Please include all steps of calculations for my reference. Thanks! Other Information:On December 31, 2014, Bluenotes had a building with a fair value that was $300,000greater than its carrying value. The building had an estimated remaining useful life of 20years.• On December 31, 2014, Bluenotes had an inventory with a fair value that was $200,000less than its carrying value. This inventory was sold in 2016.• During 2019, George Weston sold merchandise to Bluenotes for $100,000, a price thatincludes a gross profit of $40,000. During 2019, 40% of this merchandise was resold byBluenotes to third parties and the other 60% remains in its December 31, 2019inventories. On December 31, 2018, the inventories of Bluenotes contained merchandisepurchased from George Weston on which George Weston had recognized a gross profitof $20,000.• During 2019, George Weston declared and paid dividends of $300,000 while Bluenotesdeclared and paid dividends of $100,000.• George Weston accounts for its investment in Bluenotes using the cost method.• The retained earnings of George Weston as of December 31, 2018, was $12,000,000. Onthat date, Bluenotes had retained earnings of $9,800,000. Bluenotes has not issued anycommon shares since its acquisition by George Weston.There were no specific events or circumstances between 2015 and 2019 to indicate anyimpairment of goodwill.Required:Calculate consolidated net income for the year ending December 31, 2019. (You must alsoshow the allocation of the consolidated NI to the parent and the NCI.) At December 31, 2014, George Weston Ltd. purchased 90% of the outstanding common shares ofBluenotes Ltd. for $8.55 million in cash. On that date, the shareholders' equity of Bluenotestotaled $8 million and consisted of $1 million in common shares and $7 million in retainedearnings. Both companies use the straight-line method to calculate depreciation. Goodwill, ifany arises as a result of this business combination, is written down when there is an impairment.Both George Weston and Bluenotes report under accounting standards for private enterprisesand pay tax at the rate of 40%.For the year ending December 31, 2019, the statements of earnings for George Weston andBluenotes were as follows:George Weston$22,500,00016,000,000Bluenotes$9,800,0005,000,000Sales and other revenueCost of goods soldDepreciation expenseOther expenses2,500,0002,000,0001,800,0001,200,000Net income$2,200,000$1,600,000At December 31, 2019, the condensed statements of financial position for the two companieswere as follows:George Weston$31,000,000Bluenotes$13,500,000Total assets$5,000,00012,100,00013,900,000$1,200,0001,000,000LiabilitiesNo par common sharesRetained earnings11,300,000$13,500,000Total$31,000,000

Given: Information related to George Weston bluenotes company. Total Assets…

At December 31, 2014, George Weston Ltd. purchased 90% of the outstanding common shares of Bluenotes Ltd. for $8.55 million in cash. On that date, the shareholders' equity of Bluenotes totaled $8 million and consisted of $1 million in common shares and $7 million in retained earnings. Both companies use the straight-line method to calculate depreciation. Goodwill, if any arises as a result of this business combination, is written down when there is an impairment. Both George Weston and Bluenotes report under accounting standards for private enterprises and pay tax at the rate of 40%. For the year ending December 31, 2019, the statements of earnings for George Weston and Bluenotes were as follows: George Weston $22,500,000 16,000,000 Bluenotes $9,800,000 5,000,000 Sales and other revenue Cost of goods sold Depreciation expense Other expenses 2,500,000 2,000,000 1,800,000 $2,200,000 1,200,000 $1,600,000 Net income At December 31, 2019, the condensed statements of financial position for the two companies were as follows: George Weston $31,000,000 Bluenotes $13,500,000 Total assets Liabilities $5,000,000 12,100,000 $1,200,000 1,000,000 11,300,000 $13,500,000 No par common shares Retained earnings 13,900,000 $31,000,000 Total

At December 31, 2014, George Weston Ltd. purchased 90% of the outstanding common shares of Bluenotes Ltd. for $8.55 million in cash. On that date, the shareholders' equity of Bluenotes totaled $8 million and consisted of $1 million in common shares and $7 million in retained earnings. Both companies use the straight-line method to calculate depreciation. Goodwill, if any arises as a result of this business combination, is written down when there is an impairment. Both George Weston and Bluenotes report under accounting standards for private enterprises and pay tax at the rate of 40%. For the year ending December 31, 2019, the statements of earnings for George Weston and Bluenotes were as follows: George Weston $22,500,000 16,000,000 Bluenotes $9,800,000 5,000,000 Sales and other revenue Cost of goods sold Depreciation expense Other expenses 2,500,000 2,000,000 1,800,000 $2,200,000 1,200,000 $1,600,000 Net income At December 31, 2019, the condensed statements of financial position for the two companies were as follows: George Weston $31,000,000 Bluenotes $13,500,000 Total assets Liabilities $5,000,000 12,100,000 $1,200,000 1,000,000 11,300,000 $13,500,000 No par common shares Retained earnings 13,900,000 $31,000,000 Total

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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