A consolidation must be prepared whenever financial statements are issued.
Q: Identify factors in an ethical decision. Jim Sandrolini is an accountant for a local manufacturing…
A: Accounting: Business ethics are business policies and practices which are made to conduct a…
Q: - - Business Course MICA DANCE STUDIO Trial Balance June 30 Cash Accounts Receivable Piano Accounts…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Cavy Company estimates that the factory overhead for the following year will be $2,139,000. The…
A: Lets understand the basics. When applied overhead is more than the actual overhead then overhead is…
Q: Proof of Cash Problems 1. Lazer Company had the following bank reconciliation on June 30: Balance…
A: Disclaimer : Hello. Since your question has multiple sub-parts, we will solve the first three…
Q: A company had stock outstanding as follows during each of its first three years of operations: 1,000…
A: Cumulative Preferred Stock :— It is a type of preferred stock in which any past arrear of dividend…
Q: In July 2022, Thembi presented data in Table 3 for her cost center in budget costing: Table 3:…
A: Overhead absorption rate :— It is the estimated overhead rate which is used to apply overhead to…
Q: Down Under Boomerang, Inc., is considering a new 3-year expansion project that requires an initial…
A:
Q: ints) During 2021, Querido Co. reported net income of $337,000. The company also reported the…
A: Cash flow from operation is a part of the cash flow statement that shows the net cash flow from the…
Q: Why is time value of money important in accounting? Specifically, what accounting principles would…
A: As per the concept and theory of time value of money the worth of money is never the same; it…
Q: A company that manufactures and sells a single product. Unit sales for each of the four quarters of…
A: Net Income=Sales-Total CostsProfit margin=Net IncomeSales×100
Q: Prepare a journal entry on August 13 for cash received for services rendered, $10,150. Refer to the…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in…
A: Section 179 Expenses for the year 2021 Instead of capitalizing and depreciating the asset over time,…
Q: Selected account balances before adjustment for Intuit Realty at November 30, the end of the current…
A: Comment - Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Multi-step Income Statement From the following accounts, listed in alphabetical order, prepare a…
A: An income statement is one that is prepared as a part of a financial statement under which all the…
Q: Model N 800 XL Model N 500 Activity Cost Pool Machine setups Special processing General factory…
A: Introduction: The total cost incurred by a company to start manufacturing, store, and sell one unit…
Q: Mr. Nauma Akon has an industrial land located in a province with a fair market value of ₱2 million.…
A: Real Property Tax (RPT) is levied on 50% of market value of property Special education Fund is…
Q: Simmons Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable;…
A: Each entry in the journal provides information that is pertinent to a single business transaction.…
Q: How to make monthly cash flow statement in Excel. Give me an example.
A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…
Q: . Compute the maximum 2021 depreciation deductions, including §179 expense, but now assume that…
A: Given that karane enterprise a calendar year manufacturer based in college station texas began…
Q: Im trying to complete a income statement a balance sheet and statement of owners equity t balance…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Which of the following QBO features can be used to save a transaction that will be re-used in the…
A: Introduction:- QBO means Quick book online. It is an accounting software. It is very easy to use…
Q: Exercise 8-20 Difference in Operating Income under Absorption and Variable Costing (LO 8-1, 8-4)…
A: As per the variable costing method only variable cost is considered in the product cost. only…
Q: You are the management accountant of T Ltd. The following computer printout shows details relating…
A: Answer - “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: carrybacks).
