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Study Resources (Accounting)

Exercises 1) Paice Corporation owns 80% of the voting common stock of Accardi Corporation. Paice owns 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost/book value/fair value differentials to consider. The separate net incomes (excluding investment income).
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11) Assume a company's preferred stock is cumulative with a call provision and has dividends in arrears. The amount of stockholders' equity allocated to preferred stockholders is equal to the number of shares outstanding times the A) sum of the par value per share plus any liquidation premium per share, plus.
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14) On January 1, 2011, Peabody Corporation acquired a 90% interest in Salisbury Company for $270,000 when Salisbury's stockholders' equity was $300,000; with Common stock $200,000 and Retained earnings $100,000. On January 1, 2011, Salisbury purchased a 10% interest in Peabody for $70,000 when Peabody's total stockholders' equity was $700,000; with.
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9) Pane Corporation owns 100% of Alder Corporation, 85% of Ball Corporation, 70% of Cake Corporation, 40% of Dash Corporation, and 10% of Eager Corporation. All of these corporations are domestic corporations. Pane, Alder and Ball belong to an affiliated group. Pane's marginal income tax rate is 35%. All investees.
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15) On January 1, 2011, Klode Corporation acquired an 80% interest in Savy Company for $400,000 when Savy's stockholders' equity was $500,000; with Common stock $400,000 and Retained earnings $100,000. On January 1, 2011, Savy purchased a 10% interest in Klode for $50,000 when Klode's total stockholders' equity was $500,000; with.
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6) Pandy Corporation owns a 90% interest in Sakaj Corporation's common stock. Throughout 2010, Sakaj had 20,000 shares of common stock outstanding and Pandy had 50,000 shares of common stock outstanding. Sakaj's only dilutive security consists of 10,000 stock options, with an exercise price of $20 per share. The average.
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9) Olson Corporation paid $62,000 to acquire 100% of Towing Corporation's outstanding voting common stock at book value on May 1, 2011. The stockholders' equity of Towing on January 1, 2011 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Towing's total dividends for 2011 were $6,000, paid equally on.
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6) At December 31, 2012 year-end, Lapwing Corporation's investment in Ground Inc. was $200,000 consisting of 80% of Ground's $250,000 stockholders' equity on that date. On April 1, 2013, Lapwing sold 20% interest (one-fourth of its holdings) in Ground for $65,000. During 2013, Ground had net income of $75,000(earned uniformly).
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10) Paradise Corporation owns 100% of Aldred Corporation, 90% of Balme Corporation, 80% of Calder Corporation, 75% of Dale Corporation, 20% of East Corporation, and 8% of Faber Corporation. Paradise, Aldred, Balme and Calder belong to an affiliated group. All of these corporations are domestic corporations. During 2011, Paradise Corporation.
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3) Samford Corporation's stockholders' equity on December 31, 2010 was as follows: 8% cumulative preferred stock, $100 par value, callable at $109, with two years of dividends in arrears$100,000 Common stock, $25 par value700,000 Additional paid-in capital250,000 Retained earnings400,000 Total stockholders' equity$1,450,000 On January 1, 2011, Panera Corporation purchased a 70% interest in Samford's common stock for $1,400,000..
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11) Controlling interest share of consolidated net income for the current year is A) $504,800. B) $516,800. C) $545,200. D) $557,200. 12) The amount of income for the current year assigned to the noncontrolling shareholders of Badock Corporation is A) $100,000. B) $104,000. C) $120,000. D) $140,000. 13) The amount of income for the current year assigned to the noncontrolling.
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14) On December 31, 2011, Pat Corporation has the following information available: Common stock, $10 par$100,000 Additional paid-in capital60,000 Retained earnings40,000 Total stockholders' equity$200,000 On December 31, 2011, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2011, the fair value of Pat's assets and liabilities are equal to the.
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Exercises 1) Saito Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears$10,000 Common stock, $1 par value50,000 Additional paid-in capital150,000 Retained earnings160,000 Total stockholders' equity$370,000 On January 1, 2011, Panata Corporation paid $300,000 for a 70% interest in Saito's common stock..
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11) Peter Corporation owns 90% of the common stock of Subsidiary Subway. The following data is available: PeterSubway Net income for 2011$150,000$50,000 Preferred dividends for 2011$10,000 Common dividends for 2011$15,000 Number of common shares outstanding 200,00020,000 10% Preferred Stock, $100 par$100,000 The preferred stock is cumulative and convertible. The annual preferred dividends are $10,000. Required: 1. Subway's preferred stock.
