Answered You can hire a professional tutor to get the answer.
Several years ago Polar Inc. purchased an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were...
Several years ago Polar Inc. purchased an 80% interest in Icecap Co. The book values of Icecap's asset and liability accounts at that time were considered to be equal to their fair values. Polar paid an amount corresponding to the underlying book value of Icecap so that no allocations or goodwill resulted from the purchase price.The following selected account balances were from the individual financial records of these two companies as of December 31, 2009: Assume that Polar sold inventory to Icecap at a markup equal to 40% of cost. Intercompany transfers were $126,000 in 2008 and $154,000 in 2009. Of this inventory, $39,200 of the 2008 transfers were retained and then sold by Icecap in 2009 while $58,800 of the 2009 transfers were held until 2010. Required: On the consolidated financial statements for 2009, determine the balances that would appear for the following accounts: Cost of Goods Sold, Inventory and Non-controlling Interest in Subsidiary's Net Income. (If you use a gross profit percentage, do not round the calculation.) Faberge Co. began operating a subsidiary in a foreign country on January 1, 2008 by acquiring all of the common stock for §50,000. This subsidiary immediately borrowed §120,000 on a five-year note with ten percent interest payable annually beginning on January 1, 2008. A building was then purchased for §170,000. This property had a ten-year anticipated life and no salvage value and was to be depreciated using the straight-line method. The building was immediately rented for three years to a group of local doctors for §6,000 per month. By year-end, payments totaling §60,000 had been made. On October 1, §5,000 were paid for a repair made on that date. A cash dividend of §6,000 was transferred back to Faberge on December 31, 2008. The functional currency for the subsidiary was the stickle. Currency exchange rates were as follows: Prepare a balance sheet for this subsidiary in stickles and then translate these amounts into U.S. dollars.
