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(Solved): On January 1, 2021, Pride, Inc. bought 80% of the outstanding voting common stock of Strong Corp. fo ...



On January 1, 2021, Pride, Inc. bought 80% of the outstanding voting common stock of Strong Corp. for $364,000. In allocating the fair value at the acquisition date, Pride noted that Strong having developed a customer list worth $35,000 unrecorded on its accounting records and having a five year remaining life. Any remaining excess was attributable to goodwill which has not been impaired.

As of December 31,2021, before preparing the consolidated worksheet, the financial statements appeared as follows:

Revenues Pride, Inc.. $ 420,000 Strong Co. $280,000 Cost of goods sold (196,000) (112,000) Operating expenses (28,000} (14.000) Net income $ 196 000 $154.000 Retained earnings, 1/1/21 $ 420,000 $210,000 Net income (above) 196,000 154,000 Dividends paid 0 o Retained earnings, 12/31/21 $ 616.000 $364.000 Cash and receivables $ 294,000 $126,000 Inventory 210,000 154,000 Investment in Strong Corp 364,000 0 Equipment (net) 616,000 420,000 Total assets $1.484.000 00.000 Liabilities $ 588,000 $196,000 Common stock 280,000 140,000 Retained earnings, 12/31/21 (above) 616,000 364,000 Total liabilities and stockholders' equity $1.484.000 $700.000

During 2021, Strong bought inventory for $112,000 and sold it to Pride for $140,000. Only half of this purchase had been paid for by Pride by the end of the year. 60% of these goods were still in the company's possession on December 31. Required: Compute the amounts requested

1. What is the amount of consolidated operating expenses?

2. What is the amount of consolidated cost of goods sold?

3. What is the amount of consolidated inventory?

4. What is the amount of consolidated revenues?

5. What is the amount of consolidated liabilities?

6. What is the amount of noncontrolling interest in subsidiary net income?



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