Info
Warning
Danger

Study Resources (Accounting)

Multiple Choice Questions 1.Which sections of the cash flow statement are affected by the difference in the direct and indirect approaches of presenting a cash flow statement?I. Operating activities sectionII. Investing activities sectionIII. Financing activities section A.I B.II C.III D.I, II, and III 2.Which of the following observations concerning the comparisons between the direct and indirect.
11 Views
View Answer
21.Sky Corporation owns 75 percent of Earth Company's stock. On July 1, 20X8, Sky sold a building to Earth for $33,000. Sky had purchased this building on January 1, 20X6, for $36,000. The building's original eight-year estimated total economic life remains unchanged. Both companies use straight-line depreciation. The equipment's residual.
13 Views
View Answer
21.Vision Corporation acquired 75 percent of the stock of Meta Company on January 1, 20X7, for $225,000.At that date, the fair value of the noncontrolling interest was $75,000. Meta's balance sheet contained the following amounts at the time of the combination:During each of the next three years, Meta reported net.
7 Views
View Answer
Multiple Choice Questions 1.Cutler Company owns 80 percent of the common stock of Marina Inc. Cutler acquires some of Marina's bonds from an unrelated party for less than the carrying value on Marina's books and holds them as a long-term investment. For consolidated reporting purposes, how is the acquisition of Marina's.
16 Views
View Answer
Multiple Choice Questions 1.Blue Company owns 70 percent of Black Company's outstanding common stock. On December 31, 20X8, Black sold equipment to Blue at a price in excess of Black's carrying amount, but less than its original cost. On a consolidated balance sheet at December 31, 20X8, the carrying amount of.
16 Views
View Answer
41.Parent Corporation owns 90 percent of Subsidiary 1 Company's stock and 75 percent of Subsidiary 2 Company's stock. During 20X8, Parent sold inventory purchased in 20X7 for $48,000 to Subsidiary 1 for $60,000. Subsidiary 1 then sold the inventory at its cost of $60,000 to Subsidiary 2. Prior to December.
9 Views
View Answer
44.Fred Corporation owns 75 percent of Winner Company's voting shares, acquired on March 21, 20X5, at book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Winner Company.On January 1, 20X4, Fred paid $150,000 for equipment with a.
12 Views
View Answer
Essay Questions48.Portfolio Corporation acquired 70 percent ownership of Index Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Index. On January 1, 20X8, Portfolio sold 1,000 shares of Index Company.
7 Views
View Answer
21.Granite Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Mortar Corporation purchased $140,000 of Granite's bonds from the original purchaser on December 31, 20X8, for $125,000. Mortar.
6 Views
View Answer
43.Locus Corporation acquired 80 percent ownership of Stereo Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Stereo Company. Consolidated balance sheets at January 1, 20X8, and December 31, 20X8,.
6 Views
View Answer
41.X Corporation owns 80 percent of Y Corporation's common stock and 40 percent of Z Corporation's common stock. Additionally, Y Corporation owns 35 percent of Z Corporation's common stock. The acquisitions were made at book values. The following information is available for 20X8:Based on the information provided, what amount of.
13 Views
View Answer
21.Granite Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Mortar Corporation purchased $140,000 of Granite's bonds from the original purchaser on December 31, 20X8, for $125,000. Mortar.
6 Views
View Answer
11.Master Corporation owns 85 percent of Servant Corporation's voting shares. On January 1, 20X8, Master Corporation sold $200,000 par value 8 percent bonds to Servant for $245,000. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1.Based on the information given above, in the.
8 Views
View Answer
Multiple Choice Questions 1.Cutler Company owns 80 percent of the common stock of Marina Inc. Cutler acquires some of Marina's bonds from an unrelated party for less than the carrying value on Marina's books and holds them as a long-term investment. For consolidated reporting purposes, how is the acquisition of Marina's.
12 Views
View Answer
49.On January 1, 20X7, InfinityCorporationacquired 90 percent of Trader Corporation's common stock for $315,000. At the date of acquisition, the fair value of the noncontrolling interest was $35,000, and Trader reported common stock outstanding of $150,000 and retained earnings of $180,000. The differential is assigned to a patent with a.
5 Views
View Answer
Multiple Choice Questions 1.On January 1, 20X9, Company A acquired 80 percent of the common stock and 60 percent of the preferred stock of Company B, for $400,000 and $60,000, respectively. At the time of acquisition, the fair value of the common shares of Company B held by the noncontrolling interest.
14 Views
View Answer
11.Master Corporation owns 85 percent of Servant Corporation's voting shares. On January 1, 20X8, Master Corporation sold $200,000 par value 8 percent bonds to Servant when the market interest rate was 5 percent. The bonds mature in 10 years and pay interest semiannually on June 30 and Dec 31.Based on.
7 Views
View Answer
