Ask Experts Questions for FREE Help !
Ask
    kendrajac's Avatar
    kendrajac Posts: 3, Reputation: 1
    New Member
     
    #1

    Nov 2, 2011, 05:09 PM
    consolidation of the company seaman
    On January 1, 20X1, Prange Company acquired 100% of the common stock of Seaman Company for $600,000. On this date Seaman had total owners' equity of $400,000. Any excess of cost over book value is attributable to a patent, which is to be amortized over 10 years.

    During 20X1 and 20X2, Prange has appropriately accounted for its investment in Seaman using the simple equity method.

    On January 1, 20X2, Prange held merchandise acquired from Seaman for $30,000. During 20X2, Seaman sold merchandise to Prange for $100,000, of which $20,000 is held by Prange on December 31, 20X2. Seaman's gross profit on all sales is 40%.

    On December 31, 20X2, Prange still owes Seaman $20,000 for merchandise acquired in December.

    What is consolidated Net Income?
    What is controlled retained earnings?
    Attached Images
  1. File Type: pdf ACCT4100-EXAM 2 CONSOLIDATION.pdf (12.0 KB, 150 views)

Check out some similar questions!

Consolidation of Seaman Company [ 0 Answers ]

On January 1, 20X1, Prange Company acquired 100% of the common stock of Seaman Company for $600,000. On this date Seaman had total owners' equity of $400,000. Any excess of cost over book value is attributable to a patent, which is to be amortized over 10 years. During 20X1 and 20X2, Prange has...

I've been working with a debt consolidation company, however, one of my creditors has [ 3 Answers ]

I've been working with a highly reputable debt consolidation company and am just about done with the program (payment wise) and one of my creditors is taking my debt to the courts. The law firm representing the creditor filed a complaint and I filed an answer admitting to the debt. My debt...

To use or not to use a debt consolidation company? [ 4 Answers ]

I am about a year and a half out of college and, unfortunately, made some bad financial choices while in school and just after school. Luckily, I do not have any student loans, but my total debt is approximately $11,300.00 (I know, I know... ). I moved from NC to Chicago where, obviously, the cost...

?Best Debt Consolidation Company? [ 2 Answers ]

Good Afternoon! I am a 31 year old Social Worker, who is struggling to make my credit card payments. I have about 25,000 in debt. Some of it is my college as I was unable to receive any financial assistance. The rest of the debt is just from everyday living. As a social worker I have a very low...


View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.