Consolidation of Statements: In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience. Amortization: Amortization is same as depreciation , but it is used for intangible assets like patents, franchise, goodwill , trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization. Consolidated net income for 2015.

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Answer 1

Question

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

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The predetermined overhead rate for the year must have been closet to:

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Answer 2

Question

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

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Answer 3

Question

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

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Answer 4

Question

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

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Answer 5

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

Answer 6

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

Answer 7

Chapter 3, Problem 4UTI

a.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Consolidated net income for 2015.

Answer 8

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

Answer 9

b.

To determine

Concept Introduction:

Consolidation of Statements:

In today’s world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company. Once a company acquires another company the net assets of the other company is recorded in the books of the parent company. Consolidation of financial statements of both the parent company and subsidiary company is important for the stockholders of the parent company. A parent company may choose any of the two basic methods for consolidation and they are the equity method or cost method. The accounting methods used by a parent company for consolidation is purely based on their convenience.

Amortization:

Amortization is same as depreciation, but it is used for intangible assets like patents, franchise, goodwill, trademark etc. The cost of the intangible assets is allocated to expense over its useful life. This technique is called amortization.

Non-controlling share of income for 2015.

Answer 10

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Answer 11

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Answer 13

Ch. 3 - Prob. 1UTI Ch. 3 - Prob. 2UTI Ch. 3 - Prob. 3UTI Ch. 3 - Prob. 4UTI Ch. 3 - Prob. 5UTI Ch. 3 - Prob. 6UTI Ch. 3 - Prob. 7UTI Ch. 3 - Prob. 1E Ch. 3 - Prob. 2E Ch. 3 - Prob. 3.1E

Solution Summary: The author explains that in today's world of business acquisition of smaller companies is common and such acquisitions helps in the growth of the parent company.

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