Bassett Inc. acquired all of the outstanding common stock of…
Bassett Inc. acquired all of the outstanding common stock of Brinkman Corp. on January 1, 2019, for $422,000. Equipment with a ten-year life was undervalued on Brinkman’s financial records by $48,000. Brinkman also owned an unrecorded customer list with an assessed fair value of $71,000 and an estimated remaining life of five years.Brinkman earned reported net income of $185,000 in 2019 and $226,000 in 2020. Dividends of $75,000 were paid in each of these two years. Selected account balances as of December 31, 2021, for the two companies follow. Bassett Brinkman Revenues $ 1,120,000 $ 860,000 Expenses 500,000 600,000 Investment income Not given 0 Retained earnings, 1/1/21 850,000 650,000 Dividends paid 132,000 80,000 If the partial equity method had been applied, what was 2021 consolidated net income? A) $260,000. B) $620,000. C) $861,000. D) $880,000. E) $1,291,000.
Read DetailsA client sustained a head injury when falling off of a ladde…
A client sustained a head injury when falling off of a ladder. While in the hospital, the client begins voiding large amounts of clear urine and states he is very thirsty. The clinet states that he feels weak and has had an 8 lb weight loss since admission. What should the client be tested for?
Read DetailsGale Co. was formed on January 1, 2021 as a wholly owned for…
Gale Co. was formed on January 1, 2021 as a wholly owned foreign subsidiary of a U.S. corporation. Gale’s functional currency was the stickle (§). The following transactions and events occurred during 2021: Jan. 1 Gale issued common stock for §2,000,000.June 30 Gale paid dividends of §50,000.Dec. 31 Gale reported net income of §120,000 for the year. Exchange rates for 2021 were: Jan. 1 $ 1 = § 0.50June 30 $ 1 = § 0.47Dec. 31 $ 1 = § 0.44Weighted average rate for the year $ 1 = § 0.46 What was the amount of the translation adjustment for 2021? A) $121,500 increase in relative value of net assets. B) $121,500 decrease in relative value of net assets. C) $62,000 decrease in relative value of net assets. D) $62,000 increase in relative value of net assets. E) $58,500 increase in relative value of net assets.
Read Details