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  • Fesler Inc Acquired All of The Outstanding Common Stock of

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    M Bilal Saleem
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    Fesler Inc acquired all shares of Pickett Company in January 2009. Fesler reported retained earnings of $520,000 and Pickett reported $240,000. In 2009-2010, Fesler's net income included equity in Pickett and it reported net income of $100,000 and $68,000, paying dividends of $25,000 each year. Pickett reported net income of $24,000 and $36,000, paying dividends of $10,000 each year. The question asks to calculate consolidated retained earnings on December 31, 2010 under the equity, partial equity, and initial value methods.

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    fesler Inc Acquired All of the Outstanding Common Stock Of

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    Fesler Inc acquired all shares of Pickett Company in January 2009. Fesler reported retained earnings of $520,000 and Pickett reported $240,000. In 2009-2010, Fesler's net income included equity in Pickett and it reported net income of $100,000 and $68,000, paying dividends of $25,000 each year. Pickett reported net income of $24,000 and $36,000, paying dividends of $10,000 each year. The question asks to calculate consolidated retained earnings on December 31, 2010 under the equity, partial equity, and initial value methods.

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    38 views1 page

    Fesler Inc Acquired All of The Outstanding Common Stock of

    Uploaded by

    M Bilal Saleem
    Fesler Inc acquired all shares of Pickett Company in January 2009. Fesler reported retained earnings of $520,000 and Pickett reported $240,000. In 2009-2010, Fesler's net income included equity in Pickett and it reported net income of $100,000 and $68,000, paying dividends of $25,000 each year. Pickett reported net income of $24,000 and $36,000, paying dividends of $10,000 each year. The question asks to calculate consolidated retained earnings on December 31, 2010 under the equity, partial equity, and initial value methods.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Fesler Inc acquired all of the outstanding common stock of

    Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1,
    2009. Annual amortization of $22,000 resulted from this transaction. On the date of the
    takeover, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000
    balance. Fesler reported net income of $100,000 in 2009 and $68,000 in 20010 and paid
    dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2009
    and $36,000 in 2010 and paid dividends of $10,000 in dividends each year. Assume that
    Fesler's reported net income includes Equity in Subsidiary Income.Required:1. If the parent's
    net income reflected use of the equity method, what were the consolidated retained earnings on
    December 31, 2010? 2. If the parent's net income reflected use of the partial equity method,
    what were the consolidated retained earnings on December 31, 2010? 3. If the parent's net
    income reflected use of the initial value method, what were the consolidated retained earnings
    on December 31, 2010?View Solution:
    Fesler Inc acquired all of the outstanding common stock of
    SOLUTION-- http://expertanswer.online/downloads/fesler-inc-acquired-all-of-the-outstanding-
    common-stock-of/

    See Answer here expertanswer.online


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