Survival Of The Prettiest By Nancy Etcoff

The following post has two assignments namely;

1.Survival Of The Prettiest By Nancy Etcoff

What are the major points that the author makes? Give examples of how the main themes were supported. Whom was the book targeted to? Would you recommend it to others (why or why not)?

2.Investment income recorded by Panta

Santa Corporation is 90 percent owned subsidiary of Panta Corporation, acquired by Panta on January 1, 20X1 for $270,000 when Santa’s common stock and retained earnings were $100,000 and $150,000
respectively. All book values of Santa’s assets and liabilities were equal to their fair values except unrecorded patent which its fair value is equal the differential value with remaining life of
10 years. Both firms are using FIFO method of inventory. Followings are the transactions of merchandize between these two firms:
———————————————————————————————————– Cost Sales value
Ending Inventory
———————————————————————————————————–
20X1 Panta sold to Santa $60,000 $ 80,000 $16,000
20X2 Panta sold to Santa 80,000 100,000 15,000
————————————————————————————————————
During 20X1 Santa sold an equipment with book value of $20,000 to Panta for $30,000. The remaining life of the equipment is 5 years.

—————————————————————————————————————–
Panta Santa
——————————————————————————————————————
Separate income (not included Investment income) for 20X1 $40,000 $30,000
Dividend 0 0

Income statements for Panta and Santa Corporations for 20X2 are:
—————————————————————————————————————–
Panta Santa
——————————————————————————————————————
Sales $300,000 $150,000
Income from Santa 43,300
Cost of Sales (200,000) ( 90,000)
Other expenses ( 67,000) (10,000)
Net Income $ 76,300 $ 50,000
Dividend 0 0

Balance Sheet item (December 31, 20X2):
Investment in Santa $324,600

Required:
1. Calculate total fair value of Santa as of 1/1/20X1
2. Calculate total value of the patent.

3. Calculate investment income recorded by Panta for 20X1.

4. Calculate balance of investment in Santa in the book of Panta as of December 31, 20X1

5. What is the net value of equipment reported in 20X1 consolidated balance sheet?
$_________________.

6. What is the net value of equipment reported in 20X2 consolidated balance sheet?
$_________________.

7. Verify the amount of Income from Santa for $43,300.

8. Unrealized profit in Santa’s beginning inventory is : $_________________.

9. Unrealized profit in Santa’s ending inventory is: $_________________.

10. Unrealized profit in equipment for 20X1 is: $_________________.

11. Patent (net) that appear in the Dec. 31, 20X2 consolidated balance sheet (show all of your calculations):
$_________________.

12. Patent (net) that appear in Panta’ book as of Dec. 31, 20X2 $_________________.

13. Verify the balance of investment in Santa that appear in the 20X2 Panta’s balance sheet :
$_______________.

14. How much investment in Santa is reported in the 20X2 consolidated balance sheet?
$_______________.

15. How much land is reported in Santa’s book as of Dec. 31, 20×2? $______________.

16. How much land is reported in consolidated balance sheet as of Dec. 31, 20×2?
$____________.

17. Minority Interest Income (Expense) for 20×2 (show all of your calculations)is :
$________________.

18. Consolidated (controlling group) net income for 20X2 is : $_______________.

19. Show, in detail, working paper eliminating entries for all inter-company merchandize inventory transactions in order to prepare 20×2 consolidated financial statements.

20. Prepare Consolidated Income Statement for year 20X2.

21. Show working paper eliminating entries related to equipment only for 20X3.