Concept explainers
a
Incorporation of
Requirement 1
the entries for revaluation of assets and transfer of assets to A&B corporation.
b
Incorporation of partnership: a partnership may decide to incorporate the business to have access to additional equity financing, to limit partners personal liability, to obtain tax advantages, or to achieve a business purposes. At the incorporation partnership is terminated, and assets and liabilities are revalued to their fair value. The gain or loss on revaluation is allocated to partners’ capital accounts in profit and loss sharing ratio. Capital stock in new corporation is then distributed in proportion to the partners’ capital accounts.
Requirement 2
the entries in books of A&B corporation to record assets and issuance of stock
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 16 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
- please help with how to solve this thank youarrow_forwardThis Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows: Actual overhead variable costs Standard hours allowed for actual production Actual labor hours worked $ 78,000 10,000 9,800 How much is the controllable overhead spending variance? a. $2,000 favorable b. $400 favorable c. $400 unfavorable d. $2,000 unfavorablearrow_forwardNeed step by step answerarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
![Text book image](https://www.bartleby.com/isbn_cover_images/9780357109731/9780357109731_smallCoverImage.gif)