Citoyenneté Flashcards

a. capital goods
b. consumer goods c. economics d. factors of production e. human capital f. opportunity cost g. scarcity h. services i. utility j. value

_______ arises because society does not have enough resources to produce all things people would like to have.

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accounting

Point Corporation acquired 60 percent of Stick Company's stock on January 1, 20X3, for 24,000 dollars in excess of book value. On that date, the book values and fair values of Stick's assets and liabilities were equal and the fair value of the noncontrolling interest was 16,000 dollars in excess of book value. The full amount of the differential at acquisition was assigned to goodwill of 40,000 dollars. At December 31, 20X6, Point management reviewed the amount assigned to goodwill and concluded it had been impaired. They concluded the correct carrying value at that date should be 30,000 dollars and the impairment loss should be assigned proportionately between the controlling and noncontrolling interests.

Balance sheet data for January 1, 20X6, and December 31, 20X6, and income statement data for 20X6 for the two companies are as follows:

POINT CORPORATION AND STICK COMPANY Balance Sheet Data January 1, 20X6

Item	Point Corporation		Stick Company
Cash	9,800 dollars		10,000 dollars
Accounts Receivable	60,000		50,000
Inventory	100,000		80,000
Total Current Assets		169,800 dollars		140,000 dollars
Land		70,000		20,000
Buildings & Equipment	300,000 dollars		200,000 dollars
Less: Accumulated Depreciation	(140,000)	160,000	(70,000)	130,000
Investment in Stick Company:		135,200
Total Assets		535,000 dollars		290,000 dollars
Accounts Payable		30,000 dollars		20,000 dollars
Bonds Payable		120,000		70,000
Common Stock	100,000 dollars		50,000 dollars
Retained Earnings	285,000	385,000	150,000	200,000
Total Liabilities and Equities		535,000 dollars		290,000 dollars

POINT CORPORATION AND STICK COMPANY Balance Sheet Data December 31, 20X6

Item	Point Corporation		Stick Company
Cash	26,800 dollars		35,000 dollars
Accounts Receivable	80,000		40,000
Inventory	120,000		90,000
Total Current Assets		226,800 dollars		165,000 dollars
Land		70,000		20,000
Buildings & Equipment	340,000 dollars		200,000 dollars
Less: Accumulated Depreciation	(165,000)	175,000	(85,000)	115,000
Investment in Stick Company:		139,600
Total Assets		611,400 dollars		300,000 dollars
Accounts Payable		80,000 dollars		15,000 dollars
Bonds Payable		120,000		70,000
Common Stock	100,000 dollars		50,000 dollars
Retained Earnings	311,400	411,400	165,000	215,000
Total Liabilities and Equities		611,400 dollars		300,000 dollars

POINT CORPORATION AND STICK COMPANY Income Statement Data Year Ended December 31, 20X6

Item	Point Corporation		Stick Company
Sales		400,000 dollars		200,000 dollars
Income from Stick Company:		16,400
		416,400 dollars		200,000 dollars
Cost of Goods sold	280,000 dollars		120,000 dollars
Depreciation and Amortization Expense	25,000		15,000
Other Expenses	35,000	(340,000)	30,000	(165,000)
Net Income		76,400 dollars		35,000 dollars
On January 1, 20X6, Point held inventory purchased from Stick for 48,000 dollars. During 20X6, Point purchased an additional 90,000 dollars of goods from Stick and held 54,000 dollars of its purchases on December 31, 20X6. Stick sells inventory to Point Corporation at 20 percent above cost.

Stick also purchases inventory from Point. On January 1, 20X6, Stick held inventory purchased from Point for 14,000 dollars, and on December 31, 20X6, it held inventory purchased from Point for 7,000 dollars. Stick's total purchases from Point were 22,000 dollars in 20X6. Point sells items to Stick at 40 percent above cost.

During 20X6, Point paid dividends of 50,000 dollars, and Stick paid dividends of 20,000 dollars. Assume that Point uses the fully adjusted equity method that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition.

Prepare all consolidation entries needed to complete a consolidation worksheet as of December 31 , 20X6.

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