When the parent company uses the cost method, an adjustment must be made to its retained earnings
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (19 reviews)
Under the cost method the parent has recorded only its share of dividends received from t...View the full answer
Answered By
Anthony Ngatia
I have three academic degrees i.e bachelors degree in Education(English & Literature),bachelors degree in business administration(entrepreneurship option),and masters degree in business administration(strategic management) in addition to a diploma in business management.I have spent much of my life in the academia where I have taught at high school,middle level colleges level and at university level.I have been an active academic essays writer since 2011 where I have worked with some of the most reputable essay companies based in Europe and in the US.I have over the years perfected my academic writing skills as a result of tackling numerous different assignments.I do not plagiarize and I maintain competitive quality in all the assignments that I handle.I am driven by strong work ethics and a firm conviction that I should "Do Unto others as I would Like them to do to me".
4.80+
76+ Reviews
152+ Question Solved
Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
Question Posted:
Students also viewed these Accounting questions
-
When the parent company purchases a subsidiary's bonds from a nonaffiliate for more than book value, what income statement accounts will be affected in preparing consolidated financial statements?...
-
Explain why, when a company uses average cost method with a periodic inventory system, the cost of goods sold and ending inventory costs are different from the amounts calculated when using the...
-
Determine the deposit that must be made to earn $39.27 in 225 days at 2.75%.
-
Over 90 percent of the energy dissipated by an incandescent light bulb is in the form of heat, not light. What is the temperature of a vacuum-enclosed tungsten filament with an exposed surface area...
-
Which of the following entities are includible in an affiliated group (if the 80% stock ownership requirements are met)? a. Domestic C corporation. b. Foreign corporation. c. Life insurance company...
-
Assuming the following ratios are constant, what is the sustainable growth rate? Total asset turnover = 1.75 Profit margin = 8.3% Equity multiplier = 1.85 Payout ratio = 40% Bethesda Mining Company...
-
Solve the IVP. Do not use Laplace transformation. \(\ddot{y}-y=t^{2}-\cos t, \quad y(0)=\frac{1}{2}, \dot{y}(0)=0\)
-
How can Kevins management project be his research project? Kevin found the discussion on insider action research in his part-time Masters Research methods module very revealing and stimulating. He...
-
The function g() is depicted below. Given the verbal description, (a) graph the given transformation of g, and (b) write an algebraic expression for the given transformation of g. The domain of g(z)...
-
Demand for Quiggly Pops follows an up and down pattern over the four quarters of a year, with peaks in the spring and winter months when special promotions are held. Production is handled by a highly...
-
Why does adding the parent's share of the increase in retained earnings of the subsidiary and the parent's retained earnings under the cost method result in consolidated retained earnings? Assume...
-
Is the impairment test for intangibles other than goodwill the same as the one used for goodwill ? Briefly explain.
-
Calculate the net ATP yield from the complete processing of a saturated fatty acid containing 17 carbons. Consider the b-oxidation steps, processing of acetyl-CoA through the citric acid cycle, and...
-
How have religious cults shaped the nation?
-
1.At what nominal rate, 30 quarterly deposits of $ 12600 per quarter advance will give an amount of $ 591600 four months after the last deposit was made? 2.What is the annual interest rate paid on...
-
A chemical reaction released 500 J of heat and AE of the system is -850 J. How much work was involved?
-
Determine the tax consequences to each shareholder and the corporation and show supporting computations. Your answers should include: Gain/loss realized by each shareholder Gain/loss recognized by...
-
A mass of ice at 0 o C is heated until it is all dry saturated steam. If 1 9 0 0 kJ are transferred during the process, determine the mass.
-
The renewability index is defined as the fraction of total U.S. energy consumption that comes from non-nuclear renewable energy. What was the percent increase in the renewability index from 1970 to...
-
1. Advertising for eyeglasses _________ (increases/decreases) the price of eyeglasses because advertising promotes _________. 2. An advertisement that succeeds in getting consumers to try the product...
-
If a parent in accounting for its subsidiary amortizes patents on its separate books, why do we include an adjustment for patents amortization in the consolidation workpaper?
-
How is noncontrolling interest share entered in consolidation workpapers?
-
How is noncontrolling interest share entered in consolidation workpapers?
-
Esther and Moses got engaged during December 2020 are happily anticipating their upcoming nuptials in December 2021. One of their friends informed them that they could choose the type of matrimonial...
-
Computer Assisted Audit Tools and Techniques: Imagine you're working as an auditor, and your assignment involves using computer - assisted audit tools to analyze a substantial dataset of financial...
-
Generate a set of 5 equidistant points within [-1 1] from the function 1+25 b) Plot the resulting function along with the data points on the same graph. Employ MATLAB's spline function to interpolate...
Study smarter with the SolutionInn App