Info
Warning
Danger

Accounting Expert Answers, Study Resources & Learning Aids : Page 655

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
Subjects icon
150244 Materials
0 Students Benefited

LO3 Exercise 8 On January 1, 2005, Panos Corporation acquired all of the outstanding voting common stock of Saley Corporation in an acquisition.  The total purchase price for the stock was $1,300,000. Saley’s net assets on this date were as follows: Saley’s Book Values Saley’s Fair Values Cash $ 20,000 $ 20,000 Inventories 210,000 240,000 Land 200,000 250,000 Building-net 600,000 900,000 Total assets $ 1,030,000 $ 1,410,000 Liabilities $ 230,000 $ 230,000 Common stock 400,000 Retained earnings 400,000 Total equities $ 1,030,000 Assume that for federal income tax.

Homework Answers
15 Views

LO1 Exercise 2 Partel Corporation purchased 75% of Sandford Corporation on January 1, 2005, for $230,000. Balance sheets for the two companies on this date, prepared just prior to the purchase, are provided below.  Partel Book Values Sandford Book Values Sandford Fair Values Cash $ 330,000 $ 10,000 $ 10,000 Inventory 270,000 70,000 90,000 Buildings & equipment- net 500,000 120,000 190,000 Total assets $ 1,100,000 $ 200,000 $ 290,000 Common stock $ 300,000 95,000 Retained earnings 800,000 105,000 Total equities $ 1,100,000 $ 200,000 Required: Prepare one consolidated balance sheet using the proprietary (pro-rata) theory of.

Homework Answers
13 Views

LO1 Exercise 2 Samford Corporation’s stockholders’ equity on December 31, 2004 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 value 700,000 Additional paid-in capital 250,000 Retained earnings 400,000 Total stockholders’ equity $ 1,450,000 On January 1, 2005, Park Corporation purchased a 70% interest in Samford’s common stock.

Homework Answers
16 Views

LO2 Exercise 9 Padhy Corporation owns 80% of Abrams Corporation, Abrams Corporation owns 60% of Bacud Corporation, and Bacud Corporation owns 10% of Padhy Corporation. The separate incomes (excluding investment income), of Padhy, Abrams, and Bacud are $300,000, $100,000, and $80,000, respectively. Required: Calculate the consolidated net income for Padhy Corporation and.

Homework Answers
22 Views

LO3 Exercise 5 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's marginal income tax rate is 35%. During 2008, Pane Corporation received the following cash dividends: From Alder: $180,000 From Ball: $170,000 From.

Homework Answers
17 Views

LO1 Exercise 1 Paice Corporation owns 80% of the voting common stock of Accardi Corporation and 60% of the voting common stock of Badger Corporation. Accardi owns 20% of the voting common stock of Badger. There are no cost-book differentials to consider. The separate incomes of these affiliated companies for 2005 are:                            .

Homework Answers
13 Views

LO2 Exercise 10 Padua Corporation owns 80% of Able Corporation, Able Corporation owns 60% of Baden Corporation, and Baden Corporation owns 10% of Padua Corporation. The separate incomes (excluding investment income), of Padua, Able, and Baden are $300,000, $100,000, and $80,000, respectively. Required: Calculate the consolidated net income for Padua Corporation and.

Homework Answers
18 Views

LO1 Exercise 3 Pashley Corporation purchased 75% of Sargent Corporation on January 1, 2005, for $115,000. Balance sheets for the two companies on this date, prepared just prior to the purchase, are provided below.  Pashley Book Values Sargent Book Values Sargent Fair Values Cash $ 165,000 $ 5,000 $ 5,000 Inventory 135,000 35,000 45,000 Buildings & equipment- net 250,000 60,000 95,000 Total assets $ 550,000 $ 100,000 $ 145,000 Common stock $ 150,000 $ 47,500 Retained earnings 400,000 52,500 Total equities $ 550,000 $ 100,000 Required: Prepare a consolidated balance sheet using the entity theory of consolidation. .

Homework Answers
14 Views

Multiple Choice Questions LO1 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 minority interests hold 52%. b.Bajo should be consolidated because the 60% of Bajo stock is held in the affiliate structure. c.Pallet has 8% indirect ownership.

Homework Answers
18 Views

LO1 Exercise 1 At December 31, 2004, the stockholders’ equity of Goshawk Corporation and its 80%-owned subsidiary, Treetop Corporation, are as follows: Goshawk Treetop Common stock, $10 par value $    20,000 $ 12,000 Retained earnings 8,000 6,000 Totals $ 28,000 $ 18,000 Goshawk’s investment in Treetop’s account balance is equal to the Treetop book value.  Treetop Corporation issued 225 additional shares of common stock directly to Goshawk.

Homework Answers
21 Views

LO2 Exercise 8 Separate earnings and investment percentages for the three affiliates for 2005 are as follows: Separate EarningsPercentage Interest in Acres              Percentage Interest in Bain               Palace Company$450,00080% Acres Inc200,00070% Bain Corporation160,00010% Required: Compute consolidated net income for Palace for 2005.   .

Homework Answers
12 Views

Multiple Choice Questions Use the following information for Questions 1 and 2. Parminter Corporation owns an 80% interest in the common stock of Sanchez Corporation and 20% of Sanchez’s preferred stock on December 31, 2005.  Sanchez had 2005 net income of $30,000.  Sanchez’s equity was as follows: 10% preferred stock $ 50,000 Common stock        .

