Which of the following situations is viewed as the parent having treasury stock? a. A owns 80% of B and 20% of C; B owns 70% of C. b. A owns 80% of B, and B owns 20% of A. c. A owns 80% of B, and B owns 70% of C. d. None of the above.

Which of the following situations is viewed as the parent having treasury stock? a. A owns 80% of B and 20% of C; B owns 70% of C. b. A owns 80% of B, and B owns 20% of A. c. A owns 80% of B, and B owns 70% of C. d. None of the above.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter20: Corporations And Partnerships

Section: Chapter Questions

Problem 42P

See similar textbooks

Related questions

Q: From the following, calculate the cost of ending inventory and cost of goods sold for the…

A: Inventory is one of the important current asset of the business. It can be valued by many methods…

Q: (a) Elucidate price and output determination under any two non-collusive models of Oligopoly.

A: The word oligopoly is derived from a combination of 2 Greek words; 'oligos' which means "few" and…

Q: Ratio Analysis Formula current Current ratio assets/ Current liabilities Account Net sales/ Receivab…

A: There are two companies AIOTHAIM and Panda Inc. Comparing ratios between these two companies. (1)…

Q: Benjamin is a taxpayer who qualifies because he has the following dependents: 17-year-old child…

A: The question is related to taxation. The credit amount is up to $3,600 (previously it was $2000)…

Q: The direct material quantity variance last month in the production of nail filers by Rudman Pte Ltd.…

A: Standard price = DM quantity variance / (Standard quantity - Actual quantity) = $1,494 / (70,200 -…

Q: vidends Per Share eventy-Two Inc., a developer of radiology equipment, has stock outstanding as…

A: The dividend per share is calculated as total dividend divided by number of shares outstanding. The…

Q: Dickonson Products is a division of a major corporation. The following data are for the last year of…

A: Given data:

Q: Accounting Richard Tandy Company reported the following balances at December 31, 2019: common stock…

A: The ratio analysis helps to analyse the financial statements of the business on regular basis.…

Q: Balance Sheet Data Accounts receivable Allowance for doubtful accounts Net accounts receivable…

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

Q: Alpha Corporation owns 100% of Beta Corporation. Beta Corporation owns 100% of Omega Corporation…

A: Net Operating Losses: Net Operating Losses are the amounts arises when the total deductions are…

Q: These items are taken from the 2020 trial balance of Suarez Inc. (Assume no taxes): Accounts payable…

A: SUAREZ INC Multi step…

Q: This question is from part B. a. The going rate on student loans is quoted as 8 per cent APR. The…

Q: If total costs remain the same, the smaller the proportion of fixed costs in a firm's cost structure…

A: Under Marginal costing (variable costing) contribution percentage or contribution per unit of…

Q: Stitch Ships Inc. has the following inventory purchases during the fiscal year ended December 31,…

A: Perpetual inventory system is that system, under which all purchases and sales related to inventory…

Q: This active lease has installments that are not evenly distributed over the lease period. That the…

A: Given, Payment in first year $14000 total payments over the five-year lease term…

Q: The financial staff of Cairn Communications has identified the following information for the first…

A: Operating Cash Flow: Operating cash flow, often known as OCF, refers to the amount of cash that is…

Q: Net income (under absorption costing) $ 400,000 Sales $3,400,000 Fixed factory overhead $ 600,000…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: COST ACCOUNTING - Process Costing Make a table for the solution. Compute for the equivalent…

A: The equivalent units are calculated on the basis of percentage for the completion of the work during…

Q: Tallent, Inc. has outstanding convertible bonds with $20 million face value, $19.5 million book…

A: When bonds are converted into equity shares then the book value of the bond is debited and stock…

Q: . On January 1, 2021, Bean Counters Co. issued a $10 million, 8%, nine-year convertible bond with…

A: Initial measurement: 8% Convertible bonds = $9,400,475 Equity component = Issue proceeds -…

Q: Belfast Inc. prints calendars. All direct materials are included at the inception of the printing…

A: The equivalent units are calculated on the basis of percentage of the work completed during the…

Q: omplete the FWT column (wage-bracket method) and SWT column of the payroll register using the…

A: Federal withholding tax is the amount of tax that is withheld by the employer from the pay of the…

Q: The joint process from which Ple'egrea, Inc. obtains both Nuts and Bolts has a total cost of $74,000…

A: Allocation of Joint Cost: To calculate the cost per unit of output using this approach, just divide…

