Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation. To Calculate : Number of shares that were issued, assuming that P Company’s common stock market value of $ 25 per share at the time of exchange.

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Answer 1

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 2

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 3

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 4

Question

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

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Answer 5

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

Answer 6

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

Answer 7

Chapter 1, Problem 1.20E

a.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Number of shares that were issued, assuming that P Company’s common stock market value of $25 per share at the time of exchange.

Answer 8

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

Answer 9

b.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: The par value per share of P Company’s common stock.

Answer 10

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

Answer 11

c.

To determine

Concept Introduction: Consolidation is the process of accounting where books of the parent company are reported along with the books of the subsidiary company in consolidated/combined form after making necessary adjustment entries as required in the process of consolidation.

To Calculate: Amount of goodwill which P company’s record at the time of business combination.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.7Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q

Solution Summary: The author explains the process of accounting where books of the parent company and the subsidiary company are reported in consolidated/combined form.

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Chapter 1 Solutions