All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
modern advanced accounting
Questions and Answers of
Modern Advanced Accounting
Cairns owns 75 percent of the voting stock of Hamilton, Inc. The parent’s interest was acquired several years ago on the date that the subsidiary was formed. Consequently, no goodwill or other
On January 1, 2021, Pikes Corporation loaned Venti Company $300,000 and agreed to guarantee all of Venti’s long-term debt in exchange for (1) decision-making authority over all of Venti’s
On January 1, 2021, Access IT Company exchanged $1,000,000 for 40 percent of the outstanding voting stock of Net Connect. Especially attractive to Access IT was a research project underway at Net
On December 31, 2020, Petra Company invests $20,000 in Valery, a variable interest entity. In contractual agreements completed on that date, Petra established itself as the primary beneficiary of
The following describes a set of arrangements between TecPC Company and a variable interest entity (VIE) as of December 31, 2020. TecPC agrees to design and construct a new research and development
Paige Clothing Company (Paige) helped form Apparel Media LLC, a company that will conduct e-commerce sales for Paige through a dedicated internet site. Two outside investors contributed $50,000 in
On January 1, 2021, Stamford reacquires 8,000 of the outstanding shares of its own common stock for $24 per share. None of these shares belonged to Neill. How does this transaction affect the parent
On January 1, 2021, Stamford issues 10,000 additional shares of common stock for $15 per share. Neill does not acquire any of this newly issued stock. How does this transaction affect the parent
On January 1, 2021, Stamford issues 10,000 additional shares of common stock for $25 per share. Neill acquires 8,000 of these shares. How will this transaction affect the parent company’s
Premier Company owns 90 percent of the voting shares of Stanton, Inc. Premier reports sales of $480,000 during the current year, and Stanton reports $264,000. Stanton sold inventory costing $28,800
Pesto Company possesses 80 percent of Salerno Company’s outstanding voting stock. Pesto uses the initial value method to account for this investment. On January 1, 2017, Pesto sold 9 percent bonds
Net cash flows from financing activities werea. $(25,000).b. $(37,000).c. $(38,000).d. $(42,000).Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent–owned subsidiary
Net cash flows from operating activities werea. $12,000.b. $20,000.c. $24,000.d. $25,000.Comparative consolidated balance sheet data for Iverson, Inc., and its 80 percent–owned subsidiary Oakley
The Edison Eagles Players’ Association and Mr. Sideline, the CEO and majority owner of Edison Eagles Soccer, Inc., ask your help in resolving a salary dispute. Mr. Sideline presents the following
On January 1, 2020, James Company purchased 100 percent of the outstanding voting stock of Nolan, Inc., for $1,000,000 in cash and other consideration. At the purchase date, Nolan had common stock of
Kelly Company acquired 75 percent of Helton Company’s outstanding voting shares on January 1, 2019, in exchange for $285,000 in cash. The subsidiary’s stockholders’ equity accounts totaled
On January 1, 2020, Panther, Inc., issued securities with a total fair value of $577,000 for 100 percentof Stark Corporation’s outstanding ownership shares. Stark has long supplied inventory
The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020, in
Assume the same basic information as presented in Problem 34 except that Monica employs the equity method of accounting. Hence, it reports $102,740 investment income for 2021 with an Investment
On January 1, 2019, Monica Company acquired 70 percent of Young Company’s outstanding common stock for $665,000. The fair value of the noncontrolling interest at the acquisition date was $285,000.
On January 1, 2019, Plymouth Corporation acquired 80 percent of the outstanding voting stock of Sander Company in exchange for $1,200,000 cash. At that time, although Sander’s book value was
On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $372,000. Stinson’s book value on that date consisted of common stock of $100,000 and
Following are financial statements for Moore Company and Kirby Company for 2021:Moore purchased 90 percent of Kirby on January 1, 2020, for $657,000 in cash. On that date, the 10 percent
Compute the balances in Problem 29 again, assuming that all intra-entity transfers were made from ClipRite to ProForm.Data from Problem 29ProForm acquired 70 percent of ClipRite on June 30, 2020, for
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on Clip-Rite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being
Pitino acquired 90 percent of Brey’s outstanding shares on January 1, 2019, in exchange for $342,000 in cash. The subsidiary’s stockholders’ equity accounts totaled $326,000, and the
On January 1, 2021, Sledge had common stock of $120,000 and retained earnings of $260,000. During that year, Sledge reported sales of $130,000, cost of goods sold of $70,000, and operating expenses
Allison Corporation acquired 90 percent of Bretton on January 1, 2019. Of Bretton’s total acquisition-date fair value, $60,000 was allocated to undervalued equipment (with a 10-year remaining life)
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when
Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2019, Padre transferred equipment to Sonora for $95,000. The equipment had cost $130,000 originally but had a $50,000 book
On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $810,000 in cash and stock options. At the acquisition date, NetSpeed had common stock
Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2021, the companies had the
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $612,000 in cash and other consideration. At the acquisition date, Protrade
On January 1, 2020, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $300,000 consideration. At the acquisition date, the fair value of the 40 percent
