EBK ADVANCED FINANCIAL ACCOUNTING
11th Edition
ISBN: 8220102796096
Author: Christensen
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 5.1.4E
To determine
Concept Introduction:
Consolidation of accounts: When a company acquires significant influence in another company then that company is known as holding company. Holding company is needed to consolidate its accounts with the subsidiary.
To choose: The correct option.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Please Assist in this question (a) During the current period SP Ltd sold inventory to its wholly owned subsidiary, Jaza Ltd, for $15 000. These items previously cost Sp Ltd $12 000. JazaLtd subsequently sold half the items to Nanjing Ltd for $8000. The tax rate is 30%. The group accountant for SP Ltd, Steve yu, maintains that the appropriate consolidation adjustment entries are as follows: Required (i) Discuss whether the entries suggested Steve Yu are correct, explaining on a line-by-line basis the correct adjustment entry. (ii)Determine the consolidation worksheet entries in the following year, assuming the inventory has been –sold, and explain the adjustments on a line-by-line basis. (b) On 1 July 2016 Henna Ltd sold an item of plant to Jordy Ltd for $450000 when its’ carrying value in Henna Ltd book was $600000 (costs $900000, accumulated depreciation $300000). This plant has a remaining useful life of five (5) years form the date of sale. The group measures its property plants and…
How does joint control differ from control as
applied on consolidation?
Oceania Limited acquired 100% of the share
capital of Broadwater Limited. Broadwater had
total shareholder's equity of $500 000. The book
values of Broadwater Limited's assets were:
buildings $30o 000, machinery $180 000. The fair
values of these assets were: buildings $360 000,
machinery $200 000. The tax rate is 30%. The fair
value of the identifiable net assets is:
a. $580 000 b. $420 000 c. $556 000 d. $444 444
After the business combination on the basis of full-goodwill approach, what amount of investment in Silk will be reported? (Just use what is given from the information)
a. P 0
b. P140,000
c. P150,500
d. P215,000
Chapter 5 Solutions
EBK ADVANCED FINANCIAL ACCOUNTING
Ch. 5 - Where is the balance assigned to the...Ch. 5 - Why must a noncontrolling interest be reported in...Ch. 5 - Prob. 5.3QCh. 5 - Prob. 5.4QCh. 5 - Prob. 5.5QCh. 5 - Prob. 5.6QCh. 5 - Prob. 5.7QCh. 5 - Prob. 5.8QCh. 5 - Prob. 5.9QCh. 5 - Prob. 5.10Q
Ch. 5 - Under what Circumstances would a parent company...Ch. 5 - Prob. 5.12QCh. 5 - Prob. 5.13QCh. 5 - Prob. 5.14AQCh. 5 - Prob. 5.15AQCh. 5 - Consolidation Worksheet Preparation The newest...Ch. 5 - Prob. 5.2CCh. 5 - Prob. 5.3CCh. 5 - Prob. 5.4CCh. 5 - Prob. 5.1.1ECh. 5 - Prob. 5.1.2ECh. 5 - Prob. 5.1.3ECh. 5 - Prob. 5.1.4ECh. 5 - Prob. 5.2.1ECh. 5 - Prob. 5.2.2ECh. 5 - Prob. 5.2.3ECh. 5 - Prob. 5.2.4ECh. 5 - Prob. 5.2.5ECh. 5 - Prob. 5.8.1ECh. 5 - Prob. 5.8.2ECh. 5 - Prob. 5.8.3ECh. 5 - Prob. 5.8.4ECh. 5 - Prob. 5.8.5ECh. 5 - Prob. 5.8.6ECh. 5 - Prob. 5.8.7ECh. 5 - Prob. 5.21.1PCh. 5 - Multiple-Choice Questions on Applying the Equity...Ch. 5 - Prob. 5.21.3PCh. 5 - Prob. 5.21.4PCh. 5 - Prob. 5.27PCh. 5 - Income and Retained Earnings Quill Corporation...Ch. 5 - Prob. 5.35PCh. 5 - Prob. 5.36PCh. 5 - Prob. 5.37PCh. 5 - Prob. 5.38PCh. 5 - Prob. 5.39P
Knowledge Booster
Similar questions
