Q: On January 1, 2015, Traylor Company, an 80%-
On January 1, 2015, Traylor Company, an 80%-owned subsidiary of Parker Electronics, Inc., signed a 4-year direct financing lease with its parent for the rental of electronic equipment. The lease agree...
See AnswerQ: The Auto Clinic is a wholly owned subsidiary of Fast-Check
The Auto Clinic is a wholly owned subsidiary of Fast-Check Equipment Company. Fast-Check Equipment sells and leases 4-wheel alignment machines. The usual selling price of each machine is $35,000; it h...
See AnswerQ: Born Company acquires an 80% interest in Roland Company for $
Born Company acquires an 80% interest in Roland Company for $660,000 cash on January 1, 2017. The NCI has a fair value of $165,000. Any excess of cost over book value is attributed to goodwill. To hel...
See AnswerQ: Avery Company acquires the net assets of Iowa Company on July 1
Avery Company acquires the net assets of Iowa Company on July 1, 2015. The net assets acquired include plant assets that are provision all estimated to have a fair value of $600,000 with a 10-year usa...
See AnswerQ: Duckworth Corporation purchases an 80% interest in Panda Corporation on January
Duckworth Corporation purchases an 80% interest in Panda Corporation on January 1, 2017, in exchange for 5,000 Duckworth shares (market value of $18) plus $155,000 cash. The fair value of the NCI is p...
See AnswerQ: Paridon Motors purchases an 80% interest in Snap Battery Company on
Paridon Motors purchases an 80% interest in Snap Battery Company on January 1, 2012, for $700,000 cash. At that date, Snap Battery Company has the following stockholders’ equity: Common stock ($10 p...
See AnswerQ: On May 1, 2016, Tole Company acquires a 80%
On May 1, 2016, Tole Company acquires a 80% interest in Marco Company for $400,000. The fair value of the NCI is $100,000. The following determination and distribution of excess schedule is prepared:...
See AnswerQ: Deko Company purchases an 80% interest in the common stock of
Deko Company purchases an 80% interest in the common stock of Farwell Company for $850,000 on January 1, 2017. At the time of the purchase, the total stockholders’ equity of Farwell...
See AnswerQ: (This is the same as Exercise 5 but with separate taxation
(This is the same as Exercise 5 but with separate taxation.) Dunker Company purchases an 80% interest in the common stock of Fennig Company for $850,000 on January 1, 2017. The fair value of the NCI i...
See AnswerQ: The separate income statements of Coors Company and its 60% owned
The separate income statements of Coors Company and its 60% owned subsidiary, Vespa Company, for the year ended December 31, 2017, are as follows: The following additional information is availab...
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