Questions from Advanced Accounting

Q: Is there a difference between the amount of a parent’s net income

Is there a difference between the amount of a parent’s net income under the equity method and the consolidated net income for the same parent and its subsidiaries?

Q: Pop Corporation acquired an 80 percent interest in Son Corporation for $

Pop Corporation acquired an 80 percent interest in Son Corporation for $240,000 on January 1, 2016, when Son’s stockholders’ equity consisted of $200,000 capital st...

Q: Describe the accounting adjustments needed when a 25 percent equity interest in

Describe the accounting adjustments needed when a 25 percent equity interest in an investee is decreased to a 15 percent equity interest.

Q: Is there any difference in computing goodwill impairment losses for a controlled

Is there any difference in computing goodwill impairment losses for a controlled subsidiary versus an equity method investment?

Q: How are the accounts of investor and investee companies affected when the

How are the accounts of investor and investee companies affected when the investor acquires stock from stockholders of the investee (e.g., a New York Stock Exchange purchase)? Does this differ if the...

Q: Describe the equity method of accounting.

Describe the equity method of accounting.

Q: Why is the equity method referred to as a “one-

Why is the equity method referred to as a “one-line consolidation”?

Q: Comparative income statements of Son Corporation for the calendar years 2016,

Comparative income statements of Son Corporation for the calendar years 2016, 2017, and 2018 are as follows (in thousands): ADDITIONAL INFORMATION: 1. Son was a 75 percent–owned su...

Q: Pam Corporation acquired 100 percent of Sun Corporation’s outstanding voting common stock

Pam Corporation acquired 100 percent of Sun Corporation’s outstanding voting common stock on January 1, 2016, for $660,000 cash. Sun’s stockholdersâ€...

Q: Pop Corporation acquired a 75 percent interest in Son Corporation for $

Pop Corporation acquired a 75 percent interest in Son Corporation for $600,000 on January 1, 2016, when Son’s equity consisted of $300,000 capital stock and $100,000 retained earning...