Persaud Ltd. acquired 100% of the voting shares of Singh Ltd. on January 1, 20X6, for $ 1,255,000. The financial statement of Singh Ltd. on the date of acquisition was as follows:The inventory will be sold and the accounts receivable collected within seven months, and the depreciable capital assets will be depreciated over 10 years, straight- line, with no salvage value. During 20X6, Singh Ltd. sold inventory to Persaud Ltd. for $ 150,000 with a 20% markup on retail. At the end of 20X6, $ 30,000 (at retail) of these goods was still in the inventory. Persaud Ltd. sold $ 200,000 of goods to Singh Ltd. during 20X6, with a 25% markup on retail, and $ 40,000 (at retail) of these were still in inventory at the end of 20X6. All of these goods remaining in inventory were sold during 20X7. During 20X7, Persaud Ltd. sold $ 180,000 of goods to Singh Ltd. with a 25% markup on retail, and $ 50,000 (at retail) of these goods was in inventory at the end of 20X7. In addition, Singh Ltd. sold goods to Persaud Ltd. for $ 220,000 with a 20% markup on retail, and $ 60,000 (at retail) of these were still in inventory at the end of 20X7. All of these remaining goods were sold during 20X8.The following are the financial statements of the two companies at December 31, 20X7:Continue.. RequiredCalculate the following, considering all dates carefully:1. Investment income, under the equity method, for 20X6.2. Consolidated net income for 20X7.3. Consolidated balance of accounts receivable at December 31, 20X7.4. Consolidated balance of depreciable capital assets at December 31, 20X7.5. Consolidated balance of inventory at December 31,20X7.
Persaud Ltd acquired 100 of the voting shares of Singh
Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...