Accounting homework help

Accounting homework help.

For this assignment, use your Fundamentals of Advanced Accounting text to complete the following:
Problem 24 on page 135. This problem asks you to apply your knowledge of the three methods that an acquiring company can use in accounting for its investment in an acquiring company.
24. Foxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1, 2016, for $600,000 cash. Greenburg’s accounting records showed net assets on that date of $470,000, although equipment with a 10-year remaining life was undervalued on the records by $90,000. Any recognized goodwill is considered to have an indefinite life.
Greenburg reports net income in 2016 of $90,000 and $100,000 in 2017. The subsidiary declared dividends of $20,000 in each of these two years.
Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses.
$    (800,000)
$    (600,000)
Cost of goods sold
Depreciation expense
Investment income
Net income
$ (420,000)
$ (100,000)
Retained earnings, 1/1/18
$ (320,000)
Net income
Dividends declared
Retained earnings, 12/31/18
$ (400,000)
Current assets
$       300,000
$       100,000
Investment in subsidiary
Equipment (net)
Buildings (net)
Total assets
$ 3,200,000
$ 1,200,000
$    (900,000)
$    (500,000)
Common stock
Retained earnings
Total liabilities and equity
Determine the December 31, 2018, consolidated balance for each of the following accounts:
Depreciation Expense  Buildings
Dividends Declared  Goodwill
Revenues  Common Stock
How does the parent’s choice of an accounting method for its investment affect the balances computed in requirement (a)?
Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes?
If the parent company had used a different method of accounting for this investment, how could that method have been identified?
What would be Foxx’s balance for retained earnings as of January 1, 2018, if each of the following methods had been in use?
Initial value method.
Partial equity method.
Equity method.
For this assignment, use your Fundamentals of Advanced Accounting text to complete the following:
● Problem 14 on page 131. This problem tests your ability to apply acquisition accounting methods to reporting consolidated retained earnings.
● Problem 17 on page 133. This problem tests your ability to determine the amount of goodwill impairment.
14. Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2017, for $574,000 in cash. Annual excess amortization of $12,000 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $400,000, and Rambis reported a $200,000 balance. Herbert reported internal net income of $40,000 in 2017 and $50,000 in 2018 and declared $10,000 in dividends each year. Rambis reported net income of $20,000 in 2017 and $30,000 in 2018 and declared $5,000 in dividends each year.
Assume that Herbert’s internal net income figures above do not include any income from the subsidiary.
If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2018?
Would the amount of consolidated retained earnings change if the parent had applied either the initial value or partial equity method for internal accounting purposes?
Under each of the following situations, what is the Investment in Rambis account balance on Herbert’s books on January 1, 2018?
The parent uses the equity method.
The parent uses the partial equity method.
The parent uses the initial value method.
page 132Under each of the following situations, what is Entry *C on a 2018 consolidation worksheet?
The parent uses the equity method.
The parent uses the partial equity method.
The parent uses the initial value method
17. Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,094, including goodwill of $755. Seller’s fair value is assessed at $1,028 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $199 and $56, respectively). The following table summarizes current financial information for the Sellers reporting unit:
Carrying   Amounts
Fair Values
Tangible assets, net
$ 84
$ 137
Recognized intangible assets, net
Unrecognized intangible assets
Determine the amount of any goodwill impairment for Alomar’s Sellers reporting unit.
After recognition of any goodwill impairment loss, what are the reported carrying amounts for the following assets of Alomar’s reporting unit Sellers?
Tangible assets, net.
Customer list.
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