Ask Experts Questions for FREE Help !
Ask
    Mathandler1's Avatar
    Mathandler1 Posts: 87, Reputation: 2
    Junior Member
    		  
    #1

    Jul 27, 2007, 10:35 AM
    Consolidated Net Income Net Adjustment
    I sure could use some help here.
    Dunn Corporation owns 100% of Grey Corporation’s common stock. On January 2, 2001, Dunn sold to Grey, for $40,000, machinery with a carrying amount of $30,000. Grey is depreciating the acquired machinery over a five-year life by the straight-line method. The net adjustments to compute 2001 and 2002 consolidated net income would be an increase (decrease) of

    2001 2002
    a ($8,000) $2,000
    b ($8,000 $0
    c ($10,000) $2,000
    d ($10,000) $0
    e $8,000 $2,000

    The answer I turned in was (c) because $30 - $40K = ($10K) and $10K/5 = $2K. Is there someone out there that can confirm that I am right or not in giving this as my answer. And if not what is the correct answer. Thanks!
    Mathandler1's Avatar
    Mathandler1 Posts: 87, Reputation: 2
    Junior Member
    		  
    #2

    Jul 27, 2007, 10:35 AM
    The answer I turned in was (c) because $30 - $40K = ($10K) and $10K/5 = $2K. Is there someone out there that can confirm that I am right or not in giving this as my answer. And if not what is the correct answer. Thanks!
    Mathandler1's Avatar
    Mathandler1 Posts: 87, Reputation: 2
    Junior Member
    		  
    #3

    Jul 28, 2007, 10:20 AM
    Wow! I cannot believe my eyes that no one is out there that does not have his/her own thoughts regarding this question. I figure that there would be more than zero out there that would be respond with confirmation of either that I was correct or I was totally off the track with my answer. I really am interested in knowing if someone else has come up with the same asnswer as I did or with a different one. Thanks!
    sreeves5268's Avatar
    sreeves5268 Posts: 1, Reputation: 1
    New Member
    		  
    #4

    Apr 2, 2009, 06:56 AM
    Well, all I know is I have the same question... and letter e is not one of the options I am given for an answer, so it def isn't E!!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Net sales, cost of goods, net profit [ 2 Answers ]

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases………………... E250,000 Freight In……………… E8,000 Sales discounts…………. 4,000 Purchase returns…….. 7,000 Inventory Sales…………………. ...

Net income [ 1 Answers ]

Question Accounts officers at xerox corporation discovered that significant errors have been made in the valuation of inventory and are worried that it might have significant impact on the net income and earnings per share. What are possible top 3 effects of the errors on the net income? What...

Net Income/ Net Loss [ 2 Answers ]

How does an employer calculate his or her payroll tax deduction for net income or net loss?

Net Income? [ 3 Answers ]

I am trying to find the net income for the following: Operating Income=5 million net depreciation expense=1 million Interest expense=1 million tax rate=40% current assets=14 million non interest liabilities=4 million net plant & equipment=15 million after tax cost of capital=10%

Net income [ 1 Answers ]

The changes to the account balances of Fritzs furniture Co Are as follows Cash 79,000 Acct Rec 45,000 Inventory 127,000 Investments (47,000)

View more questions Search