Questions from Advanced Accounting

Q: On January 1, 2017, Holland Corporation paid $8 per

On January 1, 2017, Holland Corporation paid $8 per share to a group of Zeeland Corporation shareholders to acquire 60,000 shares of Zeeland’s outstanding voting stock, representing...

Q: On January 1, 2018, Morey, Inc., exchanged $

On January 1, 2018, Morey, Inc., exchanged $178,000 for 25 percent of Amsterdam Corporation. Morey appropriately applied the equity method to this investment. At January 1, the book values of Amsterda...

Q: Posada Company acquired 7,000 of the 10,000 outstanding

Posada Company acquired 7,000 of the 10,000 outstanding shares of Sabathia Company on January 1, 2016, for $840,000. The subsidiary’s total fair value was assessed at $1,200,000 although its book valu...

Q: On January 1, 2016, Telconnect acquires 70 percent of Bandmor

On January 1, 2016, Telconnect acquires 70 percent of Bandmor for $490,000 cash. The remaining 30 percent of Bandmor’s shares continued to trade at a total value of $210,000. The new...

Q: Miller Company acquired an 80 percent interest in Taylor Company on January

Miller Company acquired an 80 percent interest in Taylor Company on January 1, 2016. Miller paid $664,000 in cash to the owners of Taylor to acquire these shares. In addition, the remaining 20 percent...

Q: Following are several account balances taken from the records of Karson and

Following are several account balances taken from the records of Karson and Reilly as of December 31, 2018. A few asset accounts have been omitted here. All revenues, expenses, and dividen...

Q: Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation

Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash on January 1, 2015. The remaining 40 percent of the Sea-Breeze shares traded near a total value of $276,000 both before a...

Q: The Holtz Corporation acquired 80 percent of the 100,000 outstanding

The Holtz Corporation acquired 80 percent of the 100,000 outstanding voting shares of Devine, Inc., for $7.20 per share on January 1, 2017. The remaining 20 percent of Devine’s share...

Q: Following are the individual financial statements for Gibson and Davis for the

Following are the individual financial statements for Gibson and Davis for the year ending December 31, 2018: Gibson acquired 60 percent of Davis on April 1, 2018, for $528,000. On that date, equipme...

Q: On July 1, 2018, Truman Company acquired a 70 percent

On July 1, 2018, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $720,000 in cash and equity securities. The remaining 30 percent of Atlanta’s shares...