Polar acquired Snow on January 1, 2019 at a price $300,000 in excess of book value. Of that excess, $200,000 was allocated to an unrecorded patent with a 10-year life, with the remainder to goodwill. Polar uses the equity method to account for its investment in its subsidiary. In 2020, Snow sold to Polar land having a book value of $90,000 for a total price of $145,000. Polar still owns the land as of 12/31/21.
Financial statements of the two companies for the year ended December 31, 2021 are presented below.
Polar Snow
Sales revenue $2,500,000 $525,000
Cost of goods sold (1,750,000) (345,000)
Gross profit 750,000 180,000
Operating expenses (475,000) (102,500)
Income (loss) from Snow 57,500
Net Income $ 332,500 $ 77,500
Retained Earnings, 1/1/21 $ 840,700 $245,650
Net income 332,500 77,500
Dividends ( 52,900) (8,850)
Retained Earnings, 12/31/21 $1,120,300 $314,300
Cash and receivables $ 320,100 $178,200
Inventory 461,700 278,600
Equity investment in Snow 625,400
Property, plant & equipment (Net)1,496,500 321,700
Total Assets $2,903,700 $778,500
Accounts payable $ 182,400 $ 55,900
Accrued liabilities 205,300 70,200
Notes payable 810,000 212,000
Common stock 354,200 45,000
Additional paid-in capital 231,500 81,100
Retained Earnings, 12/31/2 11,120,300 314,300
Total Liabilities and Equities $2,903,700 $778,500
Required:
a. Prepare a schedule showing the computation of Income (loss) from subsidiary on Polar's pre-consolidation books for 2021.
b. Calculate the Equity Investment account on Polar's consolidation balance sheet at December 31, 2020.
c. Prepare the consolidation worksheet entries for 2021 in journal format.

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.

Cooper sues company a in state court in south carolina, where he lives, for negligence alleging personal injury and property damage of $100,000 after a truck driven by an employee of company a rear-ended his pickup truck. company a is incorporated in delaware, has its headquarters in new york, but does a substantial amount of business in south carolina. claiming diversity of citizenship, company a seeks removal to federal district court, but cooper opposes the motion. which of the following is true regarding whether the case may be properly removed to federal district court? the amount in controversy satisfies diversity requirements; and if company a's nerve center is in a state other than south carolina, then the case may be properly removed to federal court.the amount in controversy satisfies diversity requirements; and because company a is incorporated and has its headquarters in a state other than south carolina, the case may be properly removed to federal court.because the amount in controversy satisfies diversity requirements and company a is incorporated in a state other than south carolina, the case may be properly removed to federal court regardless of where company a's headquarters, nerve center, or principal place of business is located.because the amount in controversy satisfies diversity requirements and company a is headquartered in a state other than south carolina, the case may be properly removed to federal court regardless of where company a is incorporated and regardless of the location of its nerve center.because the amount in controversy fails to satisfy jurisdictional requirements, regardless of the location of company a, the case may not be removed to federal court.

At present, the united states has an embargo against north korea because a. the two countries have extremely poor political relations. b. north korea will not adopt a capitalist government. c. north korean products are too difficult to use. d. north korea has an embargo on american products. e. products from north korea are in higher demand than american-made products.