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13) At January 1, 2010, the stockholders' equity of Raven Corporation and its 60%-owned subsidiary, Trunk Corporation, are as follows: RavenTrunk Common stock, $10 par value$700,000$400,000 Retained earnings800,00050,000 Totals$1,500,000$450,000 Trunk's net income for 2010 was $40,000. No dividends were declared or paid in 2010. Raven's Investment in Trunk account balance on December 31, 2010 was.
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4) Packer Corporation owns 100% of Abel Corporation, Abel Corporation owns 95% of Bacon Corporation and Bacon Corporation owns 80% of Cab Corporation. The separate net incomes (excluding investment income) of Packer, Abel, Bacon, and Cab are $300,000, $100,000, $200,000, and $300,000, respectively. All of the investments were made at.
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12) Jeff Corporation owns 90% of the common stock of Subsidiary Jordan. The following data is available: JeffJordan Net income for 2011$250,000$150,000 Preferred dividends for 2011$20,000 Common dividends for 2011$25,000 Number of common shares outstanding 200,00020,000 10% Preferred Stock, $100 par$200,000 The preferred stock is cumulative and convertible. The annual preferred dividends are $20,000. Required: 1. Jordan's preferred stock.
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16) On December 31, 2011, Lorna Corporation has the following information available: Common stock, $10 par$200,000 Additional paid-in capital60,000 Retained earnings40,000 Total stockholders' equity$300,000 On December 31, 2011, Gerald Corporation buys an 80% interest in Lorna Corporation for $240,000. On December 31, 2011, the fair value of Lorna's assets and liabilities are equal to the.
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5) Pancino Corporation owns a 90% interest in Sakal Corporation's common stock. Throughout 2010, Sakal had 20,000 shares of common stock outstanding and Pancino had 50,000 shares of common stock outstanding. Sakal's only dilutive security consists of 2,500 stock options, with an exercise price of $20 per share. The average.
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8) Separate earnings and investment percentages for three affiliates for 2011 are as follows: SeparatePercentage InterestPercentage Interest Earnings       in Acres                    in Bain       Palace Company$450,00080% Acres Inc200,00070% Bain Corporation160,00010%   Assume the investments were acquired at a cost equal to the book value of each investment, which also equals the fair value. Separate earnings.
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9) Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud Corporation, and Bacud Corporation owns 10% of Abrams Corporation. The separate net incomes (excluding investment income) of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000, respectively. Assume the investments were acquired at a cost equal.
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3) At December 31, 2010, the stockholders' equity of Pearson Corporation and its 80%-owned subsidiary, Trompeter Corporation, are as follows: PearsonTrompeter Common stock, $10 par value$20,000$12,000 Retained earnings8,0006,000 Totals$28,000$18,000 Pearson's Investment in Trompeter is equal to 80 percent of Trompeter's book value. Trompeter Corporation issued 400 additional shares of common stock directly to Pearson on.
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7) Paine Corporation owns 90% of Achan Corporation, Achan Corporation owns 85% of Badge Corporation, and Badge Corporation owns 5% of Achan Corporation. The separate net incomes (excluding investment income) of Paine, Achan, and Badge are $400,000, $160,000, and $220,000, respectively. Assume the investments were acquired at a cost equal.
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16) On January 1, 2011, Paul Corporation acquired a 90% interest in Satorius Company for $360,000 when Satorius' stockholders' equity was $400,000; with Common stock $200,000 and Retained earnings $200,000. On January 1, 2011, Satorius Company purchased a 10% interest in Paul Company for $90,000 when Paul's total stockholders' equity was.
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7) Parker Corporation owns an 80% interest in Sample Corporation's common stock. Throughout 2010, Sample had 10,000 shares of common stock outstanding and Parker had 100,000 shares of common stock outstanding. Sample's only dilutive security consists of $50,000 face amount of 8% bonds payable. Each $1,000 bond is convertible into.
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13) Sandy Corporation's stockholders' equity on December 31, 2010 was as follows: 10% cumulative preferred stock, $100 par value, callable at $105, with one year dividends in arrears$100,000 Common stock, $1 par value200,000 Additional paid-in capital40,000 Retained earnings160,000 Total stockholders' equity$500,000 On January 1, 2011, Bombard Corporation paid $200,000 for a 90% interest in Sandy's common stock..
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8) Peyton Corporation owns an 80% interest in Sampe Corporation's common stock. Throughout 2011, Sampe had 10,000 shares of common stock outstanding and Peyton had 100,000 shares of common stock outstanding. Sampe's only dilutive security consists of $100,000 face amount of 8% bonds payable. Each $1,000 bond is convertible into.
