On january 1, 2013, vacker co. acquired 70% of carper inc. by paying $650,000. this included a $20,000 control premium. carper reported common stock on that date of $420,000 with retained earnings of $252,000. a building was undervalued in the company's financial records by $28,000. this building had a ten-year remaining life. copyrights of $80,000 were to be recognized and amortized over 20 years.
carper earned income and paid cash dividends as follows:

net income dividends paid
2013 105,000 54,600
2014 134,400 61,600
2015 154,000 84,000

on december 31, 2015, vacker owed $30,800 to carper. there have been no changes in carper's common stock account since the acquisition.

required:

if the equity method had been applied by vacker for this acquisition, what were the consolidation entries needed as of december 31, 2015?

expert answer

7. problems and applications q7 congress and the president decide that the united states should reduce air pollution by reducing its use of gasoline. they impose a $0.50 tax on each gallon of gasoline sold. suppose they decided to impose the tax on consumers. in the following graph, shows the effect of a $0.50 tax on each gallon of gasoline sold imposed on consumers by shifting the demand or supply curve. demand supply 0 1 2 3 4 5 6 3.0 2.5 2.0 1.5 1.0 0.5 0 price of gasoline (dollars per gallon) quantity of gasoline (thousands of gallons) demand s 1 s 2 true or false: the price producers receive will be higher if the tax were imposed on consumers. true false if the demand for gasoline were more elastic, this tax would be effective in reducing the quantity of gasoline consumed. true or false: consumers of gasoline are by this tax. true false workers in the oil industry are by this tax.