Questions from Advanced Accounting

Q: What is the primary legal constraint on business combinations? Why does

What is the primary legal constraint on business combinations? Why does such a constraint exist?

Q: Alpha Company is considering the purchase of Beta Company. Alpha has

Alpha Company is considering the purchase of Beta Company. Alpha has collected the following data about Beta: Cumulative total net cash earnings for the past five years of $850,000 includes extraord...

Q: Pcost Company purchased 85% of the common stock of Scost

Pcost Company purchased 85% of the common stock of Scost Company on April 1, Year 1. The fair value of the consideration transferred consisted of a cash payment of $545,000 and contingent consideratio...

Q: Accounting textbooks under the former GAAP hierarchy were considered level 4 authoritative

Accounting textbooks under the former GAAP hierarchy were considered level 4 authoritative. Where do accounting textbooks stand in the Codification?

Q: Why are consolidated workpapers used in preparing consolidated financial statements?

Why are consolidated workpapers used in preparing consolidated financial statements?

Q: Define a tender offer and describe its use.

Define a tender offer and describe its use.

Q: Polychromasia, Inc. had a number of receivables from subsidiaries at

Polychromasia, Inc. had a number of receivables from subsidiaries at the balance sheet date, as well as several payables to subsidiaries. Of its five subsidiaries, four are consolidated in the financi...

Q: Peep Inc. acquired 100% of the outstanding common stock of

Peep Inc. acquired 100% of the outstanding common stock of Shy Inc. for $2,500,000 cash and 15,000 shares of its common stock ($2 par value). The stock’s market value was $40 on the acquisition date....

Q: On a consolidated workpaper for a parent and its partially owned subsidiary

On a consolidated workpaper for a parent and its partially owned subsidiary, the noncontrolling interest column accumulates the noncontrolling interests’ share of several account balances. What are th...

Q: Corporation A purchased the net assets of Corporation B for $80

Corporation A purchased the net assets of Corporation B for $80,000. On the date of A’s purchase, Corporation B had no long-term investments in marketable securities and $10,000 (book and fair value)...