acct450 ch3

acct450 ch3

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Willkom Corporation bought 100 percent of Szabo, Inc., on January 1, 2011. On that date, Willkom's equipment (10–year life) has a book value of $472,500 but a fair value of $629,500. Szabo has equipment (10–year life) with a book value of $283,000 but a fair value of $440,000. Willkom uses the equity method to record its investment in Szabo. On December 31, 2013, Willkom has equipment with a book value of $330,750 but a fair value of $530,250. Szabo has equipment with a book value of $198,100 but a fair value of $409,100. What is the consolidated balance for the Equipment account as of December 31, 2013?
rev: 10_01_2012
$685,850.
$528,850.
$939,350. → $638,750.
Willkom's equipment book ... Show more content on Helpwriting.net ...Consolidated retained earnings (initial value method) $ Consolidated retained earnings (partial equity method) $
Under each of the following situations, what is the Investment in Rambis account balance on Herbert's books on January 1, 2013?
b–1. The parent uses the equity method.
Investment $
b–2. The parent uses the partial equity method.
Investment $
b–3. The parent uses the initial value method.
Investment $
Under each of the following situations, what is Entry *C on a 2013 consolidation worksheet? (Leave no cells blank. If no entry is required, select "No Journal Entry Required" in the account field and zero (0) in the amount field.)
c–1. The parent uses the equity method.
Date General Journal Debit Credit January 1, 2013 No Journal Entry Required
No Journal Entry Required
c–2. The parent uses the partial equity method.
Date General Journal Debit Credit January 1, 2013 Retained Earnings, 1/1/13
Investment in Rambis
c–3. The parent uses the initial value method.
Date General Journal Debit Credit January 1, 2013 Investment in Rambis
Retained Earnings, 1/1/13
rev: 02_07_2013_QC_26416 Explanation: a. Consolidated retained earnings–equity method
Herbert (parent)

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