A parent company acquires from a third party bonds that had been issued originally by one of its subsidiaries. Why is the consolidation process simpler if the bonds had been acquired directly from the subsidiary than from a third party?

Q: On an income distribution schedule, any gain or loss resulting from intercompany bonds is charged to…

A: Bonds are tradable assets issued by business entities as debt instruments. The holders of the bonds…

Q: The motivation of a parent company to purchase the outstanding bonds of a subsidiary could be to:…

A: Lets understand the basics. Parent company and subsidiary company generally enters into transaction…

Q: 1/ An affiliated company (i.e., Parent) purchases bonds from outside parties. The bonds were…

A: Reasons 1/ Elimination procedures for intercompany bonds purchased from an outsider party, issued by…

Q: What does empirical evidence suggest about the distribution of gains from mergers? Shareholders of…

A: Gain from merger can be calculated by analyzing the change in the total equity value of company…

Q: In many cases, EPS is computed based on the parent’s portion of consolidated net income and parent…

A: Answer:

Q: A parent acquires the outstanding bonds of a subsidiary company directly from an outside third…

A: Describe whether the gain should be allocated to the parent or the subsidiary: The gain of $45,000…

Q: ntercompany debt that must be eliminated from consolidated financial statements may result from:…

A: Intercompany debts are eliminated from the consolidated financial statements.  Intercompany…

Q: the accounting valuations for the post -control step acquisitions to the Berkshire Hathaway…

A: Warren Buffett has appeared to be round for appropriate strategies to guess Berkshire Hathaway's…

Q: non-controlling interests

A: Non-controlling interest is the part of the equity held by the minority shareholders in a subsidiary…

Q: Why would a company implement this upon acquisitions: "All significant intercompany transactions and…

A: Due to the growth and investing strategies of the company a company can invest into another company…

Q: What is the difference between an acquisition and a merger?

A: Mergers and acquisitions refer to the process in which two companies are consolidated by means of…

Q: For purposes of the wash sale rules, substantially identical securities are always securities in the…

A: For the requirements of the wash sale rules, substantially identical securities may comprise either…

Q: A(n) ________________ occurs when the management of the target company purchases a controlling…

A: A. Greenmail Greenmail is the practice of purchasing or buying a number of shares of other company…

Q: How does a merger allow a firm to circumvent tax laws?

A: Mergers are the business settings that allow a corporation to unite with another corporation and…

Q: Investors sometimes transfer assets to investee’s shareholders other than cash and investor’s stock.…

A: Acquisition Now a days in the business circle acquisition is very common in nature, the main reason…

Q: takeover is the acquisition of control over a corporation through a purchase of sub O True O False

A: Takeover means when one company purchase another company's majority or substantially all of its…

Q: How are rights, warrants, and options of subsidiary companies treated in the computation of…

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Q: In question (4), why is the consolidation process simpler if the bonds had been acquired directly…

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.