- Parson Company Acquired An 80 Percent Interest In Syber Company On January 1 2020 Any Portion Of Syber S Business Fair 1 (77.76 KiB) Viewed 9 times
- Parson Company Acquired An 80 Percent Interest In Syber Company On January 1 2020 Any Portion Of Syber S Business Fair 2 (34.66 KiB) Viewed 9 times
- Parson Company Acquired An 80 Percent Interest In Syber Company On January 1 2020 Any Portion Of Syber S Business Fair 3 (21.59 KiB) Viewed 9 times
- Parson Company Acquired An 80 Percent Interest In Syber Company On January 1 2020 Any Portion Of Syber S Business Fair 4 (23.32 KiB) Viewed 9 times
Parson
Company acquired an 80 percent interest in Syber
Company on January 1, 2020. Any portion of Syber's business fair value in excess of its corresponding book value was assigned to trademarks. This Intangible asset has subsequently undergone annual amortization based on a 15-year life. Over the past two years, regular intra-entity inventory sales transpired between the two companies. No payment has yet been made on the latest transfer. All dividends are paid in the same period as declared. The individual financial statements for the two companies as well as consolidated totals for 2021 follow (credit balances indicated by parentheses): Sales Cost of goods sold Operating expenses Income of Syber Separate
company net income. Consolidated net income Net income attributable to noncontrolling interest Net income attributable to Parson
Company Retained earnings, 1/1/21 Net income (above) Dividends declared Retained earnings, 12/31/21 Cash and receivables Inventory. Investment in Syber
Company Land, buildings, and equipment Trademarks Total assets Liabilities Common stock Additional paid-in capital Noncontrolling interest in Syber Retained earnings (above) Total liabilities and equities Parson
Company $ (752,000) 480,000 104,000 (109,600) $ (277,600) $ (711,400) (277,600) 71,000 (918,000) $ $ 316,000 173,000 410,400 369,000 0 $1,268,400 $ (204,400) (113,000) (33,000) (918,000) $(1,268,400) Syber
Company $(618,000) 364,000 106,000 0 $(148,000) $(293,000) (148,000) 30,000 $(411,000) $ 82,000 158,000 0 356,000 $ 596,000 $(105,000) (80,000) (411,000) $(596,000) Consolidated Totals $(1,228,000) 710,000 213,000 $ (305,000) 27,400 $ (277,600) $ (711,400) (277,600) 71,000 $ (918,000) $ 383,000 314,000 0 725,000 39,000 $1,461,000 $ (294,400) (113,000) (33,000) (102,600) (918,000) $(1,461,000) a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current-year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of Intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber
Company computed? 1. With a tax rate of 21 percent, what income tax journal entry is recorded if the companies prepare a consolidated tax return? J. With a tax rate of 21 percent, what income tax journal entry is recorded if these two companies prepare separate tax returns?
Req A to H Req 1 and J a. What method does Parson use to account for its investment in Syber? b. What is the balance of the intra-entity inventory gross profit deferred at the end of the current period? c. What amount was originally allocated to the trademarks? d. What is the amount of the current-year intra-entity inventory sales? e. Were the intra-entity inventory sales made upstream or downstream? f. What is the balance of the intra-entity liability at the end of the current year? g. What amount of intra-entity gross profit was deferred from the preceding period and recognized in the current period? h. What was the ending Noncontrolling Interest in Syber
Company computed? a. Method that Parson use to account for its investment b. Balance of the intra-entity inventory gross profit C. Amount allocated to trademarks d .. 1 D h Current year intra-entity inventory sales Intra-entity inventory sales made Balance of the intra-entity liability Intra-entity gross profit was deferred from the preceding period Ending noncontrolling interest phong thủ thành th Equity method Regland J > Show less &
View transaction list Record the income tax expense. 2 Record the income tax expense for Record the income tax expense for Syber. Parson. EX ***** Credit
No 1 2 3 Transaction 1 2 3 Income tax expense Income tax payable Income tax expense Income tax payable General Journal Income tax expense Deferred income tax asset <Req A to H Debit Credit