On January 2, 2011, Parent Company paid $1,200,000 for 100% of the voting common stock of Sub Corp. At the time of the investment, Sub Corp had net assets with a book value of $800,000 and fair value of $1,000,000.…
FRC Inc. acquired Marketing Inc on 1 Marketing Inc. has 10,000 shares outstanding. Each share in Marketing Inc. was exchanged for half a share in FRC, Inc. Shares of FRC Inc., were trading at $100 per share at the date…
On January 1, Richard Company acquired all the net assets of Ulmer Company by issuing bonds with a face value and fair value of $500,000 and cash of $300,000. The fair values of Ulmer’s identifiable net assets equaled their book…
In 2013, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2015. Information related to the contract is as follows: 2013 2014 2015Cost incurred during the…
Muscle Construction signs a contract to build a classroom addition for Smallville High School. The total price for the addition is $800,000, and the initial cost estimate was $650,000. The project is expected to take 18 months to complete. The…
Fisher Company uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information about Fisher Company’s Work in Process inventory account has been provided for the month of May: During the month,…
Personal income amounted to $17 million last year. Personal current taxes amounted to $4 million and personal outlays for consumption expenditures , nonmortgage interest, and so forth were $12 million. A. What was the amount of disposable personal income last…
In early 2013, Yuliet received a gift of a home valued at $300,000 (from Yuliet’s Uncle, Marcus). Marcus also gave Yuliet a $25,000 cash gift. During 2013, Yuliet rented the home to Anne-Emilie. As a result of the lease with…
We did a lab with DNA standards. We made one to one solutions of onion DNA which we precipitated and a 4% NaCl solution. We measured the amount of DNA by using spectrophotometers. When we boiled the solution before measurement,…
For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $450,000 of factory labor costs are incurred of which $120,000 is indirect labor. Actual overhead incurred was $240,000. The amount of overhead debited to…
