Answered: When an indirect ownership is present,…

When an indirect ownership is present, why is a specific ordering necessary for determining the incomes of the component corporations?

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter9: Accounting For Purchases And Cash Payments

Section9.1: Subsidiary Ledgers And Controlling Accounts

Problem 3AYU

See similar textbooks

Related questions

Q: Describe how corporations finance their operations.

A: Corporations is one of the forms of business entity that has separate legal entity (i.e.) that is…

Q: What limitations are S-corporations subject to?

A: S corporation is referred to as the corporation, which are treated regarding the federal tax…

Q: By definition, which of the following represents the owners of a corporation? Your answer: O…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: the difference between a Corporation, Partnership, and P

A: There are three different forms of organization and each have own advantages and suitable for…

Q: Explain common forms of business ownership—soleproprietorship, partnership, and corporation—and…

A: A form of business that is owned and controlled by an individual and does not have a separate legal…

Q: ■ What are the key differences between proprietorships, partnerships,and corporations? Be sure to…

A: Introduction: Sole proprietorship: Sole proprietorship is a type of business in which a person…

Q: Which characteristics distinguish a corporation's shareholders from the characteristics of its…

A: Characteristics distinguish a corporation's shareholders from the characteristics of its partners:

Q: What is book value per share and how does the corporation compute for the book value for each class…

A: Shares can be categorized mainly in two class one is equity or ordinary shares and other one is…

Q: What are the characteristics of corporations?

A: A corporation refers to a separate legal entity which is legally a different person from the people…

Q: Distinguish between paid-in capital and retained earningsof a corporation. Why is such a distinction…

A: Paid-in capital and retained earnings are the two main categories of stockholders' equity.

Q: Which forms of business organization, ownership is readily transferable? a. Corporation b. Sole…

A: The forms of business organizations consists of corporation, sole proprietorship, limited liability…

Q: Elaborate the agency problem on corporation with smaller percentage of individual onwership

A: An agency dilemma is a conflict of interest that exists in every connection in which one person is…

Q: When selecting the most appropriate choice of business structure, some elements to consider are: A.…

A: Business structure is the outer framework of the business i.e. how the business is incorporated,…

Q: What are the benefits of the corporation in comparison with the partnership and proprietorship…

A: A corporation is a separate legal entity owned by the shareholders, who profit from the company's…

Q: Please concisely explain how the excess investment cost over book value is allocated. When is the…

A: 1. The excess cost of investment over book value can be allocated through the process of…

Q: similarities between income taxation and business taxation?

A: Income taxation and business taxation are terms used related to taxation.

Q: Define corporation and explain the effects of the continuous inoperation of a corporation.

A: Corporation: A corporation is a legal entity that exists independently of its owners and has its own…

Q: Evaluate the similarities and differences between trusts and corporations. In an attempt to protect…

A: A legal entity acting as an agent of the individual or entity just to manage the assets and transfer…

Q: When an indirect ownership is present, why is a specific ordering necessary for determining the…

A: Please find the answer to the above question below:

Q: Which of the following describes a corporation?

A: Corporation: A corporation is a business entity that is established through a process of law, i.e.,…

Q: How it's GAAP and IFRS is suitable for Corporate Entities ?

A: The primary difference between the two systems is that GAAP can be called rules-based whereas IFRS…

Q: Which descriptor relates to the imcome approach for valuing corporations?

A: Income capitalization approach or income approach is defined as the type of the appraisal method or…

Q: What are the types of corporations?

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Differentiate between closely held and publicly owned corporations.

A: Any business with only a small number of stockholders is a closely held business. Its stocks are…

Q: explain the difference between the net income and net income available for common shareholders.

A: Introduction:- i)Net income means as follows under:- Net income means deduction of all expenses…

Q: The economic entity assumption requires that the activities Select one: a. of a sole proprietorship…

A: The economic entity is an accounting assumption followed by every organization. According to this…

Q: a. What are the pros and cons of incorporating the business as regards taxation? b. Assume that the…

Q: Why is the allocation of the income tax expense figure between the members of a business combination…

A: The allocation of the income tax expense figure between the members of a business combination is…

Q: Describe the ideas and valuation techniques that underpin the acquisition method of accounting for…

A: This question explains about the ideas and valuation techniques that underpin the acquisition method…

Q: How does The Model Business Corporation Act designed to serve?

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Does appraisal right of any stockholder when the corporation is buying or acquiring another…

A: Appraisal right refers to the right of the shareholder to seek fair valuation of the shares owned…

Q: Which of the following Is not required to use IFRS? Multiple Choice O Publically traded company O…

A: IFRS stands for International financial reporting standards. These are Accounting standards issued…

Q: how do owners’ equity accounts in a corporation differ from those in a sole proprietorship or…

A: Stockholder’s equity: It refers to the amount of capital that includes the amount of investment by…

Q: Business income allocations from an S corporation to its shareholders are self- employment income to…

A: The S-corporation is a special type of corporation in which all the income, gains, and losses of the…

Q: For what reasons might a corporation purchase its ownstock?

A: Treasury stock: The shares which were reacquired or bought back by the company, but not formally…

Q: In most large corporations, ownership and management are separated. What are the main implications…

A: In the corporate world, the shareholders are the owners of the firm, they select the board of…

Q: What are the two sources of Ownership interests of shareholders?

A: Shareholders are those persons who purchases shares from the company and becomes owners of some…

Q: How do S Corporations report separately separately stated items?

A: The income losses, gains, deductions, and credit are passed by the corporation S to its shareholders…

Q: What are the two particular business structures have evolved in response to liability issues and tax…

A: In response to the issue of liability and tax treatments the two business structures that were…

Q: lain what is corporation with sole proprietorship?

A: The ownership model establishes the relationship between a team's freedom and maturity.. Some of the…

Q: Describe the differences between a Subchapter S corporation and a Subchapter C corporation.

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Define what a corporation is, the types that exist and their characteristics.

Question

When an indirect ownership is present, why is a specific ordering necessary for determining the incomes of the component corporations?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

When an indirect ownership is present, why is a specific ordering necessary for determining the incomes of the component corporation?
At which entities do Corporate income overlap with Individual income taxation and in which states?
Which of the following statements are true regarding corporations?
Are the stockholders of a corporation are considered as residual claimant of the business enterprise?
How does the principal-agent problem affect the corporation? Explain by points
The economic entity assumption requires that the activities Select one: a. of a sole proprietorship cannot be distinguished from the personal economic events of its owners. b.of an entity be kept separate from the activities of its owner. c. of different entities can be combined if all the entities are corporations. d.must be reported to the Securities and Exchange Commission.
Distinguish between corporations and sole proprietorshipsin terms of the following characteristics:a. Owners’ liability for debts of the business.b. Transferability of ownership interest.c. Continuity of existence.d. Federal taxation on income.
Determine the net income attributable to P Corporation.
Which of the following is not a characteristic of a corporation? a.Corporations experience an ease in obtaining large amounts of resources by issuing stock. b.Corporations are organized as a separate legal taxable entity. c.Ownership is divided into shares of stock. d.A corporation's resources are limited to its individual owners' resources.