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $400,000. Any excess fair value was assigned to
On January 1, 2020, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing
The following are several figures reported for Allister and Barone as of December 31, 2021:Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired subsidiary’s fair
Thomson Corporation owns 70 percent of the outstanding stock of Stayer, Incorporated. On January 1, 2019, Thomson acquired a building with a 10-year life for $460,000. Thomson depreciated the
Dunn Corporation owns 100 percent of Grey Corporation’s common stock. On January 2, 2020, Dunn sold to Grey $40,000 of machinery with a carrying amount of $30,000. Grey is depreciating the acquired
Angela, Inc., holds a 90 percent interest in Corby Company. During 2020, Corby sold inventory costing $77,000 to Angela for $110,000. Of this inventory, $40,000 worth was not sold to outsiders until
Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2020, Skybox sold inventory costing $160,000 to Parkette for $200,000. A total of 18 percent of this
What is the total for consolidated cost of goods sold?a. $670,000b. $690,000c. $788,000d. $790,000Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the
What is the total for consolidated inventory?a. $143,000b. $173,000c. $175,000d. $183,000Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following
What is the total for consolidated sales revenue?a. $800,000b. $970,000c. $1,000,000d. $1,100,000Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the
How are intra-entity inventory gross profits created, and what consolidation entries does the presence of these gross profits necessitate?
On October 18, 2020, Armstrong Auto Corporation ("Armstrong") announced its plan to acquire 80 percent of the outstanding 500,000 shares of Bardeen Electric Corporation’s ("Bardeen") common stock
Costco Wholesale Corporation owns and operates membership warehouses in the United States, Canada, United Kingdom, Mexico, Japan, Korea, Australia, Spain, France, and Iceland. Costco also engages in
Prior to 2018, Celgene Corporation, a biopharmaceutical company (with specialities in oncology, inflammation, and immunology) had owned a 9.6 percent equity interest in Juno Therapeutics Inc. (Juno).
On January 1, 2020, Bretz, Inc., acquired 60 percent of the outstanding shares of Keane Company for $573,000 in cash. The price paid was proportionate to Keane’s total fair value although at the
On January 1, 2020, Allan Company bought a 15 percent interest in Sysinger Company. The acquisition price of $184,500 reflected an assessment that all of Sysinger’s accounts were fairly valued
On July 1, 2021, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities. The remaining 30 percent of Atlanta’s
Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2021:Gibson acquired 60 percent of Davis on April 1, 2021, for $528,000. On that date,
Adams Corporation acquired 90 percent of the outstanding voting shares of Barstow, Inc., on December 31, 2019. Adams paid a total of $603,000 in cash for these shares. The 10 percent noncontrolling
Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January 1, 2021, for $802,720 cash. At the acquisition date, Sierra’s total fair value, including the
The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2020. The remaining 20 percent of Devine’s shares also traded
On January 1, 2020, Paloma Corporation exchanged $1,710,000 cash for 90 percent of the outstanding voting stock of San Marco Company. The consideration transferred by Paloma provided a reasonable
Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before
The following are several account balances taken from the records of Karson and Reilly as of December 31, 2021. A few asset accounts have been omitted here. All revenues, expenses, and dividend
Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2019. Miller paid $664,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20
On January 1, 2019, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor’s shares continued to trade at a total value of $210,000. The new subsidiary
Posada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2019, for $840,000. The subsidiary’s total fair value was assessed at $1,200,000 although its book
On January 1, 2021, Morey, Inc., exchanged $178,000 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of
On January 1, 2020, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland’s outstanding voting stock, representing a 60 percent
On January 1, 2019, Parflex Corporation exchanged $344,000 cash for 90 percent of Eagle Corporation’s outstanding voting stock. Eagle’s acquisition date balance sheet follows:On January 1, 2019,
Plaza, Inc., acquires 80 percent of the outstanding common stock of Stanford Corporation on January 1, 2021, in exchange for $900,000 cash. At the acquisition date, Stanford’s total fair value,
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000. Calvin Co. has one recorded asset, a specialized production machine with a book value of $10,000 and
Parker, Inc., acquires 70 percent of Sawyer Company for $420,000. The remaining 30 percent of Sawyer’s outstanding shares continue to trade at a collective value of $174,000. On the acquisition
On January 1, 2020, Palka, Inc., acquired 70 percent of the outstanding shares of Sellinger Company for $1,141,000 in cash. The price paid was proportionate to Sellinger’s total fair value,
On January 1, Patterson Corporation acquired 80 percent of the 100,000 outstanding voting shares of Soriano, Inc., in exchange for $31.25 per share cash. The remaining 20 percent of Soriano’s
On January 1, 2021, Johnsonville Enterprises, Inc., acquired 80 percent of Stayer Company’s outstanding common shares in exchange for $3,000,000 cash. The price paid for the 80 percent ownership
On January 1, 2020, Harrison, Inc., acquired 90 percent of Starr Company in exchange for $1,125,000 fair-value consideration. The total fair value of Starr Company was assessed at $1,200,000.
