Q: On January 1, 2015, Wells Corporation acquires 8,000
On January 1, 2015, Wells Corporation acquires 8,000 shares of Towne Company stock and 18,000 shares of Sara Company stock for $176,000 and $240,000, respectively. Each investment is acquired at a pri...
See AnswerQ: On January 1, 2015, Bear Corporation acquires a 60%
On January 1, 2015, Bear Corporation acquires a 60% interest in Kelly Company and an 80% interest in Samco Company. The purchase prices are $225,000 and $250,000, respectively. The excess of cost over...
See AnswerQ: On January 1, 2016, Palo Company acquires 80% of
On January 1, 2016, Palo Company acquires 80% of the outstanding common stock of Sheila Company for $700,000. On January 1, 2018, Sheila Company sells 25,000 shares of common stock to the public at $1...
See AnswerQ: On January 1, 2016, Mitta Corporation acquires a 60%
On January 1, 2016, Mitta Corporation acquires a 60% interest (12,000 shares) in Train Company for $156,000. Train stockholders’ equity on the purchase date is as follows: Common s...
See AnswerQ: The audit of Barns Company and its subsidiaries for the year ended
The audit of Barns Company and its subsidiaries for the year ended December 31, 2016, is completed. The working papers contain the following information: a. Barns Company acquires 4,000 shares of Webo...
See AnswerQ: Albers Company acquires an 80% interest in Barker Company on January
Albers Company acquires an 80% interest in Barker Company on January 1, 2015, for $850,000. The following determination and distribution of excess schedule is prepared at the time of purchase: Alber...
See AnswerQ: Identify each of the following business combinations as being vertical-backward
Identify each of the following business combinations as being vertical-backward, vertical-forward, horizontal, product extension, market extension, or conglomerate: a. An inboard marine engine manufac...
See AnswerQ: Refer to the preceding information for Fast Cool’s acquisition of Fast Air’s
Refer to the preceding information for Fast Cool’s acquisition of Fast Air’s common stock. Assume Fast Cool issues 35,000 shares of its $20 fair value common stock...
See AnswerQ: Abrams Company is a sole proprietorship. The book value of its
Abrams Company is a sole proprietorship. The book value of its identifiable net assetsis $400,000, and the fair value of the same net assets is $600,000. It is agreed that thebusiness is worth $850,00...
See AnswerQ: During 2015, Company P sold $50,000 of goods
During 2015, Company P sold $50,000 of goods to subsidiary Company S at a profit of $12,000. One-fourth of the goods remain unsold at year-end. If no adjustments were made on the consolidated workshee...
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