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2. What is the amount of goodwill reported on the consolidated balance sheet for Panata Corporation (and Subsidiary) at January 2, 2011? 3. What is the noncontrolling interest that appeared on a consolidated balance sheet for Panata Corporation (and Subsidiary) on January 2, 2011? 2) Sally Corporation's stockholders' equity on December 31,.
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18) On December 31, 2011, Potter Corporation has the following stockholders' equity: Common stock, $10 par$200,000 Retained earnings100,000 Total stockholders' equity$300,000 On January 1, 2012, Potter Corporation declared and issued a 10% stock dividend when the market price per share was $50. On January 2, 2012, Corrao Corporation purchased an 80% interest in Potter Corporation.
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2) At December 31, 2010, the stockholders' equity of Godwin Corporation and its 80%-owned subsidiary, Goldberg Corporation, are as follows: GodwinGoldberg Common stock, $10 par value$20,000$12,000 Retained earnings8,0006,000 Totals$28,000$18,000 Godwin's Investment in Goldberg is equal to 80 percent of Goldberg's book value. Goldberg Corporation issued 225 additional shares of common stock directly to Godwin on.
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11) On September 1, 2011, Beck Corporation acquired an 80% interest in Johnsen Corporation for $700,000. Johnsen's stockholders' equity at January 1, 2011 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings. The book values of its assets and liabilities were equal to their respective fair values on.
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Multiple Choice Questions 1) How much should the Parminter's Investment in Sanchez—Common Stock, change during 2011? A) $5,000 B) $20,000 C) $25,000 D) $30,000 2) What should be the noncontrolling interest share, common in the consolidated financial statements of Parminter for the year ending December 31, 2011? A) $ 5,000 B) $20,000 C) $25,000 D) $30,000 3) What should be the.
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4) Savy Corporation's stockholders' equity on December 31, 2010 was as follows: 8% cumulative preferred stock, $100 par value, callable at $109, with two years of dividends in arrears$100,000 Common stock, $25 par value700,000 Additional paid-in capital250,000 Retained earnings400,000 Total stockholders' equity$1,450,000 On January 1, 2011, Paul Corporation purchased a 70% interest in Savy's common stock for $2,100,000..
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6) Paco Corporation owns 90% of Aber Corporation, Aber Corporation owns 85% of Back Corporation, and Back Corporation owns 5% of Aber Corporation. The separate net incomes (excluding investment income) of Paco, Aber, and Back are $100,000, $40,000, and $55,000, respectively. Assume the investments were acquired at a cost equal.
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Multiple Choice Questions 1) Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc. Which of the following is correct? A) Bajo should not be consolidated because noncontrolling interests hold 52%. B) Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure. C) Pallet.
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12) On September 1, 2011, Nelson Corporation acquired a 90% interest in Corbin Corporation for $900,000. Corbin's stockholders' equity at January 1, 2011 consisted of $200,000 of Common Stock and $600,000 of Retained Earnings. The book values of its assets and liabilities were equal to their respective fair values on.
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3) Paik Corporation owns 80% of Acdol Corporation and 60% of Ben Corporation. Acdol Corporation owns 10% of Ben Corporation. All subsidiary investments were acquired at book value. There are no fair value/book value differentials associated with each investment. Separate net incomes (excluding investment income) of the affiliated companies for.
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7) At December 31, 2012 year-end, Arnold Corporation's investment in Oakes Inc. was $200,000 consisting of 80% of Oakes's $250,000 stockholders' equity on that date. On April 1, 2013, Arnold sold 20% interest (one-fourth of its holdings) in Oakes for $65,000. During 2013, Oakes had net income of $75,000 (earned.
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15) On December 31, 2011, Dixie Corporation has the following information available: Common stock, $10 par$200,000 Additional paid-in capital60,000 Retained earnings40,000 Total stockholders' equity$300,000 On December 31, 2011, Grimsled Corporation buys an 80% interest in Dixie Corporation for $240,000. On December 31, 2011, the fair value of Dixie's assets and liabilities are equal to the.
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17) On December 31, 2011, Maria Corporation has the following stockholders' equity: Common stock, $10 par$100,000 Additional paid-in capital20,000 Retained earnings80,000 Total stockholders' equity$200,000 On January 1, 2012, Maria Corporation declared and issued a 10% stock dividend when the market price per share was $50. On January 2, 2012, James Corporation purchased an 80% interest in.
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