
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

Want to see the full answer?
Check out a sample textbook solution
Chapter 16 Solutions
ADVANCED FINANCIAL ACCT.(LL) >CUSTOM<
- The fixed overhead deferred in ending inventory is?arrow_forwardJust in time inventory systems primarily aim to ?arrow_forwardThe following information was taken from Kingbird Electrical Service Company cash budget for the month of July: Beginning cash balance $150000 Cash receipts 144000 Cash disbursements 204000 If the company has a policy of maintaining an end of the month cash balance of $150000, the amount the company would have to borrow is $60000. $90000. $43200. $30000.arrow_forward
- Journalize entries 1. Cash balance per bank, July 31, $8,004. 2. July bank service charge not recorded by the depositor $46. 3. Cash balance per books, July 31, $8,096. 4. Deposits in transit, July 31, $3,266. 5. $1,840 collected from a customer for Sheridan Company in July by the bank through electronic funds transfer. The collection has not been recorded by Sheridan Company. 6. Outstanding checks, July 31, $1,380.arrow_forwardOPD, who is claimed as a dependent by his parents, is 17. He received income of $3,400 from a trust fund and $700 from wages. He had $1,200 in itemized deductions. What is his taxable income?arrow_forwardDon't use ai given answer accountingarrow_forward
- The custodian of a company asset should A. be someone outside the company. B. be an accountant. C. have access to the accounting records for that asset. D. not have access to the accounting records for that asset.arrow_forwardWhat is the total amount of product Costs incurred to make 11400 units?arrow_forwardGive me correct answer pleasearrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
