Tower Corporation's controller has just finished preparing a consolidated balance sheet,income statement,and statement of changes in retained earnings for the year ended December 31,2009.Tower owns 80 percent of Network Corporation's stock,which it acquired at underlying book value on November 1,2006.At that date,the fair value of the noncontrolling interest was equal to 20 percent of Network Corporation's book value.The following information is available:
Consolidated net income for 2009 was $160,000.
Network reported net income of $50,000 for 2009.
Tower paid dividends of $30,000 in 2009.
Network paid dividends of $10,000 in 2009.
Tower issued common stock on February,18,2009,for a total of $100,000.
Consolidated wages payable decreased by $6,000 in 2009.
Consolidated depreciation expense for the year was $15,000.
Consolidated accounts receivable decreased by $20,000 in 2009.
Bonds payable of Tower with a book value of $102,000 were retired for $100,000 on December 31,2009.
Consolidated amortization expense on patents was $10,000 for 2009.
Tower sold land that it had purchased for $75,000 to a nonaffiliate for $80,000 on June 10,2009.
Consolidated accounts payable decreased by $7,000 during 2009.
Total purchases of equipment by Tower and Network during 2009 were $180,000.
Consolidated inventory increased by $36,000 during 2009.
There were no intercompany transfers between Tower and Network in 2009 or prior years except for Network's payment of dividends.Tower uses the indirect method in preparing its cash flow statement.
-Based on the preceding information,what amount will be reported in the consolidated cash flow statement as net cash used in investing activities for 2009?
A) $180,000
B) $100,000
C) $255,000
D) $110,000
Correct Answer:
Verified
Q1: Tower Corporation's controller has just finished preparing
Q1: Sigma Company develops and markets organic food
Q4: Tower Corporation's controller has just finished preparing
Q5: New Life Corporation has just finished preparing
Q7: Tower Corporation's controller has just finished preparing
Q10: New Life Corporation has just finished preparing
Q11: Which of the following observations concerning the
Q19: Which sections of the cash flow statement
Q23: On July 1,20X8,Fair Logic Corporation acquires 75
Q34: On January 1,20X8,Putter Corporation acquired 40 percent
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents