Why do we need to eliminate the stockholders' equity account beginning balances and the book value...
Why do we need to eliminate the stockholders' equity account beginning balances and the book value component within the parent's investment account in the consolidated financial statement under equity method?
Homework Answers
Hi
Let me know in case you face any issue:
Add Answer to:
Why do we need to eliminate the stockholders' equity account
beginning balances and the book value...
1 Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2 Prepare entry A to...
1
Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2
Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
3
Prepare entry I to eliminate intra-entity income accrual for the
current year based on the parent's usage of the partial equity
method.
4
Prepare entry D to eliminate intra-entity dividend
transfers.
5
Prepare entry E.
6
Prepare entry *C.
7
Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained...
1. Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2. Prepare entry A to...
1. Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2. Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
3. Prepare entry I to eliminate intra-entity income accrual for
the current year based on the parent's usage of the partial equity
method.
4. Prepare entry D to eliminate intra-entity dividend
transfers.
5. Prepare entry E.
6. Prepare entry *C.
7. Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained...
In a consolidated worksheet, we sometimes need to adjust the beginning balance of the parent company's...
In a consolidated worksheet, we sometimes need to adjust the beginning balance of the parent company's retained earnings. Our textbook refers to this adjustment as *C. Which of the following statements about entry *C is false. Assume that both the parent and the subsidiary are profitable. a. If the parent company apples the equity method on its own books, then entry *C is not necessary. b. If the parent company applies the initial value method on its own books, then...
Determining ending consolidated balances in the second year following the acquisition—Equity method Assume a parent company...
Determining ending consolidated balances in the second
year following the acquisition—Equity
method
Assume a parent company acquired a subsidiary on January 1,
2015. The purchase price was $745,000
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:
37. Determining euding consolidated balances in the second year following the acquisition-Equity method Assume a parent company acquired a subsidiary on January 1, 2015. The purchase price was...
J. Retained earnlllg on-Equity e. Equity investment Assume that your company acquired a subsidiary on January...
J. Retained earnlllg on-Equity e. Equity investment Assume that your company acquired a subsidiary on January 1, 2013. The purchase price $1,463,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, 39. Determi method ining ending consolidated balances in the fourth year following the acquisition that excess was assigned to the following [A] assets: Original Original Amount Useful Life A] Asset .496,000 355,000 $ 612,000 12 years 8 years Indefinite $1,463,000 The [A] assets with...
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...
Determining ending consolidated balances in the third year following the acquisition-Equity method Assume that your company...
Determining ending consolidated balances in the third year following the acquisition-Equity method Assume that your company acquired a subsidiary on January 1, 2017. The purchase price was $1,000,000 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: Original Original [A] Asset Amount Useful Life Patent $700,000 10 years Goodwill 300,000 indefinite $1,000,000 The [A] assets with a useful life have been amortized as part of...
Questions: 1. Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2. Prepare entry A...
Questions:
1. Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2. Prepare entry A to recognize allocations attributed to fair
value of specific accounts at acquisition date with residual fair
value recognized as goodwill.
3. Prepare entry I to eliminate $122,500 income accrual for 2017
less $11,000 amortization recorded by parent using equity
method.
4. Prepare entry D to eliminate intra-entity dividend
transfers.
5. Prepare entry E to recognize current year amortization
expense.
6. Prepare entry S to...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $440,000. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/17 Adams $ 300,000 510,000 600,000 (200,000) (350,000) (860,000) Clay $ 220,000 0 390,000 (160,000) (150,000) (300,000) In 2017, Clay earns a net income of $55,000...
Prepare entry S to eliminate stockholders' equity accounts of subsidiary. 2 Prepare entry A to recognize...
Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2
Prepare entry A to recognize allocations determined above in
connection with acquisition-date fair values.
3
Prepare entry I to eliminate intra-entity dividend declarations
recorded by parent as income.
4
Prepare entry E to recognize 2017 amortization expense.
5
Prepare entry *C to convert parent company figures to equity
method by recognizing subsidiary's increase in book value for prior
year [$117,500 net income less $15,000 dividend declaration] and
excess amortizations...
1
Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2
Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
3
Prepare entry I to eliminate intra-entity income accrual for the
current year based on the parent's usage of the partial equity
method.
4
Prepare entry D to eliminate intra-entity dividend
transfers.
5
Prepare entry E.
6
Prepare entry *C.
7
Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained...
1. Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2. Prepare entry A to recognize goodwill portion of the original
acquisition fair value.
3. Prepare entry I to eliminate intra-entity income accrual for
the current year based on the parent's usage of the partial equity
method.
