a
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
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
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
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
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
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
Want to see the full answer?
Check out a sample textbook solution
Chapter 4 Solutions
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
- please give me true answerarrow_forwardSharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Sharon made the following presentation to Carla Vista's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 978,400 76,500 1,054,900 Gross profit 684,600 24,400 709,000 Operating expenses 528,500 49,700 578,200 Net income $156,100 $(25,300 ) $130,800 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sharon right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding…arrow_forwardhello tutor please help mearrow_forward
- i need correct optionarrow_forwardMark purchased 200 shares of stock for $40 per share. During the year, he received $500 in dividends. He recently sold the stock for $55 per share. What was Mark's return on the stock? a) $3,500 b) $4,000 c) $3,900 d) $4,500arrow_forwardSummit Industries has a normal capacity of 30,000 direct labor hours. The company's variable costs are $42,000, and its fixed costs are $18,000 when running at normal capacity. What is the standard manufacturing overhead rate per unit? a) $1.50 b) $1.60 c) $2.00 d) $2.10arrow_forward
