainy sold inventories…

A: A consolidated financial statement represents the combined assets, liabilities, and stockholders'…

Q: What amount of sales will be reported in the 20x2 consolidated income statement?

A: Consolidated revenue is the amount of sale of goods to the customers.

Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017,…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS   Cost of Goods Sold is the value of costs that are…

Q: Palm Company owns 100% of Soso Company. During year X1, Soso sold merchandise costing $50,000 to…

A: Soso sold merchandise cost =$ 50000 profit realised on it               =$ 30000 But, 40% stock…

Q: RAM, Inc., acquired a 60 percent interest in LMU Company several years ago. During 2017, LMU sold…

A: Cost of Goods Sold - It the value of costs which are incurred in the transacting sales of goods or…

Q: ansa Co. acquired 60% interest in Arya on January 1, 2025 for $46,800 when Arya's net assets had a…

A: Consolidated Financial statements :         When a company invests in another company for more than…

Q: P Inc. owns a 60% interest in S Corp.  During 2020 S sold inventory costing $160,000 to P for…

A:

Q: At the beginning of current year, Sage Company bought 40% of Eve Company’s outstanding ordinary…

A:

Q: Bisharp Corporation owns 80% of Rufflet, Inc. common stock. During 20A, Bisharp sold to Rufflet…

A: Income Statement It is a statement that shows all the expenses and incomes of reoccurring nature…

Q: On January 1 of the current year, Yellow Company purchased 40% of the outstanding ordinary shares of…

A: The net investment income of the purchase of shares in any company is the share of the purchasing…

Q: Goddy Company owns 80% of the common stock of Morris, Inc. In the current year, Goddy reports sales…

A: Consolidated cost of goods which are sold comes after adding the cost of goods sold of subsidiary…

Q: Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced…

A: When one company acquired shares of another company then one company is parent company and other…

Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017,…

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: this date, the c

A: Introduction Investments in company for less than 50% is accounted using equity method. Under this…

Q: Premier Company owns 90 percent of the voting shares of Stanton, Inc. Premier reports sales of…

A:

Q: Paggle Corporation owns 80% of Spillway Inc.'s common stock that was purchased at its underlying…

A: The question is based on the concept of Consolidated Financial Statements.

Q: On January 1, 2010, Peter Company purchased 80% of the common stock of Pan Company for P316,000. On…

A: You have posted multiple questions. so only the first three interlink parts of the first questions…

Q: Prepare the necessary entries to be made by both companies for 20X1 and 20X2. • Allocate the…

A:

Q: Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on January 2, 20x3 for P400,000. The…

A: Given the following information: Sage, Inc. bought 40% of Adams Corp.'s outstanding common stock on…

Q: Carlos Bakery owns 60 percent of the stocks of Zeus Products acquired several years ago at book…

A: Consolidated net income is the total income earned by the whole group of companies. Any unrealized…

Q: Pepper Corporation owns 75 percent of Salt Company's voting shares. During 20X8, Pepper produced…

A: Cost of goods sold exhibits direct cost incurred by company for producing goods and services.

Q: BB Inc., acquired a 60 percent interest in HH Company several years ago. During 20x7, HH sold…

A: The cost of goods sold as reported on the consolidated financial statements of the Borrower and its…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…

A: (A). P60,000 is the correct option.

Q: Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020,…

A: Unrealized Profit Upto 31/12/2020   Profit from Intra Activity = (110,000 -90,200) = 19,800 Closing…

Q: Hide Corporation is a wholly owned subsidiary of Seek Company. During 2015, Hide sold all of its…

A: Given: Sold amount of the company to Seek = $ 400,000 The sold amount at year-end by Seek=$ 416,000…

Q: At the beginning of the current year, Occidental Company purchased 40% of the outstanding ordinary…

A: Correct answer is option (a) 1,350,000.

Q: Acker Company bought 100% of Howell Company on 1/1/X1 for $1,440,000 and began applying the equity…

A: Expansion and growth are motives of business. Purchasing or acquiring other firms is one of the ways…

Q: On January 1, 2009, Pert Company purchased 85% of the outstanding common stock of Sales Company for…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: AA Corporation holds 80 percent of the stock of Movie Production Inc. During 20x9, AA purchased an…

A: Net Income is the revenue amount reduced by cost of goods sold. The calculation is given below:

Q: Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms…

A: Determine the amount of intra-entity profit that remains in S company inventory at year-end.

Q: What amount of net income will be reported in the 20x9 consolidated income statement?

A: Consolidated net income is the income which has been earned by the parent company and the subsidiary…

Q: Lorn Corporation purchased inventory from Dresser Corporation for P120,000 on September 20, 20x2,…

A: Consolidated revenue is the amount of sale of goods to the customers.

Q: Brandy Corporation owns 60 percent of Downer's voting shares. During 20X3, Brandy produced 50,000…

A: Working Notes: 1. Sales = Number of desks sold to Downer's * selling Price = 20,000 desks * $94 =…

Q: What amount of loss should Windy Co. recognize on Dec. 31, 20x1 if the shares were classified as:

A: If classified as FVPL:  Loss to be recognised is Investment cost  Less: Fair value of shares  If…

Q: What amount of cost of goods sold will be reported in the 20x2 consolidated income statement?

A: Cost of goods sold is the amount of direct expenses and overhead applied of the goods and does not…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.