21.On July 1, 20X8, Fair Logic Corporation acquires 75 percent of Integrated Systems Inc. common stock for its underlying book value. At the time of acquisition, the fair value of the noncontrolling interest is equal to its proportionate share of book value of Integrated Systems. On January 1, 20X8 Integrated.
6 Views
View Answer
11.Any intercompany gain or loss on a downstream sale of land should be recognized in consolidated net income:I. in the year of the downstream sale.II. over the period of time the subsidiary uses the land.III. in the year the subsidiary sells the land to an unrelated party. A.I B.II C.III D.I or II 12.ABC Corporation.
11 Views
View Answer
11.Jupiter Corporation's consolidated cash flow statement for the year ended December 31, 20X8, reported operating cash inflows of $160,000, financing cash outflows of $90,000, and investing cash outflows $55,000, and an ending cash balance of $75,000. Jupiter acquired 75 percent of Ganymede Company's common stock on July 1, 20X6, at.
6 Views
View Answer
45.Pie Company acquired 75 percent of Strawberry Company's stock at the underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Strawberry Company. Strawberry Company reported shares outstanding of $350,000 and retained earnings.
20 Views
View Answer
44.Boycott Company holds 75 percent ownership of Fred Corporation. The consolidated balance sheets as of December 31, 20X8, and December 31, 20X9, are as follows:The 20X9 consolidated income statement contained the following amounts:Boycott acquired its investment in Fred on January 1, 20X6, for $120,000. At that date, the fair value.
4 Views
View Answer
Essay Questions42.Locus Corporation acquired 80 percent ownership of Stereo Company on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Stereo Company. Consolidated balance sheets at January 1, 20X8, and December 31,.
6 Views
View Answer
Essay Questions42.Peter Architectural Services owns 100 percent of Smith Manufacturing. During the course of 20X8 Peter provides $100,000 of architectural services associated with Smith's new manufacturing facility, which will open January 4, 20X9, and has a 5 year useful life. Explain the impact providing this service has on Peter Architectural.
12 Views
View Answer
46.Big Company acquired 75 percent of Little Company's stock at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Little Company. Little Company reported shares outstanding of $350,000 and retained earnings of.
11 Views
View Answer
47.Peanut Company acquired 75 percent of Snoopy Company's stock at underlying book value on January 1, 20X8. At that date, the fair value of the noncontrolling interest was equal to 25 percent of the book value of Snoopy Company. Snoopy Company reported shares outstanding of $350,000 and retained earnings of.
13 Views
View Answer
51.Windsor Corporation acquired 90 percent of Agro Corporation's common shares on January 1, 20X6, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 10 percent of the book value of Agro. Agro Corporation prepared the following balance sheet as of January 1,.
10 Views
View Answer
Essay Questions35.A subsidiary issues bonds. The parent can then acquire the bonds either directly from the subsidiary or from a nonaffiliate that had originally acquired the subsidiary's bonds.Required:a) Discuss the parent's accounting as it relates to the preparation of consolidated financial statements, for their acquisition of the bonds:1. from the.
5 Views
View Answer
Essay Questions48.Colton Company acquired 80 percent ownership of Mota Company's voting shares on January 1, 2008, at underlying book value. The fair value of the noncontrolling interest on that date was equal to 20 percent of the book value of Mota Company. During 2008, Colton purchased inventory for $30,000 and.
7 Views
View Answer
Essay Questions36.A subsidiary issues bonds. The parent can then acquire the bonds either directly from the subsidiary or from a nonaffiliate that had originally acquired the subsidiary's bonds.Required:a) Discuss the parent's accounting as it relates to the preparation of consolidated financial statements, for their acquisition of the bonds:1. from the.
5 Views
View Answer
49.Hunter Company and Moss Company both produce and purchase fabric for resale each period and frequently sell to each other. Since Hunter Company holds 80 percent ownership of Moss Company, Hunter's controller compiled the following information with regard to intercompany transactions between the two companies in 20X7 and 20X8:Required:a. Give.
8 Views
View Answer
31.Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 20X7. On January 1, 20X8, Mortar received $350,000 from Granite for equipment Mortar had purchased on January 1, 20X5, for $400,000. The equipment is expected to have a 10-year useful life and no salvage value. Both.
9 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

d
Let us boost your grade together!

Get 24/7 homework help from Experts

Let our knowledge be your backup

1

Submit your homework question or assignment

2

Receive a quote & Make the Payment

3

Sit Back & Relax to Earn Better Grades!

Drag files here or Browse your Device

Maximum file size 10MB
17,475 Accounting Questions Answered! Get Answer

We are The Best Because

  • On Time Delivery
  • Plagiarism ReportFree
  • Unlimited RevisionsFree
  • 100% Privacy & Confidential
  • 24/7 Live Chat Support
4.9 (16183 Ratings)
You can communicate directly with your expert until the solution quality is delivered to your complete satisfaction.
Looking for writing help?
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!