Pelican Corporation acquired a 25% interest in Seafare Incorporated at book value several years ago. Seafare declared $100,000 dividends in 2013 and reported its income for the year as follows: Income from continuing operations $600,000 Loss on discontinued division (100,000) Net income $500,000 Pelican's Investment in Seafare account for 2013 should increase by Answers: A. $ 150,000. B. $ 125,000. C. $ 100,000. D. $ 180,000.
- Question 1
Pelican Corporation acquired a 25% interest in Seafare Incorporated at book value several years ago. Seafare declared $100,000 dividends in 2013 and reported its income for the year as follows:
Income from continuing operations $600,000 Loss on discontinued division (100,000) Net income $500,000
Pelican's Investment in Seafare account for 2013 should increase by |
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- Question 2
Durer Inc. acquired Sea Corporation in a business combination and Sea Corp. went out of existence. Sea Corp. developed a patent listed as an asset on Sea Corp.'s books at the patent office filing cost. In recording the combination, |
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- Question 3
At the beginning of 2014, Parling Food Services acquired a 90% interest in Simmons' Orchards when Simmons' book values of identifiable net assets equaled their fair values. On December 26, 2014, Simmons declared dividends of $50,000, and the dividends were unpaid at year-end. Parling had not recorded the dividend receivable at December 31. A consolidated working paper entry is necessary to |
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- Question 4
Which method of accounting will generally be used when one company purchases between 20% to 50% of the outstanding stock of another company? |
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- Question 5
When considering an acquisition, which of the following is NOT a method by which one company may gain control of another company? |
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- Question 6
Under the current GAAP, Goodwill arising from a business combination is |
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- Question 7
Which of the following is NOT a reason for a company to expand through a combination, rather than by building new facilities? |
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- Question 8
Which method must be used if ASC 810-10-65 prohibits full consolidation of a 70% owned subsidiary? |
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- Question 9
When preparing the consolidation workpaper for a company and its controlled subsidiary, which of the following would be used for the entities being consolidated? |
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- Question 10
Panini Corporation owns 85% of the outstanding voting stock of Strathmore Company and Malone Corporation owns the remaining 15% of Strathmore's voting stock. On the consolidated financial statements of Panini Corporation and Strathmore, Malone is |
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