Homework Answers
| In years subsequent to the year of acquisition, an entry to establish reciprocity is made under the cost method. |
| The workpaper entry to establish reciprocity under Cost method includes credit to Retained Earnings of Parent Company. |
| Option B cost method is correct |
Add Answer to:
QUESTION 11 In years subsequent to the year of acquisition, an entry to establish reciprocity is...
question 8 CHAPTER 5 Consolidation Subsequent to Acquisition Done LOS "Under the equity met acquisition earnings...
question 8
CHAPTER 5 Consolidation Subsequent to Acquisition Done LOS "Under the equity met acquisition earnings computed mit method, the investment account is adjusted for the investor's share of post- nings computed by the consolidation method." Explain this statement. the narent's investment account had an anity method halance of $120.000. At
QUESTION 12 Dividends declared by a subsidiary are eliminated against dividend income recorded by the parent...
QUESTION 12 Dividends declared by a subsidiary are eliminated against dividend income recorded by the parent under the a. partial equity method. b. equity method. C. cost method. d. equity and partial equity methods.
Consolidation at the end of the first year subsequent to date of acquisition—Cost method (purchase price...
Consolidation at the end of the first year subsequent to date of acquisition—Cost method (purchase price equals book value) Assume that the parent company acquires its subsidiary on January 1, 2016, by exchanging 31,500 shares of its $1 par value Common Stock, with a market value on the acquisition date of $50 per share, for all of the outstanding voting shares of the acquiree. You have been charged with preparing the consolidation of these two companies at the end of...
Consolidation several years subsequent to date of acquisition—Equity method Assume that a parent company acquired a...
Consolidation several years subsequent to date of acquisition—Equity method Assume that a parent company acquired a subsidiary on January 1, 2014. The purchase price was $715,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original Amount Original Useful Life Property, plant and equipment (PPE), net $140,000 16 years Patent 245,000 7 years License 105,000 10 years Goodwill 225,000 Indefinite $715,000 The [A]...
SHOW work a. Prepare the journal entry to record the acquisition of the investments. b. Prepare...
SHOW work a. Prepare the journal entry to record the acquisition of the investments. b. Prepare the journal entry to record the end of Year 1 fair value adjustment. c. Assume that Wildwing sells 19,100 ALP Company shares for $12 per share at the beginning of Year 2. Prepare the journal entry required to record the sale. Wildwing does not correct the fair value adjustment account at this time. d. Prepare the journal entry to record the end of Year...
How does the complete equity method, used to facilitate consolidation in subsequent years, differ from the...
How does the complete equity method, used to facilitate consolidation in subsequent years, differ from the equity method used for external reporting? a. The complete equity method adjusts reported income for impairment losses on previously unreported intangible assets, while the equity method used for external reporting does not. b. The complete equity method deducts unconfirmed profits on upstream sales to the extent of ownership interests, while the equity method used for external reporting deducts all unconfirmed profits on upstream sales. c. The complete...
Tasks: Prepare entry A to recognize goodwill portion of the original acquisition fair value. Prepare entry...
Tasks:
Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
Prepare entry I to eliminate intra-entity income accrual for the
current year based on the parent's usage of the partial equity
method
Prepare entry D to eliminate intra-entity dividend transfers
Prepare entry E
Prepare entry *C.
Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained earnings balance has
been adjusted for 2017 income and dividends
Prepare entry A to recognize original...
looking for help on question 2 a-h. Questions 1. CCES Corporation acquires a controlling interest in...
looking for help on question 2 a-h.
Questions 1. CCES Corporation acquires a controlling interest in Schmaling, Inc. CCES may utilize any one of three methods to internally account for this investment. Deseribe ench of these methods, and indicate their advantages and disadvantages. 2. Maguire Company obtains 100 percent control over Williams Company. Several years after the takeover, consolidated financial statements are being produced. For each of the following accounts, briefly describe the values that should be included in consolidated...
Consolidation several years subsequent to date of acquisition—Equity method Assume a parent company acquired a subsidiary...
Consolidation several years subsequent to date of acquisition—Equity method Assume a parent company acquired a subsidiary on January 1, 2017. The purchase price was $820,000 in excess of the subsidiary’s book value of Stockholders’ Equity on the acquisition date, and that excess was assigned to the following [A] assets: [A] Asset Original Amount Original Useful Life Property, plant and equipment (PPE), net $240,000 12 years Patent 240,000 8 years License 160,000 10 years Goodwill 180,000 Indefinite $820,000 The [A] assets...
