Question 10
On 1/1/2017 Ziyad company purchased 90 % of Altalian company by
SR 1,250,000 ,...
Question 10
On 1/1/2017 Ziyad company purchased 90 % of Altalian company by
SR 1,250,000 , and paid SR 150,000 for commission and consulting
expenses and SR 100.000 indirect expenses for registering. The
balance sheet of Ziyad & Altalian companies on 31/12/2016
before of purchase was:
particulars
A
B (book value)
B (fair value )
Cash
Account receivables
Inventories
1,600,000
1,400,000
1,450,000
225,000
500,000
700,000
225,000
540,000
800,000
Total assets
4.450.000
1.425.000
1.565.000
Account payables
Capital
Add....
On January 1, 2014, Penelope Company acquired a 100% interest in
Leah Company for $200,000 cash....
On January 1, 2014, Penelope Company acquired a 100% interest in
Leah Company for $200,000 cash. On January 1, 2014, Leah Company
had the following assets and liabilities: Book Value Fair Value
Cash $10,000 $10,000 Accounts Receivable 30,000 35,000 Inventory
40,000 50,000 Plant Assets 60,000 80,000 Total Assets $140,000
$175,000 Liabilities $25,000 $25,000 Capital Stock 100,000 Retained
Earnings 15,000 Total Liabilities & Stockholders' Equity
$140,000 Penelope used push down accounting to account for the
acquisition. The total amount of push-down...
38) P Company purchased 90% of the common stock of S Company
on January 2, 2017...
38) P Company purchased 90% of the common stock of S Company
on January 2, 2017 for $900,000. On that date, S Company’s
stockholders’ equity was as follows:
Common stock, $20 par value $400,000
Other contributed capital 100,000
Retained earnings 450,000
During 2017, S Company earned $200,000 and declared a $100,000
dividend. P Company uses the partial equity method to record its
investment in S Company. The difference between implied and book
value relates to land.
Required:
Prepared, in general...
Consolidation Problem
On January 1 2020, Starbucks acquired 100% of Dunkin’s
outstanding common stock for $1,000,000...
Consolidation Problem
On January 1 2020, Starbucks acquired 100% of Dunkin’s
outstanding common stock for $1,000,000 in cash. As of January 1
2020, the following fair values where determined.
Dunkin’s Buildings had a FV in excess of BV of
$150,000
Dunkin’s Equipment had a FV in excess of BV of
$40,000
Dunkin had an unrecorded patent with a FMV of
$10,000
For all other Dunkin Accounts as of Jan 1, 2020, all
other GAAP book values equaled fair values.
Here...
CCC - Balance sheets 31 December 2018, 2017 assets 2018 2017
Fixed assets, net 600,000 500,000...
CCC - Balance sheets 31 December 2018, 2017 assets 2018 2017
Fixed assets, net 600,000 500,000 Inventory 70,000 50,000 Accounts
receivable, net 100,000 150,000 Cash 30,000 50,000 Total current
assets € 200,000 € 250,000 Total assets € 800,000 € 750,000 Equity
and liabilities 2018 2017 Share capital 300,000 200,000 Retained
earnings 80,000 100,000 Total equity € 380,000 € 300,000 Payable
bonds 200,000 250,000 Accounts payable 150,000 120,000 Income taxes
payable 70,000 80,000 Total current liabilities € 220,000 € 200,000
Total...
Power Corporation acquired 100 percent ownership of Upland
Products Company on January 1, 20X1, for $200,000....
Power Corporation acquired 100 percent ownership of Upland
Products Company on January 1, 20X1, for $200,000. On that date,
Upland reported retained earnings of $50,000 and had $100,000 of
common stock outstanding. Power has used the equity method in
accounting for its investment in Upland.
The trial balances for the two companies on December 31, 20X5,
appear below.
Power
Corporation Upland
Products Company
Item Debit Credit Debit Credit
Cash & Receivables $ 43,000 $ 65,000
Inventory 260,000 90,000
Land 80,000...
On January 1, 20X9, Peery Company acquired 100 percent of
Standard Company's common shares at underlying...
On January 1, 20X9, Peery Company acquired 100 percent of
Standard Company's common shares at underlying book value. Peery
uses the equity method in accounting for its ownership of Standard.
On December 31, 20X9, the trial balances of the two companies are
as follows:
Peery Co.
Standard Co.
Item
Debit
Credit
Debit
Credit
Current Assets $ 238,000
$
95,000
Depreciable Assets
300,000
170,000
Investment...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its industry.
Balance Sheets for INDUSTRY:
December 31
2017
2016
2015
ASSETS
Cash and marketable securities
$30,000
$25,000
$20,000
Accounts receivable
110,000
90,000
60,000
Inventories
100,000
80,000
80,000
Total current assets
240,000
195,000
160,000
Gross plant and equipment
250,000
220,000
200,000
Less: accumulated depreciation
−100,000
−65,000
−50,000
Net plant and equipment
150,000
155,000
150,000
Land
50,000
50,000
50,000
Total fixed assets
200,000
205,000
200,000
Total...
On January 1, 2018, Jamison Company purchased 70% of the common
stock of Kelly Corporation for...
On January 1, 2018, Jamison Company purchased 70% of the common
stock of Kelly Corporation for $455,000. The non-controlling
interest was valued at $195,000. The stockholders’ equity of both
companies is as follows:
Jamison Co.
Kelly Co.
Common Stock
300,000
200,000
Retained Earnings
400,000
450,000
The income and dividend information for both companies for 2018
is listed below.
Jamison Co.
Kelly Co.
Net Income
145,000
70,000
Dividends
50,000
40,000
Directions: Prepare any necessary consolidation entries for
2018.
On January 1, 2018, Jamison Company
purchased 70% of the common stock of Kelly Corporation for...
On January 1, 2018, Jamison Company
purchased 70% of the common stock of Kelly Corporation for
$455,000. The non-controlling interest was valued at $195,000. The
stockholders’ equity of both companies is as follows:
Jamison Co.
Kelly Co.
Common Stock
300,000
200,000
Retained Earnings
400,000
450,000
The income and dividend information for both companies for 2018
is listed below.
Jamison Co.
Kelly Co.
Net Income
145,000
70,000
Dividends
50,000
40,000
Directions: Prepare any necessary consolidation entries for
2018.