Questions from Advanced Accounting

Q: What is the accounting concept of a business combination?

What is the accounting concept of a business combination?

Q: Is dissolution of all but one of the separate legal entities necessary

Is dissolution of all but one of the separate legal entities necessary in order to have a business combination? Explain.

Q: What are the legal distinctions between a business combination, a merger

What are the legal distinctions between a business combination, a merger, and a consolidation?

Q: When does goodwill result from a business combination? How does goodwill

When does goodwill result from a business combination? How does goodwill affect reported net income after a business combination?

Q: Pam and Sun Corporations entered into a business combination accounted for as

Pam and Sun Corporations entered into a business combination accounted for as a pooling of interests in which Sun was dissolved. Net assets and stockholders’ equities of the two comp...

Q: 1. Pam Corporation owns 70 percent of Sun Company’s common stock

1. Pam Corporation owns 70 percent of Sun Company’s common stock, acquired January 1, 2017. Patents from the investment are being amortized at a rate of $20,000 per year. Sun regular...

Q: Is the amount of intercompany profit to be eliminated from consolidated financial

Is the amount of intercompany profit to be eliminated from consolidated financial statements affected by the existence of a noncontrolling interest? Explain.

Q: Pop Corporation purchased a 75 percent interest in Son Corporation in the

Pop Corporation purchased a 75 percent interest in Son Corporation in the open market on January 1, 2017, for $690,000. A summary of Son’s stockholders’ equity on D...

Q: Again, consider the facts presented in PR 8-1 above

Again, consider the facts presented in PR 8-1 above. Is it acceptable for Pop to continue to account for its investment in Son for the current year, using the equity method of accounting and delaying...

Q: What effect does the elimination of intercompany sales and cost of goods

What effect does the elimination of intercompany sales and cost of goods sold have on consolidated net income?