Soft Bound Version for Advanced Accounting 13th Edition
13th Edition
ISBN: 9781260110579
Author: Hoyle
Publisher: McGraw Hill Education
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Chapter 6, Problem 35P
To determine
Indicate how to reflect each of these events on a consolidated statement of cash flows.
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The following information has been taken from the consolidation worksheet of Peak and its 90 percent–owned subsidiary, Valley:• Peak reports a $12,000 gain on the sale of a building. The building had a book value of $32,000 but was sold for $44,000 cash.• Intra-entity inventory transfers of $129,000 occurred during the current period.• Valley declared and paid a $30,000 dividend during the year with $27,000 of this amount going to Peak.• Amortization of an intangible asset recognized by Peak’s worksheet was $16,000 for the current period.• Consolidated accounts payable decreased by $11,000 during the year.Indicate how to reflect each of these events on a consolidated statement of cash flows.
On December 30, Draco, Inc. acquired a 100% ownership interest in Lamya Corporation at a cost of $300,000. Draco determined that Lamya’s inventory was undervalued by $20,000 on the acquisition date. Draco had retained earnings totaling $215,000, common stock totaling $60,000, total assets of $600,000, and total liabilities of $325,000 just before the consolidation. Lamya’s book value and fair market value of net assets were both $250,000 at the time of acquisition, with $50,000 reported as common stock and $200,000 reported as retained earnings.How much will Draco report as total stockholders' equity on its consolidated balance sheet immediately after the acquisition?
Select one:
A. $525,000
B. $285,000
C. $275,000
D. $575,000
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Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises
Current assets
$ 5,100
Current liabilities
$ 3,100
Other assets
1,500
Long-term debt
7,800
Net fixed assets
18,300
Equity
14,000
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Total
$ 24,900
Total
$ 24,900
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All Gold Mining
Current assets
$ 1,600
Current liabilities
$ 1,410
Other assets
570
Long-term debt
0
Net fixed assets
8,000
Equity
8,760
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Total
$ 10,170
Total
$ 10,170
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Construct the balance sheet for the new corporation assuming that the transaction is treated as a purchase of interests for accounting purposes. The market value of All Gold Mining's fixed assets is $9,250; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $14,500 in new long-term debt to finance the acquisition.
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Current assets
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Current…
Chapter 6 Solutions
Soft Bound Version for Advanced Accounting 13th Edition
Ch. 6 - Prob. 1QCh. 6 - Prob. 2QCh. 6 - When is a firm required to consolidate the...Ch. 6 - Prob. 4QCh. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - Prob. 8QCh. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - How do noncontrolling interest balances affect the...Ch. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - Prob. 17QCh. 6 - Prob. 1PCh. 6 - Prob. 2PCh. 6 - Prob. 3PCh. 6 - Prob. 4PCh. 6 - Prob. 5PCh. 6 - Prob. 6PCh. 6 - Problems 7 and 8 are based on the following...Ch. 6 - Prob. 8PCh. 6 - Bens man Corporation is computing EPS. One of its...Ch. 6 - Prob. 10PCh. 6 - Prob. 11PCh. 6 - Prob. 12PCh. 6 - Prob. 13PCh. 6 - Prob. 14PCh. 6 - Prob. 15PCh. 6 - Prob. 16PCh. 6 - On January 1, Coldwater Company has a net book...Ch. 6 - Prob. 18PCh. 6 - Prob. 19PCh. 6 - Prob. 20PCh. 6 - On January 1, 2018, Stamford issues 10,000...Ch. 6 - On January 1, 2018, Stamford reacquires 8,000 of...Ch. 6 - Prob. 23PCh. 6 - Prob. 24PCh. 6 - On December 31, 2017. PanTech Company invests...Ch. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Prob. 29PCh. 6 - Prob. 30PCh. 6 - Prob. 31PCh. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Alford Company and its 80 percentowned subsidiary,...Ch. 6 - Prob. 37PCh. 6 - Prob. 38PCh. 6 - Prob. 39PCh. 6 - Prob. 40PCh. 6 - Prob. 41PCh. 6 - Prob. 42PCh. 6 - Prob. 43PCh. 6 - Prob. 44PCh. 6 - Fred, Inc., and Herman Corporation formed a...Ch. 6 - Prob. 46PCh. 6 - Prob. 47PCh. 6 - Prob. 48PCh. 6 - Prob. 49PCh. 6 - Prob. 50PCh. 6 - Prob. 1DYSCh. 6 - Prob. 2DYSCh. 6 - The FASB ASC Subtopic Variable Interest Entities...
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