C. (1) ENTRY S (2) ENTRY A, (3) ENTRY I (4) ENTRY D (5) ENTRY E D. (1)...
C. (1) ENTRY S (2) ENTRY A, (3)
ENTRY I (4) ENTRY D (5) ENTRY E
D. (1) ENTRY C (2) ENTRY S, (3) ENTRY A (4) ENTRY I (5) ENTRY
E
Chapter 3 Homework A Saved Help 12.5 points Branson paid $512,300 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2017. On that date, the subsidiary had a book value of $343,000 (common stock of $200,000 and retained earnings of $143,000), although various unrecorded royalty...
question 8
CHAPTER 5 Consolidation Subsequent to Acquisition Done LOS "Under the equity met acquisition earnings computed mit method, the investment account is adjusted for the investor's share of post- nings computed by the consolidation method." Explain this statement. the narent's investment account had an anity method halance of $120.000. At
QUESTION 12 Dividends declared by a subsidiary are eliminated against dividend income recorded by the parent under the a. partial equity method. b. equity method. C. cost method. d. equity and partial equity methods.
SHOW work a. Prepare the journal entry to record the acquisition of the investments. b. Prepare the journal entry to record the end of Year 1 fair value adjustment. c. Assume that Wildwing sells 19,100 ALP Company shares for $12 per share at the beginning of Year 2. Prepare the journal entry required to record the sale. Wildwing does not correct the fair value adjustment account at this time. d. Prepare the journal entry to record the end of Year...
Tasks:
Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
Prepare entry I to eliminate intra-entity income accrual for the
current year based on the parent's usage of the partial equity
method
Prepare entry D to eliminate intra-entity dividend transfers
Prepare entry E
Prepare entry *C.
Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained earnings balance has
been adjusted for 2017 income and dividends
Prepare entry A to recognize original...
looking for help on question 2 a-h.
Questions 1. CCES Corporation acquires a controlling interest in Schmaling, Inc. CCES may utilize any one of three methods to internally account for this investment. Deseribe ench of these methods, and indicate their advantages and disadvantages. 2. Maguire Company obtains 100 percent control over Williams Company. Several years after the takeover, consolidated financial statements are being produced. For each of the following accounts, briefly describe the values that should be included in consolidated...
C. (1) ENTRY S (2) ENTRY A, (3)
ENTRY I (4) ENTRY D (5) ENTRY E
D. (1) ENTRY C (2) ENTRY S, (3) ENTRY A (4) ENTRY I (5) ENTRY
E
Chapter 3 Homework A Saved Help 12.5 points Branson paid $512,300 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2017. On that date, the subsidiary had a book value of $343,000 (common stock of $200,000 and retained earnings of $143,000), although various unrecorded royalty...
Most questions answered within 3 hours.
-
A mixture contains 5.432 g of
sand and 2.521 g of salt. What is the percentage...
asked 2 minutes ago -
A 8.62 -m ladder with a mass of 21.1 kg lies flat on the ground.
A...
asked 1 minute ago -
What problem would arise from this vanadium-based treatment over
the course of a lifetime in diabetes
asked 29 seconds ago -
Homework: Create a Class.... from scratch
Design , implement and test a class that can be...
asked 16 minutes ago -
A project has a service life of five years with the initial
investment outlay of $200,000....
asked 12 minutes ago -
Employee develop involves longer term training and opportunities
that while not immediately needed on a current...
asked 12 minutes ago -
Why is the reticulum the affected compartment of the
stomach?
Group of answer choices
It has...
asked 14 minutes ago -
(Print distinct numbers) C++
Write a program that reads in 10 numbers and displays distinct
numbers...
asked 14 minutes ago -
A 3.0275 g sample of KHP (a primary standard, 1:1 acid:base,
FM=204.23 g/mol) is titrated with...
asked 20 minutes ago -
1. You need to make an aqueous solution of
0.165 M barium acetate for an
experiment...
asked 20 minutes ago -
Let X be a discrete random variable with the following PMF.
Px(k) =
1/4 for k...
asked 24 minutes ago -
ONLY use the information provided here on the
firm's Mission Statement. Written assessment must include
(1)...
asked 33 minutes ago