Introduction: Consolidation is the process of combining financial results of various subsidiaries with the financial results of parent company. It is used only when parent company holds more than 50% of share of subsidiary company.
Bond: Bond is an instrument issued by the companies to fulfil their need of large amount of borrowings. It is the instrument of indebtedness where issuer is obliged to pay the interest on it.
Loss or gain on bond retirement: When a company buyback its bonds for certain purpose, then it is called bond retirement. Loss or gain in bond retirement is difference between the carrying amount of both the companies i.e. issuing company and purchasing company.
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Chapter 8 Solutions
ADVANCED FINANCIAL ACCOUNTING-ACCESS
- What was the cost of goods sold?arrow_forwardTrue option? General accountingarrow_forwardAide Industries is a division of a major corporation. Data concerning the most recent year appears below: Sales Net operating income $18,310,000 $920,000 Average operating assets $6,300,000 The division's margin-is closest to:arrow_forward
- How much will regal enterprises record as goodwillarrow_forwardWhat is the other comprehensive income?arrow_forwardCool Comfort currently sells 360 Class A spas, 520 Class C spas, and 230 deluxe model spas each year. The firm is considering adding a mid-class spa and expects that, if it does, it can sell 375 of them. However, if the new spa is added, Class A sales are expected to decline to 255 units while Class C sales are expected to decline to 240. The sales of the deluxe model will not be affected. Class A spas sell for an average of $13,500 each. Class C spas are priced at $7,200 and the deluxe model sells for $19,000 each. The new mid-range spa will sell for $11,000. What is the value of erosion? Financial Accountingarrow_forward
- Goodwill if any is recorded atarrow_forwardInventory:25000, Accounts payable:16000arrow_forwardMenak Industries purchases a machine at the beginning of the year at a cost of $40,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 10 years with a $6,000 salvage value. The book value of the machine at the end of year 3 is _.helparrow_forward
- What is the cost of goods manufactured?arrow_forwardBuilding from the Module 2 Critical Thinking assignment about your company’s water purification product and Nigerian market, research the components needed to build the product. Use the following questions to guide your decisions about production and components, respond to the following topics for this week’s critical thinking assignment. What does nigeria produce and export? What does nigeria import; what are the imports used for? To what degree does nigeria have relevant and cost-effective component manufacturing capabilities? Does nigeria have relevant and cost-effective manufacturing/assembly capabilities to create products of acceptable quality? If nigeria does not have relevant component and manufacturing skills, where will the water purification components/devices be sourced from given the target country’s trade agreements? How do trade profiles and trade relationships enter into your decision about manufacturing locations? Include relevant theories and concepts related…arrow_forwardFind five credible external sources to support the ideas on the below paper and write the annotation should have two parts: a summary of the source’s main idea and conclusions, then a discussion of how you are going to use it in your Portfolio Milestone. Make sure to Create an APA7-formatted reference citation for each source. The theory in question is the Intercultural Communication Theory. This theory, according to credible sources such as the International Journal of Business Communication, is a framework for understanding and managing communication between people from different cultural backgrounds. It originated from the need to facilitate better communication and understanding in diverse settings, and has evolved to its current status as a critical tool in various fields, including business, medicine, and education. In the field of business, the Intercultural Communication Theory can help individuals better work in intercultural settings by enhancing their…arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
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