Q: ABC’s property originally cost £300,000. After 10 years use it was revalued by £200,000. This…

A: Original Cost = 300000 Depreciation @ 2% 10 Years Depreciation = 300000*2%*10 = 60000

Q: Mary Jane started her own service company. She invested 3,000,000 cash to open the business and has…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Any businesses that have charitable commitments can also meet their financial and legal obligations.…

A: marginal costing is easy to operate, under this method there is no need to computing under or over…

Q: he Federal Reserve decided to buy bonds in order to bring the economy back to full employment. This…

A: Federal Reserves decided to buy bonds in order to bring the economy back to full employment. In…

Q: ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65.…

A: The initial cost is the total cost that is associated with the purchase price of an asset. The…

Q: Explain the process of depreciation.

A: The depreciation is charged on fixed assets by the business to expense the value of fixed assets…

Q: Explain why accurate accounting information and audited financial statements are important.

A: Accounting- Accounting is the process of collecting unorganised information, analysing it, arranging…

Q: The accounting records of Bass SARL contain the following information: Raw Materials Used: $68,479…

A: The cost of goods manufactured is the total value incurred for manufacturing the products. It is a…

Q: How else would you try comparing the income taxation of estates and accepts

A: Generally, trust property generates income. Income can be taxed differently depending on who…

Q: Different FIFO inventory assumptions: Beginning inventory of 10 units @ $5 = $50 Purchases month…

A: Introduction: Under FIFO inventory method, goods which have come first will be available for sell…

Q: What are Fixed assets?

A: The assets are classified as current assets and fixed assets. The current assets are the assets…

Q: Solve for the (1) in the blank Assume that you save 22,000USD to keep on the 1st day of every month…

A: Simple interest can be defined as the amount of interest to be computed on the original contribution…

Q: ABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated…

A: Given, 1/1/18 - purchased equipment worth P2200000. residual value = P200000. estimated useful life…

Q: Consider a machine which costs $115,000 now and which has a useful life of seven years. This machine…

A: The following the information in the question: 1. Machine which costs $115,000 2. Useful life of…

Q: Investment required in equipment. Annual cash inflows... Salvage value Life of the investment.…

A: A simple rate of return is calculated by deducting the depreciation from the annual cash flow and…

Q: Explain certified public accountant (CPA).

A: Accountant refers to the professional who performs the accounting functions like financial statement…

Q: 2. Ann Marie Roopchand Company has forecast its sales as follows: $180,000 (actual) August September…

A: Budgets are made to determine the expected cash receipts and expected cash expenses to be incurred…

Q: Age Pension Calculations - Asset Test Joseph (age 69) and Klarina (age 67) are Age Pensioners. Their…

A: Age pension- asset test is a test that an individual can conduct to judge whether he is eligible to…

Q: The following provides information on the segments that have been identified by Bernard Productions:…

A: For good reason, many company owners prioritize revenue. Getting money flowing into your business is…

Q: May and Jun are partners with profit and loss ratio of 50:50 and capital balances of $5,400,000 and…

A: Partnership is one of the agreement or arrangement between two or more than two persons, under which…

Q: Lusaka Rock buster has recently purchased an item of earth moving plant at a total cost of K24…

A: The above scenario related to IAS 16 - Property Plant And Equipment The principal issues in…

Q: On May 1, 2022, FDN Trading accepted a 120-day, 8% P60,000 note from ABC Co. 30 days after, FDN…

A: Let's understand some basics Notes are usually discounted with recourse, when it is discounted with…

Q: Dollar Dress Shop’s inventory at cost on January 1 was $82,800. Its retail value was $87,500. During…

Q: Which of the following choices correctly denotes factors that can influence a company's pricing…

A: Pricing a product or service is an important task for every organisation. It is the basis for the…

Q: nd Carl invested P300,000 each, in a partnership. They share in the profits as folla % interest on…

A: Carl and Ben are having equal share in the profit. From the total profit we deduct interest on…

Q: An

Q: A active lease involves obligations that are not evenly distributed over the lease period. That the…

A: Given, Payment in first year $14000 total payments over the five-year lease term $120000…

Question

15. Which of the following situations is viewed as the parent having treasury stock?

a. A owns 80% of B and 20% of C; B owns 70% of C.

b. A owns 80% of B, and B owns 20% of A.

c. A owns 80% of B, and B owns 70% of C.

d. None of the above.

