in a stock acquisition accounted for by the equity method, will there always be goodwill? Does...
Homework Answers
The answer is attached in below picture
If you have any doubts, please send me a comment before rating my answer and i will clarify the doubt
Thanks
Add Answer to:
in
a stock acquisition accounted for by the equity method, will there
always be goodwill? Does...
In a stock acquisition accounted for by the equity method, a portion of the purchase price...
In a stock acquisition accounted for by the equity method, a portion of the purchase price often is attributed to goodwill or to specific assets or liabilities. how are these amounts determined at aquisition? how are these amounts accounted for in subsequent periods?
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume ...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $620,800. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that the parent believes is worth $50,000 more than its book value, an: unrecorded Patent that the parent valued...
c. How does the partial equity method differ from the equity method? a. Under the partial...
c. How does the partial equity method differ from the equity method? a. Under the partial equity method, the balance in the investment account is not decreased by amortization on allocations made in the acquisition of the subsidiary b. In the total assets reported on the consolidated balance sheet In the treatment of dividends d. In the total liabilities reported on the consolidated balance sheet In a business combination when the fair value of the assets and liabilities assumed exceed...
Q20 In a business combination that is accounted for under the acquisition method, the entity that...
Q20 In a business combination that is accounted for under the acquisition method, the entity that obtains control over one or more businesses and establishes the acquisition date that control was achieved is called the Controller. Acquirer. Proprietor. Controlling interest.
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume a parent...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $924,000. The excess of the total fair value of the controlling and noncontrolling Interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building in PPE, net) that is worth $88,000 more than its book value, an unrecorded patent with a fair value of $144,000, and Goodwill...
Please show all work. E5.7 Goodwill, Equity Method, Eliminating Entries. First Year (see related E4.3) On January G...
Please show all work.
E5.7 Goodwill, Equity Method, Eliminating Entries. First Year (see related E4.3) On January Goodw ZU20, Playtel Inc, acquired 75 percent of the stock of San Jose Cable for $200 million in cash. At of acquisition, the fair value of the noncontrolling interest was $50 million, and Playtel's Shalen equity accounts were as follows (in thousands): Common stock, $1 par....... Additional paid-in capital..... Retained deficit ......... Treasury stock ................... Total ................ $ 5,000 25,000 (1,000) (800) $28,200...
Q27 Under the acquisition method of accounting for a business combination, goodwill is equal to The...
Q27 Under the acquisition method of accounting for a business combination, goodwill is equal to The acquired company's ability to generate excess profits. The excess of the cost of the acquisition plus the fair value of the noncontrolling interest over the fair value of the acquiree's net assets. The excess of the cost of the acquisition over the fair value of the acquiree's net assets. The excess of the fair value of acquiree's net assets over the cost of acquisition.
1. Is the allocation of acquisition cost to goodwill subjective? Discuss. 2. How does the allocation...
1. Is the allocation of acquisition cost to goodwill subjective? Discuss. 2. How does the allocation of acquisition cost to goodwill affect profit and cash flows in subsequent years? For your critical analysis, you could compare the effect of the accounting treatment of goodwill in subsequent years with the effect of the accounting treatment of property, plant and equipment (or intangibles with finite useful lives) in subsequent years.
E4.5 Help Please! Thank you! Acquisition Cost, Equity Method, Eliminating Entries, Second Year Peak Entertainment LO...
E4.5 Help Please! Thank you!
Acquisition Cost, Equity Method, Eliminating Entries, Second Year Peak Entertainment LO acquires all of the stock of Saddlestone Inc. on January 1,2020. In preparing to consolidate the trial bal- ances of Peak and Saddlestone at December 31, 2021 (two years after the acquisition), you assemble the following information Date-of-acquisition information: Value of stock given up to acquire Saddlestone: $20,000,000 Direct merger costs: $250,000 Saddlestone's shareholders' equity: $7,200,000, consisting of capital stock, $2,000,000; retained earn- ings,...
E4.5 Acquisition Cost, Equity Method, Eliminating Entries, Second Year Peak Entertainment LO 1, 2, 4 acquires...
