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Study Resources (Accounting)

19) Plock Corporation, the 75% owner of Seraphim Company, reported net income of $400,000 in 2011, prior to recording any income from Seraphim. Seraphim reported net income for that same year of $80,000 on their stand-alone statements. During 2011, an intercompany sale of a vehicle resulted in a gain of.
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19) Pare Corporation owns 65% of the outstanding voting stock of Summer Corporation. On January 1, 2011, Pare purchased $4,000,000 of bonds that were originally issued by Summer several years earlier. The ten-year bonds have a 5% interest rate, and pay interest each December 31. The bonds were originally issued at.
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3) Pollek Corporation paid $16,200 for a 90% interest in Swamp Corporation on January 1, 2011, when Swamp stockholders' equity consisted of $10,000 Capital Stock and $3,000 of Retained Earnings. The excess cost over book value was attributable to goodwill. Additional information: 1.Pollek sells merchandise to Swamp at 120% of Pollek's cost..
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Exercises 1) Separate company and consolidated income statements for Pitta and Sojourn Corporations for the year ended December 31, 2011 are summarized as follows:      Pitta     Soujourn    Consolidated   Sales Revenue$ 500,000$ 100,000$ 600,000 Income from Sojourn19,900 Bond interest income6,000 Gain on bond retirement3,000 Total revenues519,900106,000603,000 Cost of sales$ 280,000$  50,000$ 330,000 Bond interest expense9,0003,600 Other.
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7) Paula's Pizzas purchased 80% of their supplier, Sarah's Sauces.  Sarah's book values equaled fair value at the time of the acquisition.  Paula sold Sarah some packaging equipment on January 2, 2011 for $100,000.  The equipment had a carrying value of $90,000, and original cost of $120,000, and had a.
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Exercises 1) At December 31, 2010, the stockholders' equity of Gost Corporation and its 80%-owned subsidiary, Tree Corporation, are as follows:     Gost       Tree  Common stock, $10 par value$20,000$12,000 Retained earnings8,0006,000 Totals$28,000$18,000 Gost's Investment in Tree is equal to 80 percent of Tree's book value. Tree Corporation issued 225 additional shares of common stock directly.
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5) Pierce Manufacturing owns all of the outstanding voting common stock of Sylvia Company, as acquired several years ago when the book values and fair values of Sylvia's net assets were equal. In 2010, Pierce set out to re-structure the company, and in doing so, re-aligned the manufacturing processes to streamline.
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4) Plower Corporation acquired all of the outstanding voting common stock of the Squab Corporation several years ago when the book values and fair values of Squab's net assets were equal. On April 1, 2010, Plower sold land that cost $25,000 to Squab for $40,000. Squab resold the land for $45,000.
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Exercises 1) Pigeon Company owns 80% of the outstanding stock of Spiniflex Corporation, which was purchased on January 1, 2006, when Spiniflex's book values were equal to its fair values. The amount paid by Pigeon included $16,000 for goodwill. On January 1, 2007, Pigeon purchased a truck for $40,000 which had no.
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13) Separate income statements of Plantation Corporation and its 90%-owned subsidiary, Savannah Corporation, for 2011 are as follows, prior to Plantation recording any income related to its subsidiary: PlantationSavannah Sales Revenue$870,000 $230,000 Gain on equipment35,000 Gain on land20,000 Cost of sales(470,000)(90,000) Other expenses(265,000)(60,000) Separate incomes$170,000 $100,000 Additional information: 1.Plantation acquired its 90% interest in Savannah.
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Multiple Choice Questions 1) Which of the following is correct? The direct sale of additional shares of stock at book value per share to only the parent company from a subsidiary A) decreases the parent's interest and decreases the noncontrolling shareholders' interest. B) decreases the parent's interest and increases the noncontrolling shareholders' interest. C).
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4) Pheasant Corporation owns 80% of Sal Corporation's outstanding common stock that was purchased at book value equal to fair value on January 1, 2005. Additional information: 1.Pheasant sold inventory items that cost $3,000 to Sal during 2012 for $6,000. One-half of this merchandise was inventoried by Sal at year-end. At December.
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15) Porter Corporation acquired 70% of the outstanding voting common stock of Sherman Inc. in 2004. On January 1, 2005, Sherman Inc. purchased a depreciable machine for $120,000 cash with an estimated useful life of 10 years that was depreciated on a straight-line basis. The machine has no estimated salvage.
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11) Pongo Company has $2,000,000 of 6% bonds outstanding on December 31, 2010 with unamortized premium of $60,000. These bonds pay interest semiannually on January 1 and July 1 and mature on January 1, 2016. Straight-line amortization is used. Syring Inc., 90%-owned subsidiary of Pongo, buys $1,000,000 par value of Pongo's.
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1) Which of the following is correct? A) No consolidation working paper entry is required for this transaction in 2011. B) A consolidation working paper entry is required only if the subsidiary was less than 100% owned in 2011. C) A consolidation working paper entry is required each year that Sidd has the.
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11) Parrot Company owns all the outstanding voting stock of Southern Manufacturing.  On January 1, 2012, Parrot sold machinery to Southern at its book value of $24,000.  Parrot had the machinery three years before selling it and used an eight-year straight-line depreciation method, with zero salvage value.  Southern will use.
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6) Snow Company is a wholly owned subsidiary of Penguin Corporation.  On January 1, 2009, Penguin transferred equipment to Snow for $195,000.  The equipment had originally cost $250,000, but at the time of transfer, had a $180,000 book value and a five year remaining life.  Both companies use the straight-line.
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19) Presented below are several figures reported for Plate Corporation and Saucer Industries as of December 31, 2011.  Plate has owned 70% of Saucer for the past five years, and at the time of purchase, the book value of Saucer's assets and liabilities equaled the fair value.  The cost of.
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11) If SOS sold the additional shares directly to Great, Great's Investment in SOS account after the sale would be A) $1,350,000. B) $1,395,000. C) $1,425,000. D) $1,500,000. 12) Consider a sale of stock by a subsidiary to parties outside the consolidated entity. This transaction requires an adjustment of the parent's investment and additional paid-in.
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8) Separate income statements of Pingair Corporation and its 90%-owned subsidiary, Staunch Inc., for 2011 were as follows: Pingair Staunch Sales Revenue$2,200,000 $1,000,000 Cost of sales(1,400,000)(600,000) Other expenses(400,000)(200,000) Gain on equipment80,000 Income from Staunch128,000           Net income$608,000 $200,000 Additional information: 1.Pingair acquired its 90% interest in Staunch Inc. when the book values.
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16) On January 1, 2011, Palling Corporation purchased 70% of the common stock of Sam's Storage Systems for $320,000 when Sam's had Common Stock outstanding of $100,000 and Retained Earnings of $200,000. Any excess differential was attributed to goodwill. At the end of 2011, Palling and Sam's had unrealized inventory profits.
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