REFERENCE: 04-01 When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned...

    

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REFERENCE: 04-01 When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. REFER TO: 04-01 23. What amount should have been reported for the land in a consolidated balance sheet at the acquisition date? A) $ 52,500. B) $ 70,000. C) $ 75,000. D) $ 92,500. E) $100,000. REFER TO: 04-01 24. What is the total amount of excess land allocation at the acquisition date? A) $ 0. B) $30,000. C) $22,500. D) $25,000. E) $17,500. REFER TO: 04-01 25. What is the amount of excess land allocation attributed to the controlling interest at the acquisition date? A) $ 0. B) $30,000. C) $22,500. D) $25,000. E) $17,500. REFER TO: 04-01 26. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date? A) $ 0. B) $30,000. C) $22,500. D) $ 7,500. E) $17,500. 27. Where should a noncontrolling interest appear on a consolidated balance sheet? 28. On November 8, 2018, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized? A) Proportionately over a designated period of years. B) When Wood Co. sells the land to a third party. C) No gain may be recognized. D) As Wood uses the land. E) When Wood Co. begins using the land productively. REFERENCE: 04-01 When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. REFER TO: 04-01 23. What amount should have been reported for the land in a consolidated balance sheet at the acquisition date? A) $ 52,500. B) $ 70,000. C) $ 75,000. D) $ 92,500. E) $100,000. REFER TO: 04-01 24. What is the total amount of excess land allocation at the acquisition date? A) $ 0. B) $30,000. C) $22,500. D) $25,000. E) $17,500. REFER TO: 04-01 25. What is the amount of excess land allocation attributed to the controlling interest at the acquisition date? A) $ 0. B) $30,000. C) $22,500. D) $25,000. E) $17,500. REFER TO: 04-01 26. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date? A) $ 0. B) $30,000. C) $22,500. D) $ 7,500. E) $17,500. 27. Where should a noncontrolling interest appear on a consolidated balance sheet? 28. On November 8, 2018, Power Corp. sold land to Wood Co., its wholly owned subsidiary. The land cost $61,500 and was sold to Wood for $89,000. For consolidated financial statement reporting purposes, when must the gain on the sale of the land be recognized? A) Proportionately over a designated period of years. B) When Wood Co. sells the land to a third party. C) No gain may be recognized. D) As Wood uses the land. E) When Wood Co. begins using the land productively.

Answer rating: 100% (QA)

23 Land reported on consolidated balance sheet at the acquisition date100000 Land reported on consol... View the full answer