Questions from Advanced Accounting

Q: In allocating the excess of investment fair value over book value of

In allocating the excess of investment fair value over book value of a subsidiary, are the amounts assigned to identifiable assets and liabilities (land and notes payable, for example) recorded separa...

Q: If the fair value of a subsidiary’s land was $100,

If the fair value of a subsidiary’s land was $100,000 and its book value was $90,000 when the parent acquired its 100 percent interest for cash, at what amount would the land be included in the consol...

Q: Define or explain the terms parent company, subsidiary company, affiliates

Define or explain the terms parent company, subsidiary company, affiliates, and associates.

Q: What is a noncontrolling interest?

What is a noncontrolling interest?

Q: In what general ledger would you expect to find the account “

In what general ledger would you expect to find the account “goodwill from consolidation”?

Q: How should the parent’s investment in subsidiary account be classified in a

How should the parent’s investment in subsidiary account be classified in a consolidated balance sheet? In the parent’s separate balance sheet?

Q: Name some reciprocal accounts that might be found in the separate records

Name some reciprocal accounts that might be found in the separate records of a parent and its subsidiaries.

Q: Why are reciprocal amounts eliminated in preparing consolidated financial statements?

Why are reciprocal amounts eliminated in preparing consolidated financial statements?

Q: The consolidated workpaper balances of Pop, Inc., and its subsidiary

The consolidated workpaper balances of Pop, Inc., and its subsidiary, Son Corporation, as of December 31 are as follows (in thousands): ADDITIONAL INFORMATION: 1. On January 20, 2016, Pop issued 10...

Q: Pop Corporation acquired a 70 percent interest in Son Corporation on January

Pop Corporation acquired a 70 percent interest in Son Corporation on January 1, 2016, for $420,000 cash, when Son’s equity consisted of $300,000 capital stock and $200,000 retained e...