Definition Definition Stock repurchased from the stockholders by the company that once issued it. The repurchase of the stock reduces the stockholder's equity balance on the balance sheet. Treasury stocks are an important constituent of stockholder's equity but do not carry any voting rights.

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

4. Assume that the entity is a medium-size and the company policy is to account this type of investment at fair market value, how much investment income should be reported by Jessa Company for 2021? Chevy Company owns 50% of another entity’s preference share capital and 40% of its ordinary share capital. The investee’s share capital outstanding at December 31, 2021 include P5,000,000 of 10% cumulative preference share capital and P10,000,000 of ordinary share capital. The investee reported net income of P6,000,000 for 2021. No dividend was declared for both preference and ordinary share in 2021
Head owns 80% of Shoulders. Head reports Dividends of $300,000. Shoulders reports Net Income of $500,000 and Dividends of $100,000. d. How much dividends go to the noncontrolling interest shareholders ? e Are the dividends paid to the NCI shareholders an increase or reduction to NCI in stockholders equity ?
Which of the following scenario not demonstrate significant influence? Yijin Co. who owns 30% of the convertible preference shares of HeeDo Co. GHI Co. who owns 15% of the voting shares of JKL Co. ABC Co. who owns 30% of the voting shares of DEF Co. a. I only b. II only c. III only d. I and II
11. The following data of Slapshock Corporation as of December 31, 2019 showed the following: Preference share capital, P 100 par P 820,000; Ordinary share capital, P 30 par, 300,000 shares authorized, 100,000 shares issued and outstanding P3,000,000; Preference share premium P410,000; Ordinary share premium P3,300,000. What was the original issue price per share of preference share capital? Using data in no. 11, what was the original issue price per share of ordinary share capital? Using data in no. 11, how many shares of preference share capital were issued and outstanding as of December 31, 2019?
Assume the same information as in question (16) except that Metcalf issues a 10 percent stock dividend instead of selling new shares of stock. How does this transaction affect the business combination?
17. Braaf Ltd has 100,000 shares on issue currently trading at $40 per share and is trying to determine whether they should distribute $100,000 in excess cash via dividends or via a share repurchase. Rodney owns 1,000 shares in Braaf Ltd and could use $1,000 of cash at the moment. Assuming perfect capital markets, free of taxes, information costs, transaction costs etc., demonstrate why Rodney’s financial position should be unaffected by Braaf Ltds’ decision to pay the dividend, repurchase the shares or do neither.
If the ownership of a closely held company is less than 50% of the outstanding stock, then the ownership is termed a: Question 20 options: a) minority interest. b) marketable asset. c) block asset. d) blockage discount. e) majority interest.
The Daddy Group has the following group structure:Daddy Ltd80% 80% 27%Son 1 Ltd Son 2 Ltd Son 3 Ltd70% 55%30 %Son 4 Ltd Son 5 Ltd10% 5% 45% 95%Son 6 Ltd Son 7 Ltd(a) Reproduce and complete the following controlling and non-controlling interest table. Show your calculations.(b) What percentage of the voting in Son 7 Ltd will be controlled by the Daddy Ltd? (c) What percentage of the dividend declared by Son 7 Ltd will be received by the Daddy Ltd? Daddy Interest
Jacobson Company is considering an investment in the common stock of Biltrite Company. What are the accounting issues surrounding the recording of income in future periods if Jacobson purchases: a. 15% of Biltrite’s outstanding shares. b. 40% of Biltrite’s outstanding shares. c. 100% of Biltrite’s outstanding shares. d. 80% of Biltrite’s outstanding shares.
Wixi Co. has the following equity investments in FSN, DELL, and ATI. (1) Which of these companies are subsidiaries of Wixi? (2) How are individual assets and liabilities of a parent and its subsidiary(ies) reported on a balance sheet? FSN stock: Wixi owns 70% of the voting common stock and has controlling influence. DELL stock: Wixi owns 5% of the voting common stock and has insignificant influence. ATI stock: Wixi owns 30% of the voting common stock and has significant influence.
The Daddy Group has the following group structure:Daddy Ltd80% 80%27%Son 1 Ltd Son 2 Ltd Son 3 Ltd70% 55%30 %Son 4 Ltd Son 5 Ltd10% 5% 45% 95%Son 6 Ltd Son 7 Ltd(a) Reproduce and complete the following controlling and non-controlling interest table. Show your calculations. (b) What percentage of voting in Son 7 Ltd will be controlled by Daddy Lt(c) What percentage of the dividend declared by Son 7 Ltd will be received by Daddy Ltd?