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11) On September 1, 2013, Beck Corporation acquired an 80% interest in Johnsen Corporation for $700,000. Johnsen's stockholders' equity at January 1, 2013 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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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, 2007. Additional information: 1.Pheasant sold inventory items that cost $3,000 to Sal during 2014 for $6,000. One-half of this merchandise was inventoried by Sal at year-end. At December.
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9.2   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.
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2) Pacini Corporation owns an 80% interest in Abdoo Corporation, acquired on January 1, 2013 for $700,000 when Abdoo's stockholders' equity consisted of $600,000 of Capital Stock and $200,000 of Retained Earnings. Abdoo Corporation acquired a 60% interest in Bach Corporation on July 1, 2013 for $180,000 when Bach had Capital.
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7) At December 31, 2014 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, 2015, Arnold sold 20% interest (one-fourth of its holdings) in Oakes for $65,000. During 2015, Oakes had net income of $75,000 (earned.
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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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8) Separate income statements of Pingair Corporation and its 90%-owned subsidiary, Staunch Inc., for 2014 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.
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19) Plock Corporation, the 75% owner of Seraphim Company, reported net income of $400,000 in 2013, prior to recording any income from Seraphim. Seraphim reported net income for that same year of $80,000 on their stand-alone statements. During 2013, 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, 2013, 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) At December 31, 2013, 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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13) Separate income statements of Plantation Corporation and its 90%-owned subsidiary, Savannah Corporation, for 2014 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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16) On December 31, 2013, 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, 2013, Gerald Corporation buys an 80% interest in Lorna Corporation for $240,000. On December 31, 2013, the fair value of Lorna's assets and liabilities are equal to the.
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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, 2013 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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8.1   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'.
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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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17) On December 31, 2013, 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, 2014, Maria Corporation declared and issued a 10% stock dividend when the market price per share was $50. On January 2, 2014, James Corporation purchased an 80% interest in.
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9.1   Multiple Choice Questions 1) Pallet Corporation owns 80% of Adelt Corporation and Adelt owns 60% of Bajo Inc. Which of the following is correct? A) Bajo should not be consolidated because noncontrolling interests hold 52%. B) Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure. C).
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7.2   Exercises 1) Separate company and consolidated income statements for Pitta and Sojourn Corporations for the year ended December 31, 2013 are summarized as follows:      Pitta     Soujourn    Consolidated   Sales Revenue$ 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.
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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, 2013. The stockholders' equity of Towing on January 1, 2013 consisted of $40,000 Capital Stock and $20,000 Retained Earnings. Towing's total dividends for 2013 were $6,000, paid equally on.
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14) On December 31, 2013, 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, 2013, Anne Corporation buys an 80% interest in Pat Corporation for $160,000. On December 31, 2013, the fair value of Pat's assets and liabilities are equal to the.
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Use the following information to answer the question(s) below. Pahm Corporation owns 80% of the outstanding voting common stock of Abussi Corporation, which was purchased for $60,000 over Abussi's book value. The excess purchase price was attributable to goodwill. Abussi Corporation owns 60% of the outstanding common stock of Badock Corporation,.
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8.2   Exercises 1) At December 31, 2013, 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.
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13) At January 1, 2013, 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 2013 was $40,000. No dividends were declared or paid in 2010. Raven's Investment in Trunk account balance on December 31, 2013 was.
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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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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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