Questions from Advanced Accounting

Q: Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock

Refer to the preceding information for Paulcraft’s acquisition of Switzer’s common stock. Assume that Paulcraft pays $420,000 for 100% of Switzer common stock. Paul...

Q: Prior to January 2, 2018, Prestar and Saturn are separate

Prior to January 2, 2018, Prestar and Saturn are separate corporations. Saturn Corporation is contemplating a major expansion and seeks to be purchased by a larger corporation with available cash. Pre...

Q: Baker Corporation purchases a 60% interest in Hardee Company on January

Baker Corporation purchases a 60% interest in Hardee Company on January 1, 2015, for $135,000. On that date, Hardee Company has the following stockholders’ equity: Common stock ($1...

Q: Rob Company purchases a 90% interest in Venus Company for $

Rob Company purchases a 90% interest in Venus Company for $418,500 on January 1, 2017. Any excess of cost over book value is attributed to equipment, which is being depreciated over 20 years. Both com...

Q: Carpenter Company has the following balance sheet on December 31, 2015

Carpenter Company has the following balance sheet on December 31, 2015: The investment in Hinckley Company account reflects the original cost of an 80% interest (40,000 shares) purchased on Januar...

Q: Your client, Lewison International, has informed you that it has

Your client, Lewison International, has informed you that it has reached an agreement with Herro Company to acquire all of Herro’s assets. Thistransaction will be accomplished through the issue of Lew...

Q: Center, Inc., purchases 24,000 shares of Bruce Corporation

Center, Inc., purchases 24,000 shares of Bruce Corporation, which equates to an 80% interest, on January 1, 2015. The following determination and distribution of excess schedule is prepared: Bruce...

Q: On January 1, 2016, Boelter Company purchases 80% of

On January 1, 2016, Boelter Company purchases 80% of the outstanding common stock of Mill Corporation for $280,000. On this date, Mill Corporation stockholders’ equity is as follows: 6% Preferred st...

Q: Brian Construction Company has the following stockholders’ equity on January 1,

Brian Construction Company has the following stockholders’ equity on January 1, 2015, the date on which Roller Company purchases an 80% interest in the common stock for $720,000: 8% cumulative prefer...

Q: On December 31, 2014, Zigler Corporation purchases an 80%

On December 31, 2014, Zigler Corporation purchases an 80% interest in the common stock of Kim Company for $420,000. The stockholders’ equity of Kim Company on December 31, 2014, is as follows: 8% Cum...