A: In this question, we have to calculate the taxable income of 2021
Q: Answer part C only The following information was obtained from the financial statements of X Inc.…
A: Defined Benefit Plan - Defined Benefit Plans are pension plans that provide benefits to employees…
Q: Presented below are two independent situations. (Credit account titles are automatically indented…
A: Journal Entry :— It is an act of recording transaction in books of account when it is occurred.…
Q: Write a short email to the board of directors explaning to them three examples of the judgement…
A: Accounting System- A business's income, expenses, and other financial activities, such as its…
Q: On November 10, JumpStart Co. provides $2.170 in services to clients. At the time of service, the…
A: The company reports the income on an accrual basis. The income will be reported in books during the…
Q: ing is a list elect Company Accounts and Additional Information: Account Name unadjusted account…
A:
Q: Division A has the capacity to produce 120,000 units. The normal selling price of each unit is P80.…
A: Lets understand the basics. Transfer price is a price at which input of one division gets…
Q: Business Combination Versus Asset Acquisition Haley Corporation pays $3,900,000 in cash to acquire…
A: There are two method to record the journal entry. Business Combination Asset Acquisition In case…
Q: The debit and credit totals are not equal as a result of the following errors: a. The cash entered…
A: Trail balance is a summary of balances of all accounts in a tabular form including debit and credit.…
Q: 7 (LO 3, 4) (Adjusting Entries and Financial Statements) Rolling Hills Golf Inc. was organized on…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: CoEd Novelties manufactures key chains for college bookstores. During 2003, the company had the…
A: The cost is classifed into two catogries i,e product cost and period cost. The product cost is…
Q: A new barcode reading device has an installed cost basis of $22,820 and an estimated service life of…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Depreciation…
Q: hat the paren
A: A consolidated financial statement is inclusive of all the subsidiary companies where the owner has…
Q: M1-2 Matching Financial Statement Items to Financial Statement Categories LO1-1 Mark each item in…
A: Assets :— Assets Include Current Assets non Current Assets both. Current assets which gives Short…
Q: Kempton Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity.…
A: Bond is financial security used by organizations to raise debt funds. Bond carries fixed coupon…
Q: ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following…
A: At the time of acquisition, the accounting approach requires everything to be accounted at Fair…
Q: Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year,…
A: Accounting is the detailed process of recording, classifying, summarising and analysing business…
Q: a. A taxpayer completes $775 of accounting services in December 2021 for a client who pays for the…
A: As per the honor code of Bartleby we are bound to give the answer of first question only, please…
Q: A) Which do you think is the most important among the three inherent powers of the state? Why? B) If…
A: Tax is a compulsory payment made to the government of the country. The residents of the country are…
Q: Check All That Apply Invoice Receive Payment Pay Bills
A: Invoice and Receive payment refers to the "Customers and Sales" transaction.
Q: ● ● ● BASIC PRINCIPLES OF A SOUND TAX SYSTEM Fiscal Adequacy - sources of revenue should be…
A: There are two types of taxes levied by any government which is the main source of revenue for the…
Q: Puget World, Incorporated, manufactures two models of television sets, the N 800 XL model and the N…
A: Unit production cost is the sum of unit direct material cost, unit direct labor cost, and unit…
Q: Recomendations for fraud detection are included in SAS 99 (AU 316, and now PCAOB AS 2401). Which of…
A: Fraud detection refers to the procedure where it protects the customer as well as the information of…
Q: Blupa Ltd acquired a 25% interest in Trinity Ltd for $145,000 on 1 July 2020. At that date,…
A: Journal - A journal is a thorough account that documents all of a company's financial activities. It…
Q: 2. Chris Company presented the following bank reconciliation for the month of November: Balance per…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: Presented below are the accounts of Jam Jam Trading for the ending period of December 31, 2021.…
A: Balance Sheet :— It is one of the financial statement that shows list of assets, liabilities and…
Q: A business had the following amounts of assets and liabilities at the beginning and end of a recent…
A: Profit :— Profit are Computed by deducting Total Expenses from Net Revenue during the Period.…
(9) In an asset acquisition:
|
a. |
A consolidation must be prepared whenever financial statements are issued. |
|
b. |
The acquiring company deals only with existing shareholders, not the company itself. |
|
c. |
The assets and liabilities are recorded by the acquiring company at their book values. |
|
d. |
Statements for the single combined entity are produced automatically and no consolidation process is needed. |
Step by step
Solved in 3 steps
