In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs, which of the following is correct? Answers: A. Firms are not required to disclose the business purpose for a combination. B. Firms are not required to disclose the name of the acquired company. C. Firms are required to disclose the nature, terms and fair value of consideration transferred in a business combination. D. Firms are not required to disclose the details about step acquisitions.
- Question 27
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In reference to the FASB disclosure requirements about a business combination in the period in which the combination occurs, which of the following is correct? |
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- Question 28
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Which one of the following statements is correct for an investor company? |
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- Question 29
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Bird Corporation has several subsidiaries that are included in its consolidated financial statements and several other investments in corporations that are not consolidated. In its year-end
Due from Pheasant Corporation $25,000 Due from Turkey Corporation 5,000 Cash advance to Skylark Company 8,000 Cash advance to Starling 15,000 Current receivable from Ostrich 10,000
What amount should Bird report as intercompany receivables on its consolidated |
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- Question 30
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A subsidiary can be excluded from consolidation if |
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- Question 31
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Use the following information to answer the following 6 questions.
On January 1, 2014, Punch Corporation purchased 80% of the common stock of Soopy Co. Separate balance sheet data for the companies at the acquisition date (after the acquisition) are given below:
Punch Soopy Cash $34,000 $206,000 Inventory 132,000 38,000 Land 68,000 32,000 Plant assets 700,000 300,000 Accum. Investment in Soopy 392,000 Total assets $ 1,230,000 $ 542,000
Accounts payable $206,000 $142,000 Capital stock 800,000 300,000 Total liabilities & equities $ 1,230,000 $ 542,000
At the date of the acquisition, the book values of Soopy's net assets were equal to the fair value except for Soopy's inventory, which had a fair value of $60,000.
Determine below what the consolidated balance would be for each of the requested accounts.
What amount of Inventory will be reported? |
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