ADVANCED ACCT W/CONNECT >CUSTOM<
18th Edition
ISBN: 9781307261721
Author: Hoyle
Publisher: Mcgraw-Hill/Create
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Question
Chapter 4, Problem 36P
a.
To determine
Explain the way in which the accountant determines that the parent has applied the initial value method.
b.
To determine
Find the annual excess amortization initially recognized in connection with this acquisition.
c.
To determine
Find the investment income which the parent would have recorded in 2018 if the parent had applied the equity method.
D
To determine
Find the amount which the parent should report as
e.
To determine
Find the consolidated net income for 2018 and what amounts are attributable to the controlling and non-controlling interests.
f.
To determine
Find the balance which is included for the subsidiary’s Buildings account.
g.
To determine
Find the consolidated Buildings reported balance as of December 31, 2018.
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Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2018. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before and after the acquisition date. On January 1, 2018, Sea-Breeze had the following assets and liabilities:
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Chapter 4 Solutions
ADVANCED ACCT W/CONNECT >CUSTOM<
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