- In an asset acquisition: a. A consolidation must be prepared whenever financial statements are issued. b. The acquiring company deals only with existing shareholders, not the company itself. c. The assets and liabilities are recorded by the acquiring company at their book values. d. Statements for the single combined entity are produced automatically and no consolidation process is needed.Under PFRS 3, when is a gain recognized in consolidating financial information? a. In a combination created in the middle of the fiscal year b. In an acquisition when the value of all assets and liabilities cannot be determined. c. When any bargain purchased is created d. When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company.S1: Under the acquisition method, if the fair values of identifiable net assets exceed the value implied by the purchase price of the acquired company, the excess should be accounted for goodwill. S2: With an acquisition, direct and indirect expenses are considered a par of the total cost of the acquired company. Both statements are Only S1 is Only S2 is Both statements are 2. Following the completion of a business combination in the form of a statutory consolidation, what is the balance in the new corporation’s Retained earningsaccount? The acquirer retained earnings accountbalance Thesum of the acquirer and acquiree retained earnings account The acquiree retained earnings accountbalance Zero 3. S1: The acquisition-related costs in a business combination to be expensed immediately include cost of issuing debt securities. S2: In a business combination any “gain on bargain purchase” shall be recognized in other comprehensive income. Only S2 is Both statements are Both statements…
- Under PFRS 3, when is a gain recognized in consolidating financial information? Group of answer choices a.When the amount of a bargain purchase exceeds the value of the applicable liability held by the acquired company. b.In an acquisition when the value of all assets and liabilities cannot be determined. c.When any bargain purchased is created d.In a combination created in the middle of the fiscal year1. At the date of an acquisition which resulted to either goodwill or gain on bargain purchase, the acquisition method: A. Consolidates the subsidiary's assets and liabilities at book value. B. Consolidates the subisdiary's assets at fair value and libailities at book value. C. Consolidates the subsidiary's assets at book value and liabilities at fair value. D. Consolidates the subsidiary's assets and liabilities at fair value. 2. The consideration transferred in a business combination will most likely include which of the following? A. The transaction price in an arrangement that is primarily for the benefit of the acquirer or the combined entity. B. A contingent liability with an acquisition-date fair value but imposes an improbable outflow that the acquirer assumes in a business combination. C. The "off-market" value of a reacquired right. D. The acquisition-date fair value of a contingent consideration that is dependent upon the occurrence of a possible, but not probable,…1. what is the basis for consolidation?2. is goodwill being remeasured to fair value at each reporting period? if false, what is the correct answer?3.a. Before consolidation, entity A's retained is how much? 3.b.he consolidated earning is how much?this is the scenario for #3a and b:entity A acquired 90% interest in ENtity B on January 1, 20x1 when entity B's net assets had a fair value of 100. On December 31, 20x2, Entity B's net assets increased to 200 after adjustments for acquisition date fair values, net of depreciation.
- When does gain recognition accompany a business combination?a. When a bargain purchase occurs.b. In a combination created in the middle of a fiscal year.c. In an acquisition when the value of all assets and liabilities cannot be determined.d. When the amount of a bargain purchase exceeds the value of the applicable noncurrent assets (other than certain exceptions) held by the acquired company.Which of the following is incorrect regarding measurement period? a. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report in its financial statements provisional amounts for the items for which the accounting is incomplete. b. During the measurement period, the acquirer shall also recognise additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date and, if known, would have resulted in the recognition of those assets and liabilities as of that date. c. The measurement period ends as soon as the acquirer receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. d. During the measurement period, the acquirer shall prospectively adjust the provisional amounts recognised at the acquisition date…S1: The preparation of consolidated financial statements after acquisition is materially different concept from preparing them in the acquisition date in the sense that reciprocal accounts are eliminated and remaining balances are combined. S2: All revenues and expenses of individual consolidating companies arising from transactions and actions with affiliated companies are included in the consolidated financial statements. A. Only S2 is correct B. Both statements are incorrect C. Only S1 is correct D. Both statements are correct
- Statement 1: The preparation of consolidated financial statements after acquisition is materially different concept from preparing them in the acquisition date in the sense that reciprocal accounts are eliminated and remaining balances are combined. Statement 2: All revenues and expenses of individual consolidating companies arising from transactions and actions with affiliated companies are included in the consolidated financial statements. a. Only Statement 1 is correct b. Both statements are correct c. Only Statement 2 is correct d. Both statements are incorrectS1: The preparation of consolidated financial statements after acquisition is materially different concept from preparing them in the acquisition date in the sense that reciprocal accounts are eliminated and remaining balances are combined. S2: All revenues and expenses of individual consolidating companies arising from transactions and actions with affiliated companies are included in the consolidated financial statements. Only S2 is correct Both statements are correct Both statements are incorrect Only S1 is correctA company acquires a subsidiary and will prepare consolidated financial statements for external reporting purposes. For internal reporting purposes, the company has decided to apply the initial value method. Why might the company have made this decision? It is a relatively easy method to apply. Operating results appearing on the parent’s financial records reflect consolidated totals. GAAP now requires the use of this particular method for internal reporting purposes. Consolidation is not required when the parent uses the initial value method.
