ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 3, Problem 3.19.2P
To determine
Concept introduction
Consolidation: Consolidation is the process of accounting where books of the parent company is reported along with the books of the subsidiary company in consolidated/combined form after making necessary
To explain: The amount of these intercompany loans and profits should be included in the combined financial statements.
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Required information
[The following information applies to the questions displayed below.]
Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and
Janice Corporation, which form a single unitary group. Assume sales operations are within the solicitation bounds of Public
Law 86-272. Each of the corporations has operations in the following states:
Domicile State
Dividend income
Business income
Sales: State X
Sales: State Y
Sales: State Z
Sales: State A
Sales: State B
Property: State X
Property: State Y
Property: State Z
Property: State A
Payroll: State x
Payroll: State Y
Payroll: State Z
Payroll: State A
Business Income
Carol
Sharon
Josey
Incorporated Corporation Corporation
State X
State Y
State Z
(throwback) (throwback) (nonthrowback)
$1,830
$ 525
$ 595
14, 200
46,500
78,500
State X
$ 72,150
29,300
16,900
69,500
65,750
14,500
b. Calculate the business income apportioned to State X.
43,250
18,500
52,500
20, 200
21,600
86,500…
Required information
[The following information applies to the questions displayed below.]
Sharon Incorporated is headquartered in State X and owns 100 percent of Carol Corporation, Josey Corporation, and
Janice Corporation, which form a single unitary group. Assume sales operations are within the solicitation bounds of
Public Law 86-272. Each of the corporations has operations in the following states:
Domicile State
Dividend income
Business income
Sales: State X
Sales: State Y
Sales: State Z
Sales: State A
Sales: State B
Property: State X
Property: State Y
Property: State Z
Property: State A
Payroll: State X
Payroll: State Y
Payroll: State Z
Payroll: State A
Business Income
Sharon
Carol
Josey
Incorporated Corporation Corporation
State Y
State Z
(throwback) (throwback) (nonthrowback)
State X
$ 1,240
$315
$ 375
42,500
16, 200
10,900
56,500
28, 200
69,200
93,000
State X
24,800
19,600
65,500
63,500
14,300
b. Calculate the business income apportioned to State X.
22,100
102,500
13,000…
account balance. Assume that
nt of downstream intra-entity profits against its share of Sheridan's income.
b. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting
as of December 31, 2024.
Complete this question by entering your answers in the tabs below.
Required A Required B
Show how Pulaski determined the $409,651 Investment in Sheridan account balance. Assume that Pulaski defi
of downstream intra-entity profits against its share of Sheridan's income.
Note: Amounts to be deducted should be indicated with a minus sign.
Consideration transferred
Increase in Sheridan's retained earnings 1/1/23 to 1/1/24
Excess fair value amortization
2023 ending inventory profit deferral
Pulaski's equity in earnings of Stinson for 2024
Sheridan 2024 dividends declared to Pulaski
Investment account balance 12/31/24
Required A
$(20,340)
+
$362,400
(20,340)
$342,060
Required B >
Chapter 3 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 3 - What is the basic idea underlying the preparation...Ch. 3 - How might consolidated statements help an investor...Ch. 3 - Prob. 3.3QCh. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Prob. 3.7QCh. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Prob. 3.10Q
Ch. 3 - Prob. 3.11QCh. 3 - Prob. 3.12QCh. 3 - What is meant by indirect control? Give an...Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Prob. 3.18QCh. 3 - Prob. 3.1CCh. 3 - Prob. 3.2CCh. 3 - Prob. 3.1.1ECh. 3 - Prob. 3.1.2ECh. 3 - Prob. 3.1.3ECh. 3 - Prob. 3.1.4ECh. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Multiple-Choice Question on Variable Interest...Ch. 3 - Prob. 3.2.3ECh. 3 - Prob. 3.2.4ECh. 3 - Prob. 3.3.1ECh. 3 - Prob. 3.3.2ECh. 3 - Prob. 3.3.3ECh. 3 - Prob. 3.4.1ECh. 3 - Prob. 3.4.2ECh. 3 - Prob. 3.4.3ECh. 3 - Prob. 3.4.4ECh. 3 - Balance Sheet Consolidation On January 1, 20X3,...Ch. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Reporting for a Variable Interest Entity Gamble...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19.1PCh. 3 - Prob. 3.19.2PCh. 3 - Prob. 3.20PCh. 3 - Prob. 3.21PCh. 3 - Prob. 3.22PCh. 3 - Prob. 3.23PCh. 3 - Prob. 3.24PCh. 3 - Prob. 3.25PCh. 3 - Prob. 3.26PCh. 3 - Prob. 3.27PCh. 3 - Prob. 3.28PCh. 3 - Prob. 3.29PCh. 3 - Consolidated Worksheet at End of the First Year of...Ch. 3 - Prob. 3.31P
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