Questions from Advanced Accounting

Q: Son Company had net income of $400,000 and paid

Son Company had net income of $400,000 and paid dividends of $200,000 during 2017. Son’s stockholders’ equity on December 31, 2016, and December 31, 2017, is summar...

Q: Pop Corporation purchased 480,000 shares of Son Corporation’s common stock

Pop Corporation purchased 480,000 shares of Son Corporation’s common stock (an 80 percent interest) for $10,600,000 on January 1, 2016. The $1,000,000 excess of investment fair value...

Q: Pam Corporation acquired 25 percent of Sun Corporation’s outstanding common stock on

Pam Corporation acquired 25 percent of Sun Corporation’s outstanding common stock on October 1, for $300,000. A summary of Sun’s adjusted trial balances on this dat...

Q: Summary balance sheet and income information for Son Company for two years

Summary balance sheet and income information for Son Company for two years is as follows (in thousands): On January 2, 2016, Pop Company purchases 10 percent of Son Company for $25,000 cash, and it...

Q: Pop Corporation acquired 80 percent of Son Corporation’s common stock on January

Pop Corporation acquired 80 percent of Son Corporation’s common stock on January 1, 2016, for $420,000 cash. The stockholders’ equity of Son at this time consisted...

Q: The stockholders’ equity of Sun Corporation at December 31, 2016,

The stockholders’ equity of Sun Corporation at December 31, 2016, was $380,000, consisting of the following (in thousands): Capital stock, $10 par (24,000 shares outstanding)........... $240 Addition...

Q: Pop Corporation paid $780,000 for a 30 percent interest

Pop Corporation paid $780,000 for a 30 percent interest in Son Corporation on December 31, 2016, when Son’s stockholders’ equity consisted of $2,000,000 capital stock and $800,000 retained earnings. T...

Q: Pop Corporation acquired a 90 percent interest in Son Corporation at book

Pop Corporation acquired a 90 percent interest in Son Corporation at book value on January 1, 2016. Intercompany purchases and sales and inventory data for 2016, 2017, and 2018, are as follows: Sele...

Q: Pam Corporation paid $290,000 for 40 percent of the

Pam Corporation paid $290,000 for 40 percent of the outstanding common stock of Sun Corporation on January 2, 2017. During 2017, Sun paid dividends of $48,000 and reported net income of $108,000. A su...

Q: Pop Corporation paid $686,000 for a 30 percent interest

Pop Corporation paid $686,000 for a 30 percent interest in Son Corporation’s outstanding voting stock on April 1, 2016. At December 31, 2015, Son had net assets of $2,000,000 and only common stock out...