FUNDAMENTALS OF ADVANCED ACCOUNTING >I
FUNDAMENTALS OF ADVANCED ACCOUNTING >I
6th Edition
ISBN: 9781307007350
Author: Hoyle
Publisher: MCG/CREATE
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Chapter 2, Problem 17P

On its acquisition-date consolidated balance sheet, what amount should TruData report as common stock?

  1. a. $70,000
  2. b. $300,000
  3. c. $350,000
  4. d. $370,000
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At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000.  Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000
A, B, C, and D are companies to be combined. Just prior to the combination, their individual stockholder’s equity consists of the following balances:Company A is the surviving entity. It issued 20,000, P69 par value ordinary shares, with FMV of P91; dispersed to the stockholders of the acquired companies. 1. How much goodwill is to be recognized assuming that the net assets are fairly valued?a. P 845,000.00b. P 695,000.00c. P 485,000.00d. P 440,000.00 2. Following the problem above, how much is the Share Premium of the combined entity after the combination?a. P 845,000.00b. P 695,000.00c. P 485,000.00
What is the amount of pre-acquisition earnings on the acquisition date consolidated income statement if the parent acquires 90 percent of the subsidiary’s stock and the following income statement accounts exist at the acquisition date?                                                     Parent                   Subsidiary Sales                                       P250,000                     P60,000 Cost of Goods Sold                120,000                       12,000 Depreciation Expense            10,000                         5,000 Operating Expenses                40,000                         8,000 Income Tax Expense                32,000                       14,000     2. Using the same information in No. 1, what is the imputed value of a subsidiary if the parent pays P56,000 for 80 percent of the subsidiary’s stock? Use the following information for question 3 and 4: Marksman acquired 100 percent of Tribal Transit for P275,000.  At the date of acquisition, Fast Transit…
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