E4.5 Acquisition Cost, Equity Method, Eliminating Entries, Second Year Peak Entertainment LO 1, 2, 4 acquires all of the stock of Saddlestone Inc. on January 1, 2020. In preparing to consolidate the trial bal- ances of Peak and Saddlestone at December 31, 2021 (two years after the acquisition), you assemble the following information: Date-of-acquisition information: • Value of stock given up to acquire Saddlestone: $20,000,000. • Direct merger costs: $250,000. • Saddlestone's shareholders' equity: $7,200,000, consisting of capital stock, $2,000,000;...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume that a parent company acquires an 80% interest in its subsidiary for a purchase price of $620,800. The excess of the total fair value of the controlling and noncontrolling interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building (in PPE, net) that the parent believes is worth $50,000 more than its book value, an: unrecorded Patent that the parent valued...
c. How does the partial equity method differ from the equity method? a. Under the partial equity method, the balance in the investment account is not decreased by amortization on allocations made in the acquisition of the subsidiary b. In the total assets reported on the consolidated balance sheet In the treatment of dividends d. In the total liabilities reported on the consolidated balance sheet In a business combination when the fair value of the assets and liabilities assumed exceed...
Consolidation on date of acquisition - Equity method with noncontrolling interest and AAP Assume a parent company acquires a 75% interest in its subsidiary for a purchase price of $924,000. The excess of the total fair value of the controlling and noncontrolling Interests over the book value of the subsidiary's Stockholders' Equity is assigned to a building in PPE, net) that is worth $88,000 more than its book value, an unrecorded patent with a fair value of $144,000, and Goodwill...
Please show all work.
E5.7 Goodwill, Equity Method, Eliminating Entries. First Year (see related E4.3) On January Goodw ZU20, Playtel Inc, acquired 75 percent of the stock of San Jose Cable for $200 million in cash. At of acquisition, the fair value of the noncontrolling interest was $50 million, and Playtel's Shalen equity accounts were as follows (in thousands): Common stock, $1 par....... Additional paid-in capital..... Retained deficit ......... Treasury stock ................... Total ................ $ 5,000 25,000 (1,000) (800) $28,200...
E4.5 Help Please! Thank you!
Acquisition Cost, Equity Method, Eliminating Entries, Second Year Peak Entertainment LO acquires all of the stock of Saddlestone Inc. on January 1,2020. In preparing to consolidate the trial bal- ances of Peak and Saddlestone at December 31, 2021 (two years after the acquisition), you assemble the following information Date-of-acquisition information: Value of stock given up to acquire Saddlestone: $20,000,000 Direct merger costs: $250,000 Saddlestone's shareholders' equity: $7,200,000, consisting of capital stock, $2,000,000; retained earn- ings,...
E4.5 Acquisition Cost, Equity Method, Eliminating Entries, Second Year Peak Entertainment LO 1, 2, 4 acquires all of the stock of Saddlestone Inc. on January 1, 2020. In preparing to consolidate the trial bal- ances of Peak and Saddlestone at December 31, 2021 (two years after the acquisition), you assemble the following information: Date-of-acquisition information: • Value of stock given up to acquire Saddlestone: $20,000,000. • Direct merger costs: $250,000. • Saddlestone's shareholders' equity: $7,200,000, consisting of capital stock, $2,000,000;...
Most questions answered within 3 hours.
-
What is the % w/v when 80 mL of a 2.0% solution is mixed with 50...
asked 1 minute ago -
How can I solve the following using a TI83
Claim: Most adults would erase all of...
asked 14 minutes ago -
Analysis of 3-ethyl-3-buten-2-ol gave C, 72.13%; H, 11.92%.
Calculate the percent deviation of these results from...
asked 11 minutes ago -
Which VALS segment is most likely to have a top of the line
brand new (2015)...
asked 15 minutes ago -
Write a program to score the paper-rock-scissor game. Each of
two users types in either P,R...
asked 35 minutes ago -
Calculate the equillibrium constent K for a redox reaction that
has E°cell = -.98 V at...
asked 47 minutes ago -
A concave spherical mirror has a radius of curvature of
magnitude 19.6 cm.
(a) Find the...
asked 48 minutes ago -
3. draw a diagram of the magnetic field:
a. around a long straight wire with a...
asked 47 minutes ago -
If you titrated 30.0 mL of 0.1 M HCl with 0.1 M NaOH, indicate
the approximate...
asked 55 minutes ago -
NADH passes electrons into the electron transport chain. List
the carriers that would receive the electrons,...
asked 1 hour ago -
A cylindrical cable with a resistivity of 1.6x10-8 Ω·m and cross
sectional area of 3x10-5 m^2...
asked 1 hour ago -
True or False.
A consumer with convex preferences who is indifferent between
the bundles (5,2) and...
asked 1 hour ago