a. Explanation An acquisition of assets is the purchase of a corporation by purchasing its assets rather than its stock. An acquisition is when one company acquires most or all of the shares of another company to gain control over that company. An investment in equity is money which is invested in a company by buying that company's shares in the stock market. Typically, those shares are traded in a stock exchange. An acquisition premium is the distinction between the actual price paid to purchase a business and the pre-acquisition approximately real value of the acquired firm. It's often recorded on the balance sheet as " goodwill ." A controlling interest is a shareholding interest in a corporation with sufficient voting stock shares to take precedence in the action of any shareholder. A majority (over 50 per cent) of the voting shares is always a controlling interest. A non-controlling interest, also known as NCI or minority interest, is a stance of possession where a corporate shareholder owns less than 50% of outstanding shares and can only impact management decisions rather than controlling them. 100% AAP Amortization Amortized Allocation 2016 2017 2018 2019 Patent 252,000 25,200 25,200 25,200 25,200 Goodwill 198,000 - - - - Net 450,000 25,200 25,200 25,200 25,200 100% Unamortized AAP Unamortized Allocation 12/31/2016 12/31/2017 12/31/2018 12/31/2019 Patent 252,000 226,800 201,600 176,400 151,200 Goodwill 198,000 198,000 198,000 198,000 198,000 Net 450,000 424,800 399,600 374,400 349,200 b. To determine Calculate and organize the profits and losses on intercompany transactions and balances. c. To determine Compute the starting and ending balances of the pre-consolidation Equity Investment account starting with the equity of the subsidiary 's stockholders. d. To determine Reconstruction of the pre-consolidation activities of the parent Equity Investment T- account for the year of consolidation. e. To determine Calculate the owners' equity attributable to the starting and ending of non-controlling interest balances beginning with the owners ' equity of the subsidiary. f. To determine Calculate consolidated net income, controlling interest net income and non-controlling interest net income. g. To determine Complete the C-E-A-D-I consolidation entries and execute the consolidation worksheet.

4th Edition

ISBN: 9781618533128

Author: Halsey

Publisher: Cambridge Business Publishers

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Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 5, Problem 64P

To determine

Disaggregate and document the AAP 100 percent activity, the AAP controlling interest

and the AAP non-controlling interest.

To determine

Calculate and organize the profits and losses on intercompany transactions and balances.

To determine

Compute the starting and ending balances of the pre-consolidation Equity Investment

account starting with the equity of the subsidiary 's stockholders.

To determine

Reconstruction of the pre-consolidation activities of the parent Equity Investment T-

account for the year of consolidation.

To determine

Calculate the owners' equity attributable to the starting and ending of non-controlling

interest balances beginning with the owners ' equity of the subsidiary.

To determine

Calculate consolidated net income, controlling interest net income and non-controlling

interest net income.

To determine

Complete the C-E-A-D-I consolidation entries and execute the consolidation worksheet.

Expert Solution & Answer

Chapter 5 Solutions

ADVANCED ACCOUNTING

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - Prob. 5Q Ch. 5 - Prob. 6Q Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Ch. 5 - Prob. 11Q Ch. 5 - Prob. 12Q Ch. 5 - Prob. 13Q Ch. 5 - Prob. 14MC Ch. 5 - Prob. 15MC Ch. 5 - Prob. 16MC Ch. 5 - Prob. 17MC Ch. 5 - Prob. 18MC Ch. 5 - Prob. 19MC Ch. 5 - Prob. 20MC Ch. 5 - Prob. 21MC Ch. 5 - Prob. 22MC Ch. 5 - Prob. 23MC Ch. 5 - Prob. 24MC Ch. 5 - Prob. 25MC Ch. 5 - Prob. 26MC Ch. 5 - Prob. 27MC Ch. 5 - Prob. 28MC Ch. 5 - Prob. 29MC Ch. 5 - Prob. 30MC Ch. 5 - Prob. 31MC Ch. 5 - Prob. 32MC Ch. 5 - Prob. 33E Ch. 5 - Prob. 34E Ch. 5 - Prob. 35E Ch. 5 - Prob. 36E Ch. 5 - Prob. 37E Ch. 5 - Prob. 38E Ch. 5 - Prob. 39E Ch. 5 - Prob. 40E Ch. 5 - Prob. 41E Ch. 5 - Prob. 42E Ch. 5 - Prob. 43E Ch. 5 - Prob. 44E Ch. 5 - Prob. 45E Ch. 5 - Prob. 46E Ch. 5 - Prob. 47E Ch. 5 - Prob. 48E Ch. 5 - Prob. 49P Ch. 5 - Prob. 50P Ch. 5 - Prob. 51P Ch. 5 - Prob. 52P Ch. 5 - Prob. 53P Ch. 5 - Prob. 54P Ch. 5 - Prob. 55P Ch. 5 - Prob. 56P Ch. 5 - Prob. 57P Ch. 5 - Prob. 58P Ch. 5 - Prob. 59P Ch. 5 - Prob. 60P Ch. 5 - Prob. 61P Ch. 5 - Prob. 62P Ch. 5 - Prob. 63P Ch. 5 - Prob. 64P Ch. 5 - Prob. 65P Ch. 5 - Prob. 66P Ch. 5 - Prob. 67P Ch. 5 - Prob. 68P

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Disaggregate and document the AAP 100 percent activity, the AAP controlling interest and the AAP non-controlling interest.

Disaggregate and document the AAP 100 percent activity, the AAP controlling interest and the AAP non-controlling interest.

Calculate and organize the profits and losses on intercompany transactions and balances.

Compute the starting and ending balances of the pre-consolidation Equity Investment account starting with the equity of the subsidiary 's stockholders.

Reconstruction of the pre-consolidation activities of the parent Equity Investment T- account for the year of consolidation.

Calculate the owners' equity attributable to the starting and ending of non-controlling interest balances beginning with the owners ' equity of the subsidiary.

Calculate consolidated net income, controlling interest net income and non-controlling interest net income.

Complete the C-E-A-D-I consolidation entries and execute the consolidation worksheet.

Chapter 5 Solutions

Disaggregate and document the AAP 100 percent activity, the AAP controlling interest

and the AAP non-controlling interest.

Compute the starting and ending balances of the pre-consolidation Equity Investment

account starting with the equity of the subsidiary 's stockholders.

Reconstruction of the pre-consolidation activities of the parent Equity Investment T-

account for the year of consolidation.

Calculate the owners' equity attributable to the starting and ending of non-controlling

interest balances beginning with the owners ' equity of the subsidiary.

Calculate consolidated net income, controlling interest net income and non-controlling

interest net income.