Advanced Accounting (Looseleaf)
12th Edition
ISBN: 9780077632595
Author: Hoyle
Publisher: MCG
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Chapter 4, Problem 15P
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TRUE OR FALSE: Indicate whether the statements are true or false.
1. Assuming the parent acquired 100 percent of the subsidiary’s stock and there are no purchase differentials, the investment income recorded by the parent in the current period will equal the subsidiary’s current net income recognized subsequent to the acquisition date.
2.
Chapter 4 Solutions
Advanced Accounting (Looseleaf)
Ch. 4 - Prob. 1QCh. 4 - Atwater Company acquires 80 percent of the...Ch. 4 - What is a control premium and how does it affect...Ch. 4 - Prob. 4QCh. 4 - How is the noncontrolling interest in a subsidiary...Ch. 4 - Prob. 6QCh. 4 - Prob. 7QCh. 4 - Prob. 8QCh. 4 - Prob. 9QCh. 4 - Prob. 10Q
Ch. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Prob. 11PCh. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Prob. 14PCh. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Current liabilities: a. 50,000 b. 46,000 c. 40,000...Ch. 4 - Prob. 20PCh. 4 - Stockholders equity: a. 80,000 b. 90,000 c. 95,000...Ch. 4 - Prob. 22PCh. 4 - Prob. 23PCh. 4 - Prob. 24PCh. 4 - Prob. 25PCh. 4 - Prob. 26PCh. 4 - Prob. 27PCh. 4 - Prob. 28PCh. 4 - Prob. 29PCh. 4 - Prob. 30PCh. 4 - Prob. 31PCh. 4 - Prob. 32PCh. 4 - Prob. 33PCh. 4 - Prob. 34PCh. 4 - Prob. 35PCh. 4 - Prob. 36PCh. 4 - Prob. 37PCh. 4 - Prob. 38PCh. 4 - Prob. 39PCh. 4 - Prob. 40PCh. 4 - Prob. 41PCh. 4 - Prob. 42PCh. 4 - Prob. 1DYS
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- TRUE OR FALSE: Indicate whether the statements are true or false. 1. Worksheet elimination 1 will include only the subsidiary’s stock (par value and additional paid-in capital), Retained Earnings, and the parent’s Investment in Subsidiary account when the parent has acquired 100 percent of the subsidiary’s stock at book value at the beginning of the period. 2.arrow_forwardGardner Corp. owns 80% of the voting common stock of Lockhart Co. Lockhart owns 70% of Canning Co. Gardner and Lockhart both use the initial value method to account for their investments. The following information is available from the financial statements and records of the three companies: Separate company net income before investment income Dividend income from investment in subsidiary Deferral of intra-entity gains Amortization expense related to excess fair value over book value of investment Gardner Lockhart Canning Co. Co. $900,000 $650,000 $150,000 Corp. 250,000 120,000 110,000 80,000 20,000 40,000 25,000 Separate company net income includes Intra-entity gains before the consolidating deferral but does not include dividend income from investment in subsidiary. What amount of dividends should Gardner Corp. recognize in its consolidated net income with respect to dividends received from Canning Co.?arrow_forward1. On January 1, 20x1, Entity A acquires 30% interest in Entity B d. Entity A should not apply the equity method. amount of the investment in associate on December 31, 20x2? interest in Entity B. Entity B reports profit of 94M for the amount of the investment in associate on December 31, 20x1? dividends of P50,000 in 20x1. How much is the carrying P200,000 and declares no dividends. What is the carrying 2. Entity A uses the equity method in accounting for its 20% period. Entity B has outstanding 5% cumulative preference for P600,000. Entity B reports profit of P200,000 and declares of P300,000 at year-end. In 20x2, Entity B reports loss of PAS 28 319 ned to exist a. 550,000 b. 590,000 c. 600,000 d. 640,000 vestee. vestee. avestee. stee's board c. 645,000 Under this ce is initially 600,000 a. d. 630,000 b. 660,000 ement e investor's nges in chares with an aggregate par value of P10M. Entity A holds none of the preference shares. Entity B did not declare dividends on the preference…arrow_forward
- How much is the Profit attributable to equity holders of parent (Parent’s Interests/Controlling Interest in Profit) for 20x1:A. 356,500 C. 363,075B. 362,200 D. 386,500arrow_forwardIf ABC Co. sold everything it owned and paid off all the company owed, the amount left over would represent ABC's ______. Question 42 options: A) revenue B) owners' equity C) liabilities D) goodwill E) assetsarrow_forward3. Set out below are the draft income statements of P and its subsidiary S for the year ended 31 December 20X7. On the 1 January 20X6 P purchased 75% of the ordinary shares in S. Revenue Cost of sales and expenses Gross profit Operating expenses Profit from operations Finance costs Profit before taxation Tax Profit for the year P $000 300 (180) 120 (47) 73 73 (25) 48 S $000 150 (70) 80 P values non-controlling interest using the fair value method. (23) 57 (2) 55 (16) 39 During the year S sold goods to P for $20,000, making a mark up of one third. Only 20% of these goods were sold before the end of the year, the rest were still in inventory. Prepare the consolidated income statement for the year ended 31 December 20X7arrow_forward
- What is the total amount of share premium to be reported by the surviving company?a. P1,000,000 c. P1,750,000b. P944,600 d. P1,400,000arrow_forwardCan you help me with part b?arrow_forwardIf P. company paid $360000 to acquire a part of S. company common stocks and if the positive difference balance between the total implied value and the total amount of S. company equities was $130000 and the total amount of the book value of S. company equities was :$350000, then answer (16-20) The percentage of controlling.16 = interest in S. companyarrow_forward
- Question #10: Argossey Corp owns a 70% equity interest in Gramcercy a subsidiary company. During the current year, Argossey sold off a small portion of their stock in Gramercy to an outside company. Before recording this transaction, Argossey adjusted the book value of its investment account. a) What is the purpose of Argossey adjusting its book value? b) How should the parent company record the transaction and what disclosure, if any, is required in the financial sttements and; c) How would Argossey account for the remainder of its investment subsequent to the sale of their partial interest in Gramercyarrow_forwardQuestion: How much is the total share of Aubrey in the profit for the period?arrow_forwardQuestions: a. How much is the Consolidated Gross Profit in 2022? b. Based on the problem, how much is the Net Income Attributable to Parent? c. Based on the problem, how much is the Net Income Attributable to NCI?arrow_forward
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