Advanced Accounting
14th Edition
ISBN: 9781260247824
Author: Joe Ben Hoyle, Thomas F. Schaefer, Timothy S. Doupnik
Publisher: RENT MCG
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Chapter 5, Problem 9Q
To determine
Explain whether the profit permanently eliminated from the non-controlling interest, or it merely shifted from one period to the next.
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How should negative goodwill be shown on the consolidated financial statements of the acquirer?
Group of answer choices
As a liability on the statement of financial position
As a loss on the statement of comprehensive income
As a separate amount under shareholders' equity on the statement of financial position
As a gain on the statement of comprehensive income
Which of the following items shall be cancelled on consolidation?
a.
Receivables related to intra-group sales
b.
Payables related to intra-group purchases
c.
Unrealised profit on intra-group transactions
d.
Loans related to intra-group lending
e.
All of the above
When do companies break apart a sale and treat its parts differently for purposes of recognizing revenue?
Chapter 5 Solutions
Advanced Accounting
Ch. 5 - Prob. 1QCh. 5 - Prob. 2QCh. 5 - Prob. 3QCh. 5 - Prob. 4QCh. 5 - James, Inc., sells inventory to Matthews Company,...Ch. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - Prob. 8QCh. 5 - Prob. 9QCh. 5 - Prob. 10Q
Ch. 5 - Prob. 11QCh. 5 - Prob. 12QCh. 5 - Prob. 13QCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3PCh. 5 - Prob. 4PCh. 5 - Prob. 5PCh. 5 - Prob. 6PCh. 5 - Prob. 8PCh. 5 - Prob. 11PCh. 5 - What is the total of consolidated cost of goods...Ch. 5 - Prob. 13PCh. 5 - Prob. 14PCh. 5 - Prob. 15PCh. 5 - What is the consolidated total for inventory at...
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- Hi, may i know more clearer explanation to calculate the gain or loss on the disposal of the share between parent and subsidiaries ? plagiarism is not allowed.arrow_forwardIn a transaction accounted for using the acquisition method where consideration transferred is less than fair value of net assets acquired, which statement is true? Multiple Choice Negative goodwill is recorded. A deferred credit is recorded. A gain on bargain purchase is recorded. Long-term assets of the acquired company are reduced in proportion to their fair values. Any excess is recorded as a deferred credit. Long-term assets and liabilities of the acquired company are reduced in proportion to their fair values. Any excess is recorded as gain.arrow_forwardThe adjusting entries for unrealised profit arisen from trading of goods betweenparent and wholly owned subsidiary. give the journal : If the seller is parent If the seller is subsidiaryarrow_forward
- General Accountingarrow_forwardWhich of the following accounting treatments for costs related to business combination is incorrect? Group of answer choices The costs related to issuance of financial liability at fair value through profit or loss shall be recognized as expense while those related to issuance of financial liability at amortized cost shall be recognized as deduction from the book value of financial liability or treated as discount on financial liability to be amortized using effective interest method. The costs related to issuance of stock or equity securities shall be deducted/debited from any share premium from the issue and any excess is charged to “share issuance cost” reported as contract-equity account against either (1) share premium from other share issuances or (2) retained earnings Acquisition related costs such as finder’s fees; advisory, legal, accounting, valuation and other professional and consulting fees; and general administrative costs, including the costs of maintain an…arrow_forwardWill the decision about the transfer price affect consolidated net income? Which method would be easiest for the company's accountant to administer? As the company's accountant, what advice would you give to these officials?arrow_forward
- What is the noncontrolling interest in Subsidiary income? Select one: a. The portion of Subsidiary income that is not included in consolidated income b. The allocation of difference between fair value and book value c. The difference between Parents reported income and Subsidiary reported income d. The part of Subsidiary income that is owned by shareholders other than Parentsarrow_forwardStatement 1: Consolidated operating expenses will not be affected, in any capacity,by an intercompany sale ofland.Statement 2: Consolidated operating expenses will not be affected, in any capacity, by an intercompany sale ofmerchandise A.Only statement 1 is trueB.Both TrueC.Only statement 2 is trueD.Both Falsearrow_forwardStatement 1: Consolidated operating expenses will not be affected, in anycapacity, by an intercompany sale ofland.Statement 2: Consolidated operating expenses will not be affected, in anycapacity, by an intercompany sale ofmerchandise a.Only statement 2 is trueb.Both Falsec.Both Trued.Only statement 1 is truearrow_forward
- Do you agree with the accounting treatment that Overstock typically applied to the revenues generated by its "Partner" line of business? Why or why not?arrow_forwardNeed Answerarrow_forwardWhich of the following is not a sale and therefore is not subject to the value-added tax? Transfer, use or consumption not in the ordinary course of business of goods or properties ordinarily intended for sale or use in the course of business. Distribution or transfer to shareholders or investors of share in the profits of a VAT-registered person. Distribution or transfer to creditors in payment of debt. Consignment sales.arrow_forward
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