Homework Answers
16 Views

LO2 Exercise 6 Partridge Corporation purchased an 80% interest in Sandy Corporation for $840,000 on January 1, 2005. Sandy's balance sheet book values and accompanying fair values on this date are shown below. Book Value Fair Value Entity Theory Push- Down Balance Sheet Parent Company Theory Push- Down Balance Sheet Cash $ 30,000 $ 30,000 Receivables 200,000 200,000 Inventory 300,000 360,000 Land 50,000 90,000 Plant assets-net 250,000 300,000 Total Assets $ 830,000 $980,000 Current liabilities $ 180,000 $180,000 Other liabilities 120,000 100,000 Common Stock 400,000 Retained Earnings 130,000 Total Liab. & Equity $ 830,000 Required Complete the push-down columns of Sandy Corporation’s restructured balance.

Homework Answers
16 Views

LO2 Exercise 8 Pascal Corporation paid $225,000 for a 70% interest in Sank Corporation on January 1, 2005. On that date, Sank’s balance sheet accounts, at book value and fair value, were as follows: Book Value Fair Value Assets Cash $ 25,000 $ 25,000 Accounts receivable-net 45,000 55,000 Inventories 40,000 60,000 Property, plant, and equipment-net 140,000 125,000 Total assets $ 250,000 $ 265,000 Equities Accounts payable $ 40,000 $ 40,000 Common stock 120,000 Retained earnings 90,000 Total liab. & equity $ 250,000 Required: Prepare a balance sheet for Sank.

Homework Answers
17 Views

LO3 Exercise 9 Patch Corporation has a 50% undivided interest in Saric Corporation, a joint venture. Patch accounts for its interest in Saric by the equity method and also prepares consolidated financial statements for external reporting purposes. Patch follows specialized industry practices and uses proportionate consolidation for its interest in Saric. Separate.

Homework Answers
16 Views

LO1 Exercise 4 At December 31, 2005 year-end, Lapwing Corporation’s investment in Openground Inc. was 200,000 consisting of 80% of Openground’s $250,000 stockholders’ equity on that date.  On April 1, 2006, Lapwing sold 20% interest (one-fourth of its holdings)  in Openground for $65,000.  During 2006, Openground had net income of $75,000 and.

Homework Answers
23 Views

Multiple Choice Questions Use the following information in answering Questions 1 and 2. Pasfield Corporation acquired a 90% interest in Santini Corporation for $90,000 cash on January 1, 2005. The following information is available for Santini at that time. Book Value Fair Value Difference Current assets $ 40,000 $ 50,000 $ 10,000 Plant assets 60,000 75,000 15,000 Liabilities ( 50,000 ) ( 50,000 ) 0 Net assets $ 50,000 $ 75,000 LO1 1. Under the entity theory, a consolidated balance sheet prepared immediately after.

Homework Answers
24 Views

LO2 11. The SEC requires push-down accounting for SEC filings of subsidiaries when the subsidiary has no substantial publicly-held debt or preferred stock outstanding and a. the parent has substantial ownership (5% or greater). b. the parent has substantial ownership (20% or greater). c. the parent has substantial ownership (50% or greater). d. the parent has substantial ownership (97% or.

Homework Answers
16 Views

LO3 Exercise 10 At January 1, 2005, the stockholders’ equity of Raven Corporation and its 60%-owned subsidiary, Trunk Corporation, are as follows: Raven Trunk Common stock, $10 par value $ 700,000 $ 400,000 Retained earnings 800,000 50,000 Totals $ 1,500,000 $ 450,000 Trunk’s net income for 2005 was $40,000. Raven’s Investment in Trunk account balance on December 31, 2005 was equal to its underlying equity on December 31,.

Homework Answers
16 Views

LO2 Exercise 7 Party Corporation acquired an 80% interest in Sang Corporation on January 1, 2005 for $20,000. Balance sheet and fair value information on this date is summarized as follows: Party Book Value Sang Book Value Sang Fair Value Current assets $ 15,000 $ 9,000 $ 9,000 Land and Building-net 35,000 7,000 7,000 Equipment 8,000 4,000 6,000 Total assets $ 58,000 $ 20,000 $ 22,000 Liabilities $ 27,000 $ 10,000 10,000 Capital stock 18,000 4,000 Retained earnings 13,000 6,000 Total liab. & equity $ 58,000 $ 20,000 Required: 1. Prepare an entry on the books of Sang Corporation to record the push-down.

Homework Answers
17 Views

LO2 12. Which of the following is correct about the treatment of preacquisition earnings on consolidated financial statements? I. Exclude the subsidiary sales and expenses prior to acquisition from consolidated sales and expenses. II. Include the subsidiary sales and expenses prior to acquisition and deduct preacquisition income as a separate item. a. I only. b. II only. c. I or.

Homework Answers
46 Views

LO1 Exercise 1 Saito Corporation’s stockholders’ equity on December 31, 2004 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 value 50,000 Additional paid-in capital 150,000 Retained earnings 160,000 Total stockholders’ equity $ 370,000 On January 1, 2005, Panata Corporation paid $300,000 for a 70% interest in Saito’s underlying.

Homework Answers
14 Views

LO3 Exercise 10 On January 1, 2005, Parcel Corporation acquired all of the outstanding voting common stock of Salmon Corporation in an acquisition.  The total purchase price for the stock was $1,020,000. Salmons’s net assets on this date were as follows: Salmon’s Book Values Salmon’s Fair Values Cash $ 20,000 $ 20,000 Inventories 210,000 240,000 Land 200,000 320,000 Building-net 600,000 500,000 Total assets $ 1,030,000 $ 1,080,000 Liabilities $ 230,000 $ 210,000 Common stock 400,000 Retained earnings 400,000 Total equities $ 1,030,000 Assume that for federal income tax.

Homework Answers
17 Views

LO2 Exercise 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 incomes (excluding investment income), of Paine, Achan, and Badge are $400,000, $160,000, and $220,000, respectively. Required: Calculate the consolidated net income for Paine Corporation and.

Homework Answers
16 Views

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*