A company reported net income of $200,000 during 2019. The company reported depreciation expense of $35,000, patent amortization

Answer:

e) $23.89

Explanation:

To find the present value of Canine Crates shares today, based on a return rate of 13%, we must first compute the annual value derived from dividends over three years as follows

D1= The yearly dividend x 2 ( Canine Crates intends to double the dividend each year for three years

D1= $0.45 x 2 = $0.9D2= $0.90 x 2 = $1.80

D3= $1.80 x 2 = $3.60

Subsequently, we calculate the stock’s value by summing the present values of each year's dividends.

This is founded on the following formula

= Dividend per year

r = required rate

n= period

Stock value = $0.9 / (1.13) + $1.80 / (1.13)∧2 + $3.60/ (1.13)∧3

Final stock valuation = $23.89

Answer:The question is incomplete; see the full question below:

Trim Corporation purchased 100 percent of Round Corporation's voting common stock on January 1, 20X2, at a cost of $405,000. At that time, the book values and fair values for Round's assets and liabilities were identical. Round announced the following summarized balance sheet information:

 Assets $ 715,000    Accounts Payable $ 102,000  

 Bonds Payable  208,000  

 Common Stock  120,000  

 Retained Earnings  285,000  

 Total $ 715,000    Total $ 715,000  

Round reported net income of $89,000 for 20X2 and paid dividends totaling $30,000.

Prepare the required consolidation entries for December 31, 20X2, in order to compile consolidated financial statements. (If a transaction/event does not require an entry, please select "No journal entry required" in the first account field.)

I have created the requisite journal entries to prepare consolidated accounts.

Refer to the necessary journals in the attached excel document.