4. Prepare entry D to eliminate intra-entity dividend
transfers.
5. Prepare entry E.
6. Prepare entry *C.
7. Prepare entry S to eliminate beginning of year stockholders'
equity accounts of subsidiary—the retained...
In a consolidated worksheet, we sometimes need to adjust the beginning balance of the parent company's retained earnings. Our textbook refers to this adjustment as *C. Which of the following statements about entry *C is false. Assume that both the parent and the subsidiary are profitable. a. If the parent company apples the equity method on its own books, then entry *C is not necessary. b. If the parent company applies the initial value method on its own books, then...
Determining ending consolidated balances in the second
year following the acquisition—Equity
method
Assume a parent company acquired a subsidiary on January 1,
2015. The purchase price was $745,000
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:
37. Determining euding consolidated balances in the second year following the acquisition-Equity method Assume a parent company acquired a subsidiary on January 1, 2015. The purchase price was...
J. Retained earnlllg on-Equity e. Equity investment Assume that your company acquired a subsidiary on January 1, 2013. The purchase price $1,463,000 in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date, 39. Determi method ining ending consolidated balances in the fourth year following the acquisition that excess was assigned to the following [A] assets: Original Original Amount Useful Life A] Asset .496,000 355,000 $ 612,000 12 years 8 years Indefinite $1,463,000 The [A] assets with...
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...
Determining ending consolidated balances in the third year following the acquisition-Equity method Assume that your company acquired a subsidiary on January 1, 2017. The purchase price was $1,000,000 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: Original Original [A] Asset Amount Useful Life Patent $700,000 10 years Goodwill 300,000 indefinite $1,000,000 The [A] assets with a useful life have been amortized as part of...
Questions:
1. Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2. Prepare entry A to recognize allocations attributed to fair
value of specific accounts at acquisition date with residual fair
value recognized as goodwill.
3. Prepare entry I to eliminate $122,500 income accrual for 2017
less $11,000 amortization recorded by parent using equity
method.
4. Prepare entry D to eliminate intra-entity dividend
transfers.
5. Prepare entry E to recognize current year amortization
expense.
6. Prepare entry S to...
Adams, Inc., acquires Clay Corporation on January 1, 2017, in exchange for $510,000 cash. Immediately after the acquisition, the two companies have the following account balances. Clay's equipment (with a five-year remaining life) is actually worth $440,000. Credit balances are indicated by parentheses. Current assets Investment in Clay Equipment Liabilities Common stock Retained earnings, 1/1/17 Adams $ 300,000 510,000 600,000 (200,000) (350,000) (860,000) Clay $ 220,000 0 390,000 (160,000) (150,000) (300,000) In 2017, Clay earns a net income of $55,000...
Prepare entry S to eliminate stockholders' equity accounts of
subsidiary.
2
Prepare entry A to recognize allocations determined above in
connection with acquisition-date fair values.
3
Prepare entry I to eliminate intra-entity dividend declarations
recorded by parent as income.
4
Prepare entry E to recognize 2017 amortization expense.
5
Prepare entry *C to convert parent company figures to equity
method by recognizing subsidiary's increase in book value for prior
year [$117,500 net income less $15,000 dividend declaration] and
excess amortizations...
Most questions answered within 3 hours.
-
Here is a pair of aromatic compounds that each have a complicated
set of aromatic peaks....
asked 16 minutes ago -
As with many public goods, determining the appropriate level of
government support for the production of...
asked 19 minutes ago -
Write a balanced chemical equation for the oxidation reaction
between Caro’s acid (H2SO5) and CN– ion...
asked 22 minutes ago -
Calculate the number of valence electrons for
[Mo(C6H6)(CO)3]
asked 32 minutes ago -
Which of the following are true about the strength of the
association between two variables?
1-...
asked 29 minutes ago -
You are a monopolist and know that your consumers have a linear
demand curve. At what...
asked 28 minutes ago -
Raising a heavy load requires work. Raising it in half the time
requires:
asked 34 minutes ago -
MGT-201: Marketing Management
Before deciding on the structure of the channel marketers must
take several factors...
asked 34 minutes ago -
1. ACLs allow a router to control traffic within a network. The
concept is very similar...
asked 36 minutes ago -
35. When the electron in a hydrogen atom falls from its first
excited energy level to...
asked 37 minutes ago -
A man is dragging a box of mass "m" by using a rope which rests
on...
asked 53 minutes ago -
Liquid octane
(CH3(CH2)6CH3) will
react with gaseous oxygen (O2) to produce gaseous carbon
dioxide (CO2) and...
asked 55 minutes ago