Homework Answers
True
The statement is correct
While accounting the transaction related to subsidiary who retains its incorporation the direct combination cost is expensed as incurred where as issuance cost incurred is to be deducted from additional paid - in - capital
Add Answer to:
QUESTION 15 In a business combination where a subsidiary retains its incorporation direct combination costs are...
QUESTION 27 The primary difference between: (1) accounting for a business combination when the subsidiary is...
QUESTION 27 The primary difference between: (1) accounting for a business combination when the subsidiary is dissolved; and (1) accounting for a business combination when the subsidiary retains its incorporation is if the subsidiary retains its incorporation, the consolidation is not formally recorded in the accounting records of the acquiring company True. False.
W QUESTION 4 With a business combination, direct acquisition costs are A. capitalized and amortized over...
W QUESTION 4 With a business combination, direct acquisition costs are A. capitalized and amortized over a discretionary period. B. charged to retained earnings when incurred. C. expensed in the period incurred. D. considered a part of the total cost of the acquired company.
12. If a business is acquired for common stock, the business will be valued, in order...
12. If a business is acquired for common stock, the business will be valued, in order to determine the cost of the acquisition, based on the stock's market value on the closing date (rather than the announcement date) True False 13. Acquisition costs (e.g., investment banker's fees, legal fees) will be capitalized as part of the cost of the acquisition (rather than expensed as incurred) True False 14. Non controlling interests of a subsidiary acquired is classified as a liability...
12. If a business is acquired for common stock, the business will be valued, in order...
12. If a business is acquired for common stock, the business will be valued, in order to determine the cost of the acquisition, based on the stock's market value on the closing date (rather than the announcement date) False True 13. Acquisition costs (e.g., investment banker's fees, legal fees) will be capitalized as part of the cost of the acquisition (rather than expensed as incurred) False True 14. Non controlling interests of a subsidiary acquired is classified as a liability...
Flag question Marked out of 1.00 Nor yet answered Question 5 2. In a business combination,...
Flag question Marked out of 1.00 Nor yet answered Question 5 2. In a business combination, the direct costs of registering and issuing equity securities are: (CL#2) Select one: a. None of the above b. Charged against other paid-in capital of the combined entity Added to the parent/investor company's investment account d. Deducted from income in the period of combination
Savod Help Save & Exit Subm Pintime Industries Inc. entered into a business combination agreement with...
Savod Help Save & Exit Subm Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies Under the terms of the agreement, Pintime issued 180,300 shares of its $2 par common stock in exchange for all of SCC's assets and liabilities. The Pintime shares then were distributed to SCC's...
The financial statements for Jobe Inc. and Lake Corp., just prior to their combination, for the...
The financial statements for Jobe Inc. and Lake Corp., just prior to their combination, for the year ending December 31, 20X2, follow. Lake's buildings were undervalued on its financial records by $60,000. Jobe Inc. Lake Corp. Revenues $1,300,000 $500,000 Expenses (1,180,000) (290,000) Net income $120,000 $210,000 Retained earnings, January 1, 20X2 700,000 500,000 Net income (above) 120,000 210,000 Dividends paid (110,000) (110,000) Retained earnings, December 31, 20X2 $710,000 $600,000 Cash $160,000 $120,000 Receivables and inventory 240,000 240,000 Buildings (net) 700,000...
Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure...
Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies. Under the terms of the agreement, Pintime issued 181,100 shares of its $2 par common stock in exchange for all of SCC’s assets and liabilities. The Pintime shares then were distributed to SCC’s shareholders, and SCC was liquidated. Immediately...
1. Which of the following statements regarding a bu wing statements regarding a business combination is...
1. Which of the following statements regarding a bu wing statements regarding a business combination is wrong? B. Costs of registering equity se Osts of registering equity securities to be issued by the acquiring company are not expensed registering equity securities to be issued by the acquiring company do not affect the amount of goodwill to be recorded by the acquiring will to be recorded by the acquiring company. costs related to the business combination are expensed when incurred. company...
Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following...
Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders’ equity figures: Atkins Waterson Common stock ($1 par value) $ 184,000 $ 122,000 Additional paid-in capital 92,000 58,500 Retained earnings 317,000 120,000 Atkins issues 70,750 new shares of its common stock valued at $4 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively?
QUESTION 27 The primary difference between: (1) accounting for a business combination when the subsidiary is dissolved; and (1) accounting for a business combination when the subsidiary retains its incorporation is if the subsidiary retains its incorporation, the consolidation is not formally recorded in the accounting records of the acquiring company True. False.
W QUESTION 4 With a business combination, direct acquisition costs are A. capitalized and amortized over a discretionary period. B. charged to retained earnings when incurred. C. expensed in the period incurred. D. considered a part of the total cost of the acquired company.
12. If a business is acquired for common stock, the business will be valued, in order to determine the cost of the acquisition, based on the stock's market value on the closing date (rather than the announcement date) True False 13. Acquisition costs (e.g., investment banker's fees, legal fees) will be capitalized as part of the cost of the acquisition (rather than expensed as incurred) True False 14. Non controlling interests of a subsidiary acquired is classified as a liability...
12. If a business is acquired for common stock, the business will be valued, in order to determine the cost of the acquisition, based on the stock's market value on the closing date (rather than the announcement date) False True 13. Acquisition costs (e.g., investment banker's fees, legal fees) will be capitalized as part of the cost of the acquisition (rather than expensed as incurred) False True 14. Non controlling interests of a subsidiary acquired is classified as a liability...
Flag question Marked out of 1.00 Nor yet answered Question 5 2. In a business combination, the direct costs of registering and issuing equity securities are: (CL#2) Select one: a. None of the above b. Charged against other paid-in capital of the combined entity Added to the parent/investor company's investment account d. Deducted from income in the period of combination
Savod Help Save & Exit Subm Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation (SCC) to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies Under the terms of the agreement, Pintime issued 180,300 shares of its $2 par common stock in exchange for all of SCC's assets and liabilities. The Pintime shares then were distributed to SCC's...
1. Which of the following statements regarding a bu wing statements regarding a business combination is wrong? B. Costs of registering equity se Osts of registering equity securities to be issued by the acquiring company are not expensed registering equity securities to be issued by the acquiring company do not affect the amount of goodwill to be recorded by the acquiring will to be recorded by the acquiring company. costs related to the business combination are expensed when incurred. company...
Most questions answered within 3 hours.
-
Describe how to distinguish true motility from brownian motion
and fluid flow when viewing a wet...
asked 49 seconds ago -
A manufacturer of game controllers is concerned that its
controller may be difficult for left-handed users....
asked 3 minutes ago -
Water at gauge pressure of 3.8 atmospheres at street level
enters an office building at 0.60...
asked 16 minutes ago -
Quick question, I want to know how to convert decimal numbers to
binary number, when i...
asked 37 minutes ago -
You found out that now you are going to receive payments of
$8,500 for the next...
asked 41 minutes ago -
17.
Technician A says that leaking components are usually repaired
rather than replaced. Technician B says...
asked 42 minutes ago -
A) An Operon is:?
1- A gene that affect another gene
transcription.
2. A gene coding...
asked 48 minutes ago -
When opening a file, use this method to determine whether a file
exists before you attempt...
asked 53 minutes ago -
Sales total $300,000 when variable costs total $180,000 and
fixed costs are $60,000. Breakeven sales total:...
asked 1 hour ago -
1)
To calculate the depth of a water well, an explorer drops a stone and with...
asked 57 minutes ago -
0.429-g sample of gas occupies 125 mL at 60. cm of Hg and 25°C.
The molar...
asked 59 minutes ago -
The
pH of a 0.90M solution of boric acid (H3BO3) is measured to be
4.64.
Calculate...
asked 1 hour ago