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c. How does the partial equity method differ from the equity method? a. Under the partial...
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...
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...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 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 for a building that it feels is...
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...
1.Under the acquisition method, when are most identifiable assets acquired, liabilities assumed, and non-controlling interests in...
1.Under the acquisition method, when are most identifiable assets acquired, liabilities assumed, and non-controlling interests in the acquiree recognized? Select one: a. When an acquirer is identified b. Acquisition date c. Date of verbal agreement d. 90 days after acquisition date 2.Which of the following is not an example of a transaction cost? Select one: a. Finder's fee b. Investigatory costs c. Depreciation costs d. Facilitatory costs 3.Which of the following is not a step for acquiring a subsidiary? Select...
10% Ownership 3. Under which method of accounting used by the parent prior to consolidation will...
10% Ownership 3. Under which method of accounting used by the parent prior to consolidation will the parent's net income equal the consolidated net income? a. Equity Method b. Partial Equity Method c. Initial Value Method d. Fair Value Method 4. Under the equity method, the investor should account for Income from Discontinued Operations from the investees with: a. A footnote disclosure only b. The ordinary income from the investee c. With its Income from discontinued operations d. An adjustment...
Parent Ltd. purchased 100% of the shares of Subsidiary Inc. for $150,000. At the date of...
Parent Ltd. purchased 100% of the shares of Subsidiary Inc. for $150,000. At the date of acquisition, the following information is provided below: Total assets shown on balance sheet of S Inc. Total liabilities shown on balance sheet of S Inc Goodwill shown on S Inc. balance sheet included in assets above Excess of fair value over carrying amount of S Inc. land Total assets of parent including the investment in Subsidiary Inc. Total liabilities of parent $144,000 24,000 7,500...
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...
Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent c...
Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company acquired a subsidiary on January 1, 2010. The purchase price was 500,000 million in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date and that excess was assigned to the following AAP assets Original Original Useful Amount Life (years) AAP Asset Property, plant and equipment (PPE), net Customer list Royalty agreement Goodwill $100,000 185,000 115,000 100,000 $500,000 20 indefinite The AAP...
On July 1, 2012, an acquiring company Corp. paid $1,100,000 for 100% of the outstanding common...
On July 1, 2012, an acquiring company Corp. paid $1,100,000 for 100% of the outstanding common stock of an investee company in a transaction that qualifies as a business combination. Immediately preceding the transaction, the investee company had the following condensed balance sheet: Pre-acquisition amounts reported on investee's balance sheet Current assets $150,000 Property and equipment, net 1,400,000 Liabilities 750,000 Equity 800,000 The acquisition-date fair value of the property and equipment was $220,000 more than its carrying amount. For all...
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...
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...
Determining ending balances of accounts on the consolidated balance sheet Assume that the parent company acquires its subsidiary by exchanging 55,000 shares of its Common Stock, with a market value on the acquisition date of $40 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 for a building that it feels is...
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...
10% Ownership 3. Under which method of accounting used by the parent prior to consolidation will the parent's net income equal the consolidated net income? a. Equity Method b. Partial Equity Method c. Initial Value Method d. Fair Value Method 4. Under the equity method, the investor should account for Income from Discontinued Operations from the investees with: a. A footnote disclosure only b. The ordinary income from the investee c. With its Income from discontinued operations d. An adjustment...
Parent Ltd. purchased 100% of the shares of Subsidiary Inc. for $150,000. At the date of acquisition, the following information is provided below: Total assets shown on balance sheet of S Inc. Total liabilities shown on balance sheet of S Inc Goodwill shown on S Inc. balance sheet included in assets above Excess of fair value over carrying amount of S Inc. land Total assets of parent including the investment in Subsidiary Inc. Total liabilities of parent $144,000 24,000 7,500...
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...
Consolidation spreadsheet for continuous sale of inventory - Equity method Assume that a parent company acquired a subsidiary on January 1, 2010. The purchase price was 500,000 million in excess of the subsidiary's book value of Stockholders' Equity on the acquisition date and that excess was assigned to the following AAP assets Original Original Useful Amount Life (years) AAP Asset Property, plant and equipment (PPE), net Customer list Royalty agreement Goodwill $100,000 185,000 115,000 100,000 $500,000 20 indefinite The AAP...
On July 1, 2012, an acquiring company Corp. paid $1,100,000 for 100% of the outstanding common stock of an investee company in a transaction that qualifies as a business combination. Immediately preceding the transaction, the investee company had the following condensed balance sheet: Pre-acquisition amounts reported on investee's balance sheet Current assets $150,000 Property and equipment, net 1,400,000 Liabilities 750,000 Equity 800,000 The acquisition-date fair value of the property and equipment was $220,000 more than its carrying amount. For all...
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