Question

A. At what amount will the following accounts appear on the consolidated financial statements for 2020?

a. Dividend Income: $75,000
b. Operating Expenses: $785,000
c. Equity Investment: $1,341,500
d. Property, Plant and Equipment (net of accumulated depreciation): $350,000
e. Goodwill: $450,000
f. Retained Earnings: $3,158,500

B. The additional consideration of $5,000,000 offered to Tiffany employees does not affect the purchase price or consolidated amounts, as it is a separate consideration outside the original acquisition.

Answer 1

The accounts on the consolidated financial statements for 2020 are Dividend Income: $75,000, Operating Expenses: $785,000, Equity Investment: $1,341,500, Property, Plant and Equipment (net of accumulated depreciation): $350,000, Goodwill: $450,000, and Retained Earnings: $3,158,500.

Step-by-step explanation:

The following accounts will appear on the consolidated financial statements for 2020:

1. Dividend Income: $75,000
2. Operating Expenses: $785,000
3. Equity Investment: $1,341,500
4. Property, Plant and Equipment (net of accumulated depreciation): $350,000
5. Goodwill: $450,000
6. Retained Earnings: $3,158,500

The additional consideration of $5,000,000 offered to Tiffany employees does not affect the purchase price or consolidated amounts, as it is a separate consideration outside the original acquisition.