Questions from Advanced Accounting

Q: What is the essential procedural difference between workpaper eliminating entries for unrealized

What is the essential procedural difference between workpaper eliminating entries for unrealized intercompany profit made when the selling affiliate is a less than wholly owned subsidiary and those ma...

Q: Define the controlling interest in consolidated net income using the t-

Define the controlling interest in consolidated net income using the t-account or analytical approach.

Q: In what circumstances might a consolidated gain be recognized on the sale

In what circumstances might a consolidated gain be recognized on the sale of assets to a nonaffiliate when the selling affiliate recognizes a loss?

Q: Define the controlling interest in consolidated net income using the t-

Define the controlling interest in consolidated net income using the t-account approach.

Q: Define consolidated retained earnings using the analytical approach.

Define consolidated retained earnings using the analytical approach.

Q: Define “constructive retirement of debt.” How is the total constructive

Define “constructive retirement of debt.” How is the total constructive gain or loss computed?

Q: The gain or loss on the constructive retirement of debt is recognized

The gain or loss on the constructive retirement of debt is recognized subsequently by the individual companies. Explain.

Q: Allocating the gain or loss on constructive bond retirement between the purchasing

Allocating the gain or loss on constructive bond retirement between the purchasing and issuing companies is preferred conceptually. Describe how this allocation would be made.

Q: Give the primary argument(s) in favor of assigning the

Give the primary argument(s) in favor of assigning the total gain or loss on constructive bond retirement to the company that issued the bonds.

Q: Identify three types of transactions that result in a change in a

Identify three types of transactions that result in a change in a parent company’s ownership interest in its subsidiary.