- P Ltd acquired 80% of S Ltd and 30% of A Ltd in June 20x7. For the year ended 31 December 20x8, S Ltd reported "Profit after tax $100 million" and A Ltd reported "Profit after tax $50 million". There were no purchase price allocation issues and no intragroup transactions. The 20x8 consolidation adjusting entries for the profit after tax should be: S Ltd: Dr Non-controlling interest (CPL) $20 million, Cr Non-controlling interest (CBS) $20 million A Ltd: Dr Cash $15 million, Cr Dividend income $15 million S Ltd: Dr Non-controlling interest (CPL) $20 million, Cr Non-controlling interest (CBS) $20 million A Ltd: Dr Investment in associate $15 million, Cr Share of associate's profit $15 million O None of the listed choices. S Ltd: Dr Cash $80 million, Cr Dividend income $80 million A Ltd: Dr Cash $15 million, Cr Dividend income $15 million S Ltd: Dr Cash $80 million, Cr Dividend income $80 million A Ltd: Dr Investment in associate $15 million, Cr Share of associate's profit $15 millionarrow_forwardAfter the business combination on the basis of full-goodwill approach, what amount of total assets will be reported? (Use only the given information) a. P1,081,000 b. P1,121,000 c. P1,196,500 d. P1,231,500arrow_forwardN3. Accountarrow_forward
- If PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: REQUIREMENTS: Consolidated Equity at the date of acquisitionarrow_forwardAfter the business combination on the basis of full-goodwill approach, what amount of liabilities will be reported? a. P265,000 b. P436,500 c. P622,000 d. P701,500arrow_forwardOn January 1, 2010 Hand acquires 100% of Finger in a statutory merger. At acquisition date the following were the book values and fair values of fixed assets of these two companies: Book Value. Fair Value Hand 900,000 800,000 Finger 200,000 300,000 a. What is consolidated fixed assets under the acquisition method b. What is consolidated fixed assets under the purchase method c.What is consolidated fixed assets under the pooling of interests method thank youarrow_forward
- Take care of plagiarism.arrow_forwardb. Prepare all consolidation entries needed to prepare consolidated statements for 20X5. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.a. Prepare all journal entries that Pizza recorded during 20×5 related to its investment in Slice. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction listPizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $151,000. On that date, the fair value of the noncontrolling interest was $37,750, and Slice reported retained earnings of $46,000 and had $95,000 of common stock outstanding Pizza has used the equity method in accounting for its investment in Slice. Trial balance data for the two companies on December 31, 20X5, are as follows: Item Pizza Corporation Slice Products Company Debit Credit Debit Credit Cash and Receivables $ 86,000 $ 67,000 Inventory 277,000…arrow_forwardPlease help mearrow_forward
- 4-On January 2, 2019, Moonshine, Inc. acquired Cambridge as a wholly-owned subsidiary, paying an excess of $400,000 over the book value of Hudson's net assets. One-half of the excess was attributable to equipment with a 4-year life, leaving the remainder as goodwill. The parent uses the equity method of pre-consolidation Equity investment bookkeeping. The 2020 financial statements for the two companies are presented below. Moonshine, Inc. Cambridge Sales $2,500,000 $600,000 Cost of goods sold -1,800,000 -350,000 Gross profit 700,000 250,000 Operating expenses -386,000 -82,000 Equity income 118,000 0 Net Income $432,000 $168,000 Retained Earnings, 1/1/20 $2,400,000 $160,000 Net income 432,000 168,000 Dividends -103,000 -19,500 Retained Earnings, 12/31/20 $2,729,000 $308,500 Cash and receivables $1,250,000 $47,500 Inventory 1,540,000 98,000 Equity…arrow_forwardGive me correct answer with explanation.jarrow_forwardIf PROMDI Co., a new company would acquire the net assets of CARDO Co and SYANO Co. PROMDI Co will be issuing 30,000 shares to CARDO and 12,000 shares to SYANO. The following is the balance sheet of PROMDI Co, followed by the fair values and additional unpaid costs incurred by PROMDI in the acquisition: REQUIREMENTS:A. GoodwillB. Consolidated Total Assets at the date of acquisitionC. Consolidated Total Liabilities at the date of acquisitionD. Consolidated Equity at the date of acquisitionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
