Following are selected accounts for Gemini Corporation and Mars Company as of December 31, 2019. Several of Gemini's accounts have been omitted. O Gemini Mars o Revenues $900,000 $500,000 o Cost of Goods Sold 360,000 200,000 o Depreciation expense 140,000 40,000 o Other expenses 100,000 60,000 o Equity in Mars' Income ? o Retained Earnings, 1/1/19 1,350,000 1,200,000 o Dividends 195,000 80,000 o Current Assets 300,000 1,380,000 o Land 450,000 180,000 o Building (Net) 750,000 280,000 o Equipment (Net) 300,000 500,000 o Liabilities 600,000 620,000 o Common Stock 450,000 80,000 o Additional Paid-in Capital 75,000 320,000 Gemini acquired 100% of Mars on January 1, 2015, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2015, Mars' land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10- year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment. The book value of Mars at Jan 1, 2015 was 857,500. Compute the December 31, 2019, consolidated common stock.
Following are selected accounts for Gemini Corporation and Mars Company as of December 31, 2019. Several of Gemini's accounts have been omitted. O Gemini Mars o Revenues $900,000 $500,000 o Cost of Goods Sold 360,000 200,000 o Depreciation expense 140,000 40,000 o Other expenses 100,000 60,000 o Equity in Mars' Income ? o Retained Earnings, 1/1/19 1,350,000 1,200,000 o Dividends 195,000 80,000 o Current Assets 300,000 1,380,000 o Land 450,000 180,000 o Building (Net) 750,000 280,000 o Equipment (Net) 300,000 500,000 o Liabilities 600,000 620,000 o Common Stock 450,000 80,000 o Additional Paid-in Capital 75,000 320,000 Gemini acquired 100% of Mars on January 1, 2015, by issuing 10,500 shares of its $10 par value common stock with a fair value of $95 per share. On January 1, 2015, Mars' land was undervalued by $40,000, its buildings were overvalued by $30,000, and equipment was undervalued by $80,000. The buildings have a 20-year life and the equipment has a 10- year life. $50,000 was attributed to an unrecorded trademark with a 16-year remaining life. There was no goodwill associated with this investment. The book value of Mars at Jan 1, 2015 was 857,500. Compute the December 31, 2019, consolidated common stock.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 98.3C
Related questions
Question
5
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning