1 2 ASSIGNMENT Master Corporation acquired 80 percent ownership of Stanley Wood Products Company on January 1, 20X1, for $160,000. On that date, the fair value of the non-controlling interest was $40,000, and Stanley reported retained earnings of $50,000 and had $100,000 of common stock outstanding. Master has used the equity method in accounting for its investment in Stanley. Trial balance data for the two companies on December 31, 20X5, are as follows: Additional Information: 1. On the date of combination, the fair value of Stanley’s depreciable assets was $50,000 more than book value. The differential assigned to depreciable assets should be written off over the following 10-year period. 2. There was $10,000 of intercorporate receivables and payables at the end of 20X5. Your Portfolio Project paper should be 8 to 10 pages in length, and address thoroughly Parts A, B and C below. Be sure to incorporate instructor feedback and suggestions into your final submission, in terms of any changes or additions to Parts A and B that you received during the course. Be sure to examine the Portfolio Project rubric to guide your project writing and presentation. 1. Give all journal entries that Master recorded during 20X5 related to its investment in Stanley. 2. Give all eliminating entries needed to prepare consolidated statements for 20X5. 3. Prepare a three-part worksheet as of December 31, 20X5. Include this in table format in the Word document. Following your worksheet, in two or three pages analyze the process, specifically addressing how the transactions impact the financial statements, and how an outside user of the financial statements would use the information provided. 1. Give all journal entries that Master recorded during 20X5 related to its investment in Stanley. Cash 8,000 Investment in Stanley Wood 8,000 (To Record Dividends from Stanley Wood) Investment in Stanley Wood 24,000 Income From Stanley Wood 24,000 (To Record Income Under Equity Method) Income From Stanley Wood 4,000 Investment in Stanley Wood 4,000 2. Give all eliminating entries needed to prepare consolidated statements for 20X5. Income from Subsidiary 20,000 Dividends Declared 8,000 Investment in SW Products Stock 12,000 (Eliminate Income from Subsidiary) Income to Non-Controlling Interest 5,000 Dividends Declared 2,000 Non-Controling Interest 3,000 Common Stock - SW Products 100,000 Retained Earnings 90,000 Differential 30,000 Investment in SW Products Stock 176,000 Non-Controling Interest 44,000 Building and Equipment 50,000 Accumulated Depreciation 20,000 Differential 30,000 (Assign Beginning Differential) Depreciation Expense 5,000 Accumulated Depreciation 5,000 (Amortise Differential) Accounts Payable 10,000 Cash and Receivables 10,000 (Eliminate Inter-Corporate Recivables and ...

1. 1
2
ASSIGNMENT
Master Corporation acquired 80 percent ownership of Stanley
Wood Products Company on January 1, 20X1, for $160,000. On
that date, the fair value of the non-controlling interest was
$40,000, and Stanley reported retained earnings of $50,000 and
had $100,000 of common stock outstanding. Master has used the
equity method in accounting for its investment in Stanley.
Trial balance data for the two companies on December 31,
20X5, are as follows:
Additional Information:
1. On the date of combination, the fair value of Stanley’s
depreciable assets was $50,000 more than book value. The
differential assigned to depreciable assets should be written off
over the following 10-year period.
2. There was $10,000 of intercorporate receivables and payables
at the end of 20X5.
Your Portfolio Project paper should be 8 to 10 pages in length,
and address thoroughly Parts A, B and C below. Be sure
to incorporate instructor feedback and suggestions into your
final submission, in terms of any changes or additions to Parts
A and B that you received during the course. Be sure to examine
the Portfolio Project rubric to guide your project writing and
presentation.
1. Give all journal entries that Master recorded during 20X5
related to its investment in Stanley.
2. Give all eliminating entries needed to prepare consolidated
statements for 20X5.
3. Prepare a three-part worksheet as of December 31, 20X5.

2. Include this in table format in the Word document. Following
your worksheet, in two or three pages analyze the process,
specifically addressing how the transactions impact the
financial statements, and how an outside user of the financial
statements would use the information provided.
1. Give all journal entries that Master recorded during 20X5
related to its investment in Stanley.
Cash
8,000
Investment in Stanley Wood
8,000
(To Record Dividends from Stanley Wood)
Investment in Stanley Wood
24,000
Income From Stanley Wood
24,000
(To Record Income Under Equity Method)
Income From Stanley Wood
4,000
Investment in Stanley Wood
4,000
2. Give all eliminating entries needed to prepare consolidated

