I am not sure how to answer this question. Can please help me undetstand whyIn a consolidation, why does beginning RE need to be adjusted for the year subsequent to acquisition when the parent uses the cost method, but no adjustment to beginning RE is needed for the year of acquisition

I am not sure how to answer this question. Can please help me undetstand whyIn a consolidation, why does beginning RE need to be adjusted for the year subsequent to acquisition when the parent uses the cost method, but no adjustment to beginning RE is needed for the year of acquisition

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: When a company is acquired, which of these intangible assets, unrecorded on the acquired company's…

A: Non-physical assets with no physical substance but having value for a company are known as…

Q: 1. How much goodwill did Decca Publishing purchase as part of the acquisition of Thrifty Nickel

A: Given: Amount paid by Decca publishing = $ 230,000 Amount of total assets = $ 130,000 Amount of…

Q: Under PFRS for SME's, goodwill arising from business combination Charged to retained earnings…

A: Goodwill arising from business combination will be shown as intangible asset in the statement of…

Q: Determine the amounts that should be debited to Land, to Buildings, and to Machinery and Equipment.…

A: Capitalization is an accounting method in which a cost is included in the value of an asset and…

Q: Intangible assets that have an indefinite useful life: Multiple Choice are those with no foreseeable…

A: Intangible assets are non-physical assets that have value to a company but do not have a physical…

Q: Required information [The following information applies to the questions displayed below.] DLW…

A: Modified Accelerated Cost Recovery System (MACRS):It is a depreciation method that provides greater…

Q: At the Beginning of the year, Anna began a calendar-year business and placed year: Asset Computers…

A: Given : Cost of basis computer = $20,000 Cost of basis of Office desk = $32,000 Cost of basis of…

Q: #1-5 please, thank you! listed below are various Types of accounting changes and errors. 1.…

A: Answer:- Accounting error:- An unintentional inaccuracy in an accounting entry is generally…

Q: Wember Company acquired a subsidiary company on December 31, 2015, and recorded the cost of the…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse…

A: This question is related to accounting, which involves the recording, summarizing, and reporting of…

Q: 3.Fill in the blanks on the following like-kind exchanges Adjusted basis of old asset a. b. C. d. e.…

A: Answer:- Realized gain meaning:- When an investment is sold for more than it cost to buy it, a…

Q: During 2019, Brooke sold to its subsidiary, Cabana, land with a book value of $507,000. The selling…

A: In the pre-consolidation accounting records, the parent entity should recognize the profit on every…

Q: Goodwill arising from business combination is Charged to retained earnings after the acquisition…

A: Last option i.e. Never amortized, is the correct answer.

Q: Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying…

A: Capital allowances and depreciation appear to be two tax-deduction techniques that businesses can…

Q: Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three…

A: Depreciation refers to the concept of accounting where the asset value decreases over the useful…

Q: Question 27 Depreciation, depletion, and amortization: All of these answer choices are correct. All…

A: An accounting approach known as depreciation, depletion, and amortization (DD&A) allows…

Q: What is the difference in the treatment of internally generated goodwill from the purchased goodwill…

A: The answer for the multiple choice question and relevant explanation are presented hereunder :

Q: Match the concept that closely describes a particular depreciation method. Choose the correct answer…

A: Lets understand the basics. Double declining balance method is a accelerated depreciation method…

Q: ould the consolidation entries in requirement (a) have differed if Gibson had sold a building on…

A: The process of integrating the financial results of numerous subsidiary firms into the parent…

Q: Impairment of Goodwill Instructions Chart of Accounts General Journal Instructions Next Level…

A: Impairment of goodwill When the carrying value of goodwill on financial statements exceeds its fair…

Q: If a company acquires a brand name, it should be A)Depreciated over its useful life B)Amortized…

A: Brand name acquisition is an asset and should be reported on the assets side of the balancesheet.

Q: Purchase Company recently acquired several businesses and recognized goodwill in each acquisition.…

A: Goodwill impairment refers to the situation when the company decides to pay more amount than the BV…

Q: The following are selected account balances from Penske Company and Stanza Corporation as of…

A: Calculation of consolidated copyrights , net income , retained earnings and goodwill with necessary…

Concept explainers

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.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

From page 7-1 of the VLN, acquisition cost would NOT include: A. Purchase price. B. Transportation cost to get the asset ready to be used. C. Sales taxes. D. Cost incurred to operate the asset.
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Shamrock Unlimited bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Saved $9,400 840 720 590 Year 2 units-of-production depreciation expense PA9-1 (Algo) Part 4 4. Compute year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $43,680, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations.)
FASB recently issued a Proposed Accounting Standard Update on impairment for intangible assets. What is the primary purpose for FASB to issue Proposed Accounting Standards Updates?
Thank you. Is there another way to book the consolidation entry? There is no "diffrential" account option. Here are the additional journal entries. I am having trouble figuring out how to book the entries.
no photo copy