Pirate Corporation acquired 85 percent of Ship Company’s voting shares of stock in 20X7. During 20X8, Pirate purchased 50,000 circuit boards for $15 each and sold 28,000 of them to Ship for $20 each. Ship sold all of the units to unrelated entities prior to December 31, 20X8, for $30 each. Both companies use perpetual inventory systems. Which worksheet consolidating entry is needed in preparing consolidated financial statements for 20X8 to remove all effects of the intercompany sale?

Downstream sales are when the subsidiary sells to the parent:

Thomas Foods Corporation purchases 40% of common stock of Clark Foods Corporation for $550,000. The excess of the fair value of the net assets of Clark Foods over the book value of the net assets is $125,000. The differential can be traced to land of $90,000, equipment of $35,000, and goodwill of $75,000. What is Thomas Foods Corporation’s share of goodwill?

What is the consensus sequence? Provide the consensus sequence in FASTA format.

On December 31, 20X5, Pluto Company acquired 100 percent of Saturn Corporation’s common stock for $300,000. Balance sheet information for Saturn just prior to the acquisition is given here: Based on the information provided, what amount will be included as Investment in Saturn Corporation in the consolidated balance sheet immediately following the acquisition?

Which of the following is a journal entry to record the amortization of the differential on the investor’s books when the equity method is applied?

Tanner Company, a subsidiary acquired for cash, owned equipment with a fair value higher than the book value as of the date of combination. A consolidated balance sheet prepared immediately after the acquisition would include this difference in:

On January 1, 20X8, Parsley Corporation acquired 75 percent of Sage Company’s voting common stock for $90,000 cash. At that date, the fair value of the noncontrolling interest was $30,000. Sage’s balance sheet at the date of acquisition contained the following balances:   At the date of acquisition, the reported book values of Sage’s assets and liabilities approximated fair value. Consolidating entries are being made to prepare a consolidated balance sheet immediately following the business combination.  Based on the preceding information, in the entry to eliminate the investment balance,

Peach Corporation owns 85% of Lemon Corporation. Peach Corporation purchased inventory from Lemon Corporation for $120,000 on September 20, 20X1. Peach resold 80 percent of the inventory to unaffiliated companies prior to December 31, 20X1, for $140,000. What amount of sales will be reported in the 20X1 Consolidated Income Statement?

On January 1, 20X6, Plus Corporation acquired 90 percent of Side Corporation for $180,000 cash. Side reported net income of $30,000 and dividends of $10,000 for 20X6, 20X7, and 20X8. On January 1, 20X6, Side reported common stock outstanding of $100,000 and retained earnings of $60,000, and the fair value of the noncontrolling interest was $20,000. It held land with a book value of $30,000 and a market value of $35,000 and equipment with a book value of $50,000 and a market value of $60,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of five years. All depreciable assets held by Side at the date of acquisition had a remaining economic life of five years. Plus uses the equity method in accounting for its investment in Side. Based on the preceding information, the increase in the fair value of patents held by Side is: