Beta Corp.owns 80% of Gamma Corp.The Consolidated Financial Statements of Beta Corp.for 2009 and 2010 are shown below:
Beta Corp.
Consolidated Income Statement,
For the year ended December 31,2009
Other Information:
Beta purchased its interest in Gamma on January 1,2005 for $360,000 when the company's net assets were valued at $300,000.The acquisition differential was allocated equally between goodwill and equipment,which was estimated to have a remaining useful life of ten years from the acquisition date.
Gamma reported a net Income of $75,000 and paid dividends of $5,000 during 2009.
Beta issued $300,000 in bonds during the year.Beta reported an equity method net Income of $300,000 and paid $70,000 in dividends to its shareholders.
Required:
Prepare a Consolidated Statement of Cash Flows for Beta Corp.for 2009.

Question

Beta Corp.owns 80% of Gamma Corp.The Consolidated Financial Statements of Beta Corp.for 2009 and 2010 are shown below:  
Beta Corp.
Consolidated Income Statement,
For the year ended December 31,2009  
Other Information:
Beta purchased its interest in Gamma on January 1,2005 for $360,000 when the company's net assets were valued at $300,000.The acquisition differential was allocated equally between goodwill and equipment,which was estimated to have a remaining useful life of ten years from the acquisition date.
Gamma reported a net Income of $75,000 and paid dividends of $5,000 during 2009.
Beta issued $300,000 in bonds during the year.Beta reported an equity method net Income of $300,000 and paid $70,000 in dividends to its shareholders.
Required:
Prepare a Consolidated Statement of Cash Flows for Beta Corp.for 2009.

Quizplus · Accepted Answer

The Answer of Beta Corp.owns 80% of Gamma Corp.The Consolidated Financial Statements of Beta Corp.for 2009 and 2010 are shown below:  
Beta Corp.
Consolidated Income Statement,
For the year ended December 31,2009  
Other Information:
Beta purchased its interest in Gamma on January 1,2005 for $360,000 when the company's net assets were valued at $300,000.The acquisition differential was allocated equally between goodwill and equipment,which was estimated to have a remaining useful life of ten years from the acquisition date.
Gamma reported a net Income of $75,000 and paid dividends of $5,000 during 2009.
Beta issued $300,000 in bonds during the year.Beta reported an equity method net Income of $300,000 and paid $70,000 in dividends to its shareholders.
Required:
Prepare a Consolidated Statement of Cash Flows for Beta Corp.for 2009.

Beta CorpOwns 80% of Gamma Corp