EBK ADVANCED FINANCIAL ACCOUNTING
EBK ADVANCED FINANCIAL ACCOUNTING
12th Edition
ISBN: 9781260165104
Author: Christensen
Publisher: YUZU
Question
Book Icon
Chapter 4, Problem 4.37AP

a

To determine

Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.

The entry required to record the acquisition of S on P’s books on December 31, 20X6.

b

To determine

Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.

The entries recorded in books of S on December 31, 20X6 related to business combination if push down accounting is applied

c

To determine

Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.

The entries that P would record during immediately after combination

d

To determine

Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.

The entries recorded by P during 20X7 related to investment in S using equity method.

e

To determine

Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.

The elimination entries recorded in 20X7 for full set of books

f

To determine

Introduction: Revaluation of assets and liabilities directly on its books is referred to as push down accounting, when a revaluation of assets and liabilities takes place directly on the books of a subsidiary, there will be no differential, when revaluation takes place outside, the allocation of the differential is done in consolidation worksheet.

The consolidation entries recorded 20X8

Blurred answer
Students have asked these similar questions
On January 1, 20x1, ABC Corporation purchased all of XYZ Corporation's common stock for $1,200,000. On that date, the fair values of XYZ's assets and liabilities equaled their carrying amounts of $1,320,000 and $320,000, respectively. During year 1, XYZ paid cash dividends of $20,000. Selected information from the separate balance sheets and income statements of ABC and XYZ as of December 31, year 1, and for the year then ended follows: ABC Corporation (Column 1), XYZ Corporation (Column 2) In ABC's December 31, year 1 consolidated balance sheet, what amount should be reported as total retained earnings?
On January 1, 20x1, Puno Inc. acquired 80% interest in Dong Company. During 20x2, Puno and Dong reported net income of P800,000 and P340,000, respectively. Puno declared dividend of P250,000 and Dong P120,000. On the date of business combination, the fair value of inventory and equipment of Dong Company were more than its book value by P100,000 and P200,000. The equipment has a remaining life of 5 years. What is the consolidated net income attributable to Puno Inc.?
On January 1, 20x1, Puno Inc. acquired 80% interest in Dong Company. During 20x2, Puno and Dong reported net income of P800,000 and P340,000, respectively. Puno declared dividend of 250,000 and Dong P120,000. On the date of business combination, the fair value of inventory and equipment of Dong Company were more than its book value by P100,000 and P200,000. The equipment has a remaining life of 5 years. 13. What is the consolidated net income attributable to Puno Inc.? 14. What is the non-controlling interest in net income of subsidiary?

Chapter 4 Solutions

EBK ADVANCED FINANCIAL ACCOUNTING

Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
SWFT Corp Partner Estates Trusts
Accounting
ISBN:9780357161548
Author:Raabe
Publisher:Cengage