PROBLEM 5 ON JANUARY 1, 2000 SKYWALKER COMPANY PURCHASED ALL OF


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PROBLEM 5 ON JANUARY 1, 2000 SKYWALKER COMPANY PURCHASED ALL OF THE OUTSTANDING STOCK OF SOLO COMPANY AT BOOK VALUE WHICH IT ACCOUNTS FOR USING THE INITIAL VALUE METHOD. IN 2016  SKYWALKER COMPANY SOLD INVENTORY TO SOLO COMPANY FOR $1,000,000 CASH.   THIS MERCHANDISE HAD COST SKYWALKER $400,000.  IN 2016 SOLO HAD NOT SOLD ANY OF THAT MERCHANDISE. IN 2017, SOLO SOLD 60% OF THE MERCHANDISE ACQUIRED FROM SKYWALKER FOR $1,000,000. IN 2018 SOLO SOLD THE REMAINING 40% OF THE MERCHANDISE ACQUIRED FROM SKYWALKER FOR $500,000. SOLO DOES NOT PAY DIVIDENDS REQUIRED; PREPARE THE JOURNAL ENTRY SKYWALKER MAKES IN 2016 WHEN IT SELLS THE INVENTORY TO SOLO…SKYWALKER USES PERPETUAL INVENTORY PREPARE THE JOURNAL ENTRY SOLO MAKES IN 2016 WHEN IT BUYS THE INVENTORY FROM SKYWALKER…SOLO ALSO USES PERPETUAL INVENTORY PREPARE THE JOURNAL ENTRY SOLO MAKES IN 2017 WHEN IT SELLS THE MERCHANDISE PREPARE THE JOURNAL ENTRY SOLO MAKES IN 2018 WHEN IT SELLS THE MERCHANDISE PREPARE ANY WORKSHEET ENTRIES NEEDED IN 2016 WITH RESPECT TO THIS INVENTORY TRANSACTION PREPARE ANY WORKSHEET ENTRIES NEEDED IN 2017 WITH RESPECT TO THIS INVENTORY TRANSACTION PREPARE ANY WORKSHEET ENTRIES NEEDED IN 2018 WITH RESPECT TO THIS INVENTORY TRANSACTION IN 2016 SKYWALKER REPORTED UNCONSOLIDATED INCOME OF $4,500,000 WHILE SOLO REPORTED INCOME OF $300,000 WHAT WAS CONSOLIDATED INCOME IN 2016? IN 2017 SKYWALKER REPORTED UNCONSOLIDATED INCOME OF $5,000,000 AND SOLO REPORTED INCOME OF $100,000 WHAT WAS CONSOLIDATED INCOME IN 2017? IN 2018 SKYWALKER REPORTED UNCONSOLIDATED INCOME OF $3,800,000 AND SOLO REPORTED INCOME OF $600,000.  WHAT WAS CONSOLIDATED INCOME IN 2018? ON JANUARY 1, 2016  SKYWALKER SHOWED RETAINED EARNINGS OF $8,000,000.  SKYWALKER DOES NOT PAY ANY DIVIDENDS.  WHAT WAS SKYWALKER UNCONSOLIDATED AND CONSOLIDATED RETAINED EARNINGS ON:   12/31/16    12/31/17 AND 12/31/18? PROBLEM 6 ON JANUARY 1, 2002  TRUMP COMPANY ACQUIRED ALL OF THE STOCK OF CRUZ COMPANY AT BOOK VALUE.   NEITHER TRUMP NOR CRUZ PAY ANY DIVIDENDS AND TRUMP USES THE INITIAL VALUE METHOD FOR ITS INVESTMENT IN CRUZ. ON JANUARY 1, 2010 TRUMP COMPANY PURCHASED A TRUCK FOR $400,000.  THIS TRUCK HAS A 20 YEAR LIFE WITH NO SALVAGE AND IS BEING DEPRECIATED USING STRAIGHT LINE DEPRECIATION. ON JANUARY 1,   2014  CRUZ COMPANY PURCHASED THE TRUCK FROM TRUMP FOR $350,000 ISSUING TRUMP A 1 YEAR 10% NOTE WITH PRINCIPLE AND INTERESET DUE ON JANUARY 1 2015.  CRUZ WILL DEPRECIATE THE TRUCK OVER 16 YEARS USING STRAIGHT LINE DEPRECIATION AND ZERO SALVAGE VALUE. ON JANUARY 1, 2015 CRUZ PAID THE INTEREST AND PRINCIPLE TO TRUMP ON JANUARY 1, 2018  CRUZ SOLD THE TRUCK TO RUBIO (AN OUTSIDE COMPANY) FOR $275,000. REQUIRED: RECORD THE JOURNAL ENTRY TRUMP MADE WHEN HE BOUGHT THE TRUCK DETERMINE THE ANNUAL DEPRECIATION OF THE TRUCK TO TRUMP COMPANY MAKE THE JOURNAL ENTRY TRUMP MAKES WHEN IT SELLS THE TRUCK TO CRUZ MAKE THE JOURNAL ENTRY CRUZ MAKES WHEN IT BUYS THE TRUCK DETERMINE THE ANNUAL DEPRECIATION OF THE TRUCK TO CRUZ COMPANY MAKE THE JOURNAL ENTRY CRUZ MAKES WHEN IT PAYS OFF THE LOAN TO TRUMP MAKE THE JOURNAL ENTRY CRUZ MAKES WHEN IT SELLS THE TRUCK TO RUBIO THE UNCONSOLIDATED INCOMES OF TRUMP AND CRUZ FOR 2014 TO 2018 ARE AS FOLLOWS: ON JANUARY 1 2014 TRUMP HAD CONSOLIDATED RETAINED EARNINGS OF $5,000,000 WHAT IS TRUMP’S UNCONSOLIDATED AND CONSOLIATED RETAINED EARNINGS ON 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 PREPARE THE NECESSARY WORKSHEET ENTRIES NEEDED IN 2014 IN 2015 IN 2018 ElderDangerMouse
posted a question · Apr 02, 2016 at 12:15am

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