Question: When does the SEC staff believe that push down accounting
When does the SEC staff believe that push down accounting should be applied?
Answer to relevant QuestionsOn January 1, 2011, Palmero Company purchased an 80% interest in Santos Company for $2,800,000, at which time Santos Company had retained earnings of $1,000,000 and capital stock of $500,000. On the date of acquisition, the ...sOn January 1, 2011, Perini Company purchased an 85% interest in Silvas Company for $400,000. On this date, Silvas Company had common stock of $90,000 and retained earnings of $210,000. An examination of Silvas Company’s ...On January 2, 2011, Press Company purchased on the open market 90% of the outstanding common stock of Sensor Company for $800,000 cash. Balance sheets for Press Company and Sensor Company on January 1, 2011, just before the ...P Company sells inventory costing $100,000 to its subsidiary, S Company, for $150,000. At the end of the current year, one-half of the goods remains in S Company's inventory. Applying the lower of cost or market rule, S ...P Company owns 80% of the outstanding stock of S Company. During 2011, S Company reported net income of $525,000 and declared no dividends. At the end of the year, S Company’s inventory included $487,500 in unrealized ...
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