On January 1, 2021, Ackerman Company acquires 80% of Seidel Company for $1,712,000 in cash consideration. The remaining 20 percent noncontrolling interest shares had an acquisition-date estimated
In 2021, assuming K-Tech has declared no dividends, what are the noncontrolling interest’s share of the subsidiary’s income and the ending balance of the noncontrolling interest in the
What is the 2021 consolidated net income before allocation to the controlling and noncontrolling interests?a. $400,000b. $486,000c. $491,600d. $500,000On January 1, 2020, French Company acquired 60
What amount is reported for trademarks in the 2021 consolidated balance sheet?a. $508,000b. $514,000c. $520,000d. $540,000On January 1, 2020, French Company acquired 60 percent of K-Tech Company for
Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amie’s shares on January 1, 2018, for $120,000 when Amie’s net assets had a total fair
Assuming that Pride, in its internal records, accounts for its investment in Star using the equity method, what amount of retained earnings would Pride report on its January 1, 2021, consolidated
What is consolidated net income for 2021?a. $194,000b. $197,500c. $203,000d. $238,000On January 1, 2019, Pride Corporation purchased 90 percent of the outstanding voting shares of Star, Inc., for
On January 1, 2020, Chamberlain Corporation pays $388,000 for a 60 percent ownership in Neville. Annual excess fair-value amortization of $15,000 results from the acquisition. On December 31, 2021,
On January 1, 2020, Grand Haven, Inc., reports net assets of $760,000 although equipment (with a four-year remaining life) having a book value of $440,000 is worth $500,000 and an unrecorded patent
Duke Corporation owns a 70 percent equity interest in Salem Company, a subsidiary corporation.During the current year, a portion of this stock is sold to an outside party. Before recording this
How is the noncontrolling interest in a subsidiary company calculated as of the end of a reporting period?
On January 1, 2020, Hi-Speed.com acquired 100 percent of the common stock of Wi-Free Co. for cash of $730,000. The consideration transferred was allocated among Wi-Free’s net assets as follows:At
On January 1, 2020, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech’s fair value was allocated among
In 2018, CVS Health Corporation reported a $6.1 billion charge for the impairment of goodwill in one of its reporting units (segments) in its 10-K annual report. Referring to CVS Health’s 2018
Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, Inc., on January 1, 2021, in exchange for $9,000,000 in cash. At the acquisition date, Eddy Tech’s
On January 1, Palisades, Inc., acquired 100 percent of Sherwood Company’s common stock for a fair value of $120,000,000 in cash and stock. The carrying amounts of Sherwood’s assets and
On January 1, 2020, Procise Corporation acquired 100 percent of the outstanding voting stock of GaugeRite Corporation for $1,980,000 cash. On the acquisition date, GaugeRite had the following balance
Tyler Company acquired all of Jasmine Company’s outstanding stock on January 1, 2019, for $206,000 in cash. Jasmine had a book value of only $140,000 on that date. However, equipment (having an
Allen Company acquired 100 percent of Bradford Company’s voting stock on January 1, 2017, by issuing 10,000 shares of its $10 par value common stock (having a fair value of $14 per share). As of
Branson paid $465,000 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $340,000 (common stock of $200,000 and
On January 1, 2021, Brooks Corporation exchanged $1,183,000 fair-value consideration for all of the outstanding voting stock of Chandler, Inc. At the acquisition date, Chandler had a book value equal
The following are selected accounts and balances for Mergaronite Company and Hill, Inc., as of December 31, 2021. Several of Mergaronite’s accounts have been omitted. Credit balances are indicated
On January 1, 2020, Pinnacle Corporation exchanged $3,200,000 cash for 100 percent of the outstanding voting stock of Strata Corporation. On the acquisition date, Strata had the following balance
Giant acquired all of Small’s common stock on January 1, 2017, in exchange for cash of $770,000. On that day, Small reported common stock of $170,000 and retained earnings of $400,000. At the
Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2021 (credit balances indicated by parentheses). Michael acquired all of Aaron’s outstanding
On January 1, 2020, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,030,000 in cash and securities. On the acquisition date, Stylene had the
On January 3, 2019, Persoff Corporation acquired all of the outstanding voting stock of Sea Cliff, Inc., in exchange for $6,000,000 in cash. Persoff elected to exercise control over Sea Cliff as a
Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2020, in exchange for $5,875,000 in cash. Allison intends to maintain Mathias as a wholly owned
Foxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1, 2019, for $600,000 cash. Greenburg’s accounting records showed net assets on that date of $470,000, although
Showing 800 - 900
of 1393
1
2
3
4
5
6
7
8
9
10
11
12
13
14