Questions from Advanced Accounting

Q: Pam Corporation purchased a 90 percent interest in Sun Corporation on December

Pam Corporation purchased a 90 percent interest in Sun Corporation on December 31, 2015, for $2,700,000 cash, when Sun had capital stock of $2,000,000 and retained earnings of $500,000. All Sunâ...

Q: Pop Corporation acquired 100 percent of Son Corporation’s outstanding voting common stock

Pop Corporation acquired 100 percent of Son Corporation’s outstanding voting common stock on January 1, 2016, for $660,000 cash. Son’s stockholders&acir...

Q: 1. Consolidation workpaper entries normally: a Are posted to

1. Consolidation workpaper entries normally: a Are posted to the general ledger accounts of one or more of the affiliates b Are posted to the general ledger accounts only when the financial statement...

Q: Pop Corporation has owned a 30 percent interest in Son Corporation for

Pop Corporation has owned a 30 percent interest in Son Corporation for ten years, and has properly recorded this investment using the equity method of accounting. On July 1 of the current year Pop pur...

Q: Pop Corporation purchased a 90 percent interest in Son Corporation on December

Pop Corporation purchased a 90 percent interest in Son Corporation on December 31, 2016, for $5,400,000 cash, when Son had capital stock of $4,000,000 and retained earnings of $1,000,000. All Son&acir...

Q: Pam Corporation acquired its 90 percent interest in Sun Corporation at its

Pam Corporation acquired its 90 percent interest in Sun Corporation at its book value of $3,600,000 on January 1, 2016, when Sun had capital stock of $3,000,000 and retained earnings of $1,000,000. Th...

Q: Should the consolidated financial statements include the subsidiary’s retained earnings at the

Should the consolidated financial statements include the subsidiary’s retained earnings at the acquisition date?

Q: Does noncontrolling interest represent a liability or an equity in the consolidated

Does noncontrolling interest represent a liability or an equity in the consolidated balance sheet?

Q: In eliminating unrealized profit on intercompany sales of inventory items, should

In eliminating unrealized profit on intercompany sales of inventory items, should gross profit or net profit be eliminated?

Q: 1. Pam Corporation owns a 70 percent interest in Sun Corporation

1. Pam Corporation owns a 70 percent interest in Sun Corporation, acquired several years ago at book value. On December 31, 2016, Sun mailed a check for $80,000 to Pam in part payment of an $160,000 a...