ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
Author: Christensen
Publisher: MCG
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Chapter 5, Problem 5.20P

a

To determine

Introduction: Immediately after a business combination, the parent company records income and dividends from the subsidiary using the equity method. In addition, parents must also write off a portion of the differential of the excess acquisition price. Further, all the intercompany transactions must be eliminated before the preparation of consolidated financial statements.

The amount did P pay for the shares if no goodwill and no gain on bargain purchase is reported.

b

To determine

Introduction: Immediately after a business combination, the parent company records income and dividends from the subsidiary using the equity method. In addition, parents must also write off a portion of the differential of the excess acquisition price. Further, all the intercompany transactions must be eliminated before the preparation of consolidated financial statements.

The amount P pays for the share if non-controlling interest at acquisition is $54,000 and goodwill is $40,000

c

To determine

Introduction: Immediately after a business combination, the parent company records income and dividends from the subsidiary using the equity method. In addition, parents must also write off a portion of the differential of the excess acquisition price. Further, all the intercompany transactions must be eliminated before the preparation of consolidated financial statements.

The amount non-controlling interest in consolidated balance sheet if P pays $73,200

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Chapter 5 Solutions

ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS

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