During the consolidation process, the Income in Subsidiary account on the parent's income statement is eliminated....
During the consolidation process, the Income in Subsidiary account on the parent's income statement is eliminated. It is replaced with (read all choices and select the most complete answer):
Group of answer choices
Subsidiary's assets and liabilities.
Subsidiary equity
Subsidiary revenues, expenses, and annual amortization expenses related to fair market value allocations.
Subsidiary dividends
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During the consolidation process, the Income in Subsidiary
account on the parent's income statement is eliminated....
Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and ...
Consolidation subsequent to date of acquisition - Equity method with noncontrolling interest and AAP Assume that, on January 1, 2009, a parent company acquired an 80% interest in its subsidiary. The total fair value of the controlling and noncontrolling interests was $500,000 over the book value of the subsidiary’s Stockholders’ Equity on the acquisition date. The parent assigned the excess to the following [A] assets: [A] Asset Initial Fair Value Useful Life (years) [A] Asset Initial Fair Value Useful Life...
Subsidiary 46. Prepare consolidation spreadsheet for intercompany sale of land-Equity method LOS Assume a parent company...
Subsidiary 46. Prepare consolidation spreadsheet for intercompany sale of land-Equity method LOS Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. X of that excess, $180,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that...
Consolidation at date of acquisition (purchase price greater than book value, acquisition journal entries Assume that the parent company acquires its subsidiary by exchanging 84,000 shares of its $2 par value Common Stock, with a fair value on the acquisition date of $41 per share, for all of the outstanding voting shares of the investee. In its analysis of the investee company, the parent values all of the subsidiary’s assets and liabilities at an amount equaling their book values except...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $300,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
Assume the following information: The purchase price for the subsidiary included an AAP asset relating to...
Assume the following information: The purchase price for the subsidiary included an AAP asset relating to a Patent that the parent estimated was worth BRL300,000 more than its book value on the subsidiary's balance sheet. The Patent is being amortized at the rate of BRL30,000 per year and the BOY book value of the Patent is BRL270,000. 1. Compute the balance of the Equity Investment account of $1,593,111 on the parent's balance sheet. Use a negative sign with answers that...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a paren...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 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 Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
Prepare consolidation spreadsheet for intercompany sale of land - Equity Method Assume a parent company acquired...
Prepare consolidation spreadsheet for intercompany sale of land - Equity Method Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $180,000 was assigned to an unrecorded patent owned by the subsidiary that is being amortized over a 10 year period. The [A] Patent asset has been amortized as part of the parent's equity...
200 Chapter 41 Consolidated PROBLEMS base price was date, and that was LO 19. Consolidation spreadsheet...
200 Chapter 41 Consolidated PROBLEMS base price was date, and that was LO 19. Consolidation spreadsheet for continuous cale of inventory-Equity method Assume a parent company acquired a subsidiary on January 1, 2016. The purchas i n excess of the subsidiary's book value of Stockholders' Equity on the acquisition was assigned to the following AAP assets: X Original Amount Original Use Line . $120.000 210.000 150.000 120,000 $600,000 AAP Asset Property, plant and equipment (PPE), net . Customer list... Royalty...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired i...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2014, at a purchase price that was $300,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $200,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity...
Assume that on January 1, 2018, a parent company acquired an 85% interest in a subsidiary's...
Assume that on January 1, 2018, a parent company acquired an 85% interest in a subsidiary's voting common stock. On the date of acquisition, the fair-value of the subsidiary's net assets equaled their reported book values except for machinery and equipment, which had a fair value of $780,000 and a reported book value of $325,000. the machinery and equipment had a 5-year remaining useful life and no salvage value. The following are the highly summarized pre-consolidation income statements of the...
Subsidiary 46. Prepare consolidation spreadsheet for intercompany sale of land-Equity method LOS Assume a parent company acquired its subsidiary on January 1, 2017, at a purchase price that was $270,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. X of that excess, $180,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's...
Preparing a consolidated income statement-Cost method with noncontrolling interest, AAP and upstream and downstream intercompany inventory profits A parent company purchased a 70% controlling interest in its subsidiary several years ago. The aggregate fair value of the controlling and noncontrolling interest was $300,000 in excess of the subsidiary's Stockholders' Equity on the acquisition date. This excess was assigned to a building that was estimated to be undervalued by $180,000 and to an unrecorded Trademark valued at $120,000. The building asset...
Assume the following information: The purchase price for the subsidiary included an AAP asset relating to a Patent that the parent estimated was worth BRL300,000 more than its book value on the subsidiary's balance sheet. The Patent is being amortized at the rate of BRL30,000 per year and the BOY book value of the Patent is BRL270,000. 1. Compute the balance of the Equity Investment account of $1,593,111 on the parent's balance sheet. Use a negative sign with answers that...
Inferring consolidation entries from consolidated financial statements-Cost method Assume a parent company acquired a subsidiary on January 1, 2012. The purchase price was $1,362,000 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 Property, plant and equipment (PPE), net Patent Goodwill Original Amount Original Useful Life 20 years 12 years Indefinite $300,000 432,000 630,000 $1,362,000 The parent company uses the cost method of...
200 Chapter 41 Consolidated PROBLEMS base price was date, and that was LO 19. Consolidation spreadsheet for continuous cale of inventory-Equity method Assume a parent company acquired a subsidiary on January 1, 2016. The purchas i n excess of the subsidiary's book value of Stockholders' Equity on the acquisition was assigned to the following AAP assets: X Original Amount Original Use Line . $120.000 210.000 150.000 120,000 $600,000 AAP Asset Property, plant and equipment (PPE), net . Customer list... Royalty...
Prepare consolidation spreadsheet for intercompany sale of land - Equity method Assume that a parent company acquired its subsidiary on January 1, 2014, at a purchase price that was $300,000 in excess of the book value of the subsidiary's Stockholders' Equity on the acquisition date. Of that excess, $200,000 was assigned to an unrecorded Patent owned by the subsidiary that is being amortized over a 10-year period. The [A] Patent asset has been amortized as part of the parent's equity...
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