20231125914

Nikul

Outlook Inc. merges with Pinnacle Inc. Only Pinnacle remains.   Refer to Fact Pattern 31-1. Outlook held rights in certain real property. With regard to these assets, in the merger Pinnacle assumes   a.  all of Outlook’s assets.   b.  an amount of assets equal to the ratio of the firms’ pre-merger market values.   c.  none of Outlook’s assets.   d.  only those assets acquired after the merger was proposed.

How does joint control differ from control as applied on consolidation? Oceania Limited acquired 100% of the share capital of Broadwater Limited. Broadwater had total shareholder's equity of $500 000. The book values of Broadwater Limited's assets were: buildings $30o 000, machinery $180 000. The fair values of these assets were: buildings $360 000, machinery $200 000. The tax rate is 30%. The fair value of the identifiable net assets is: a. $580 000 b. $420 000 c. $556 000 d. $444 444

A wholly owned subsidiary declared dividend and half remains unpaid bythe end of the year, which of the following is TRUE? a. Only half of the amount of the dividend will be used to reduce the profit ofthe parent for consolidation purposes. b. The total amount of the dividend will be eliminated in the working paperelimination entry by debiting “dividend revenue” account.c. The transaction will have an impact in the computation of the balance ofNCI at the end.d. The elimination entry will include a debit to non-controlling interest for theamount of dividend received by the non-controlling shareholders.

The following information has been taken from the consolidation worksheet of Peak and its 90 percent–owned subsidiary, Valley:• Peak reports a $12,000 gain on the sale of a building. The building had a book value of $32,000 but was sold for $44,000 cash.• Intra-entity inventory transfers of $129,000 occurred during the current period.• Valley declared and paid a $30,000 dividend during the year with $27,000 of this amount going to Peak.• Amortization of an intangible asset recognized by Peak’s worksheet was $16,000 for the current period.• Consolidated accounts payable decreased by $11,000 during the year.Indicate how to reflect each of these events on a consolidated statement of cash flows.

A parent acquires the outstanding bonds of a subsidiary company directly from an outside third party. For consolidation purposes, this transaction creates a gain of $45,000. Should this gain be allocated to the parent or the subsidiary? Why?

Solve this question. General accounting

1. what is the basis for consolidation?2. is goodwill being remeasured to fair value at each reporting period? if false, what is the correct answer?3.a. Before consolidation, entity A's retained is how much? 3.b.he consolidated earning is how much?this is the scenario for #3a and b:entity A acquired 90% interest in ENtity B on January 1, 20x1 when entity B's net assets had a fair value of 100. On December 31, 20x2, Entity B's net assets increased to 200 after adjustments for acquisition date fair values, net of depreciation.

Which item is eliminated when preparing a consolidation worksheet? a. Equipment acquisitions Macca Ltd has a wholly (100%) owned subsidiary, Walnut Ltd. Walnut Ltd has a subsidiary, Cashew Ltd and owns 75% of the subsidiary’s shares. If Cashew Ltd went into liquidation, Macca Ltd would be entitled to: a. 75% of any surplus of Cashew Ltd’s assets over its liabilities. b. 100% of profits made by Cashew Ltd since Macca Ltd acquires Walnut Ltd. c. 75% of profits made by Cashew Ltd since its acquisition by Walnut Ltd. d. whichever of the above that gives Macca Ltd the highest entitlement. b. Intragroup dividends c. Goodwill d. Retained earning

please explain your answer

King’s Road recently acquired all of Oxford Corporation’s stock and is now consolidating the financial data of this new subsidiary. King’s Road paid a total of $850,000 for Oxford, which has the following accounts:a. What amount of deferred tax liability arises in the acquisition?b. What amounts will be used to consolidate Oxford with King’s Road at the date of acquisition?c. On a consolidated balance sheet prepared immediately after this takeover, how much goodwill should King’s Road recognize? Assume a 40 percent effective tax rate.

When Jolt Co. acquired 75% of the common stock of Yelts Corp., Yelts owned land with a book value of $70,000 and a fair value of $100,000. What amount should have been reported for the land in a consolidated balance sheet, assuming the investment was obtained prior to the date the purchase method of accounting for new business combinations was discontinued? a) $92,500. b) $75,000. c) $85,000. d) $70,000. e) $100,000