Berkshire Hathaway's "A" stock has never split. As a result, in mid-2014 one share of its stock was selling at a price of more than ________ per share

In 2017, Blum, who is single, gave an outright gift of $50,000 to a friend, Gould, who needed the money to pay medical expenses. In filing the 2017 gift tax return, Blum was entitled to a maximum exclusion of

A. $20,000 B. $14,000 C. $50,000 D. $0

On January 1, 2016, Patrick Company purchased 60% of the common stock of Solomon Company for $180,000 . On this date, Solomon had common stock, other paid-in capital, and retained earnings of $20,000, $60,000, and $120,000 respectively. On January 1, 2016, the only tangible asset of Solomon that was undervalued was land, which was worth $15,000 more than book value. On January 1, 2017, Patrick

Company purchased an additional 30% of the common stock of Solomon Company for $140,000 . Net income and dividends for 2 years for Solomon Company were: 2016 2017 Net income for year $50,000 $80,000 Dividends, paid-in December 0 50,000 In the last quarter of 2017, Solomon sold $80,000 of goods to Patrick, at a gross profit rate of 30%. On December 31, 2017, $20,000 of these goods are in Patrick's ending inventory. In both 2016 and 2017, Patrick has accounted for its investment in Solomon using the simple equity method. Required: a. Using the information from the scenario or on the separate worksheet, prepare necessary determination and distribution of excess schedules for the two purchases. b. Complete the Figure 7-2 worksheet for consolidated financial statements for 2017 .Figure 7-2Trial Balance Eliminations andPatrick Solomon AdjustmentsAccount Titles Company Company Debit CreditInventory, December 31 80,000 50,000Other Current Assets 135,000Invest in Solomon. Co 377,000Other Long-Term Investments100,000Land 70,000 50,000Buildings and Equipment 300,000 220,000Accumulated Depreciation (100,000) (60,000)GoodwillCurrent Liabilities (70,000) (30,000)Long-Term Liabilities (80,000) (50,000)Common Stock – P Co. (100,000)Pd-in Cap in Exc - P Co. (200,000)Retained Earnings – P Co. (280,000)Common Stock – S Co.(20,000)Other Pd-in Capt – S C(60,000)Retained Earnings – S Co.(170,000)Net Sales (520,000) (450,000)Cost of Goods Sold 300,000 270,000Operating Expenses 120,000 100,000Subsidiary Income (72,000)Div Declared – P Co. 40,000Div Declared – S Co.50,000Consolidated Net IncomeTo NCI To Controlling Total NCI Controlling RE 12/31 0 0 Consol. Control. Consol. Income Retained Balance Account Titles Statement NCI Earnings Sheet Inventory, December 31 Other Current Assets Invest in Solomon. Co Other Long-Term Investments Land Buildings and Equipment Accumulated Depreciation Goodwill Current Liabilities Long-Term Liabilities Common Stock – P Co. Pd-in Cap in Exc – P Co. Retained Earnings – P Co. Common Stock – S Co. Other Pd-in Capt – S C Retained Earnings – S Co. Net Sales Cost of Goods Sold Operating Expenses Subsidiary Income Div Declared – P Co. Div Declared – S Co. Consolidated Net Income To NCI To Controlling Total NCI Controlling RE 12/31