3. statements for 20X5.
Income from Subsidiary
20,000
Dividends Declared
8,000
Investment in SW Products Stock
12,000
(Eliminate Income from Subsidiary)
Income to Non-Controlling Interest
5,000
Dividends Declared
2,000
Non-Controling Interest
3,000
Common Stock - SW Products
100,000
Retained Earnings
90,000
Differential
30,000
Investment in SW Products Stock
176,000
Non-Controling Interest

4. 44,000
Building and Equipment
50,000
Accumulated Depreciation
20,000
Differential
30,000
(Assign Beginning Differential)
Depreciation Expense
5,000
Accumulated Depreciation
5,000
(Amortise Differential)
Accounts Payable
10,000
Cash and Receivables
10,000
(Eliminate Inter-Corporate Recivables and Payables)
3. Prepare a three-part worksheet as of December 31, 20X5.
Master
Stanley Wood

5. Elimination Entries
Corporation
Company
Debit
Credit
Consolidated
Income Statement
Sales
200,000
100,000
300,000
Cost of Goods Sold
(120,000)
(50,000)
(170,000)
Depreciation Expense
(25,000)
(15,000)
5,000
(45,000)
Inventory Losses
(15,000)
(5,000)

6. (20,000)
Income from Stanley Wood
20,000
24,000
4,000
-
Non-Controlling Interest in Net Income
6,000
1,000
(5,000)
Controlling Interest in Net Income
60,000
30,000
35,000
5,000
60,000
Statement of Retained Earnings

7. Beginning Balance
314,000
90,000
90,000
314,000
Net Income
60,000
30,000
35,000
5,000
60,000
Dividend Declared
(30,000)
(10,000)
10,000
(30,000)
Ending Balance
344,000
110,000
125,000
15,000
344,000

8. Balance Sheet
Cash and Receivables
81,000
65,000
10,000
136,000
Inventory
260,000
90,000
350,000
Land
80,000
80,000
160,000
Buildings and Equipment
500,000
150,000
50,000
700,000
Accumulated Depreciation
(205,000)
(105,000)

9. 25,000
(335,000)
Investment in Stanley Wood
188,000
168,000
20,000
Total Assets
904,000
280,000
50,000
223,000
1,011,000
Accounts Payable
60,000
20,000
10,000
70,000
Notes Payable
200,000
50,000

10. 250,000
Common Stock
300,000
100,000
100,000
300,000
Retained Earnings
344,000
110,000
125,000
15,000
344,000
Non-Controlling Interest
42,000
47,000
5,000
Total Liabilities & Equity
904,000
280,000
235,000
62,000
1,011,000

11. 1
UNIVERSITY OF MASSACHUSETTS BOSTON
SCHOOL OF MANAGEMENT
AF445 Prof. Konan
Markets and Financial Institutions
Writing Assignment: Article Analysis
Identify two interesting articles about an issue related to money
and capital markets, financial
markets, financial instruments, international markets, and
economic policy. Then for each article,
write a 3-4-page analysis. For the choice of topics and selection
of your articles, your class notes
and readings should spark some ideas. Watching the news may
provide ideas as well. Ultimately,
you will have to read newspapers (The Boston Globe, The New
York Times, etc.), magazines
(The Economist, Money, Newsweek, Times, etc.), journals (The
Wall Street Journal), and/or
economic and financial news over the internet in order to

12. identify the articles for your analysis.
Due date:
May 13, 2016 (Friday)
Structure of analysis
Your analysis should contain the following:
1. How is your selected article related to money and capital
markets, financial markets,
financial instruments, international markets, and economic
policy?
2. What issue or question is your selected article addressing?
3. Why should this issue or question be of interest?
4. Summarize the article. Make sure to state the methods and
findings of the article.
5. Make your own assessment of the issue or question. Use
principles developed in the
course or textbook to support your arguments whenever it is
possible.
6. Provide a brief summary of your findings and conclusion.
7. Provide the references.
8. Provide tables/appendix (if necessary)
9. Provide figures/appendix (if necessary)

13. 2
Style and organization--Some basic rules
1. Title page with name.
2. Paper typed, double-spaced, with margin wide enough.
3. Pages numbered.
4. References.
5. Numbers, titles and brief explanations of figures and tables.
6. Footnotes (if applicable).
7. No typos.
8. Watch for grammatical mistakes and incorrect sentence
structures.
How long should your paper be?
Limit each analysis to 3-4 double-spaced typed pages
(excluding any tables, figures,
bibliography, and title page). Note that a short paper which
incorporates a lot of information is

14. much more impressive than a long paper which says very little.
How will your paper be graded?
Your paper will be graded on how completely and competently
your question is answered within
the above steps and structure. It should be well written (style
and organization) and on time.