Questions from Advanced Accounting

Q: The following information related to intercompany bond holdings was taken from the

The following information related to intercompany bond holdings was taken from the adjusted trial balances of a parent and its 90 percent–owned subsidiary four years before the bond...

Q: Prepare a journal entry (or entries) to account for the

Prepare a journal entry (or entries) to account for the parent’s investment income for the current year if the reported income of its 80 percent–owned subsidiary is $50,000 and the consolidated entity...

Q: Calculate the parent’s income from its 75 percent–owned subsidiary if

Calculate the parent’s income from its 75 percent–owned subsidiary if the reported net income of the subsidiary for the period is $100,000 and the consolidated entity has a constructive loss of $8,000...

Q: Pop Corporation increases its ownership interest in its subsidiary, Son Corporation

Pop Corporation increases its ownership interest in its subsidiary, Son Corporation, from 70 percent on January 1, 2016, to 90 percent at July 1, 2016. Son’s net income for 2016 is $200,000, and it de...

Q: On January 1, 2016, Pam Corporation purchased a 40 percent

On January 1, 2016, Pam Corporation purchased a 40 percent interest in Sun Corporation for $1,600,000, when Sun’s stockholders’ equity consisted of $2,000,000 capital stock and $2,000,000 retained ear...

Q: Pop Corporation owns 100 percent (300,000 shares) of

Pop Corporation owns 100 percent (300,000 shares) of the outstanding shares of Son Corporation’s common stock on January 1, 2016. Its Investment in Son account on this date is $4,400,000, equal to Son...

Q: Pam Corporation acquired a 75 percent interest in Sun Corporation on January

Pam Corporation acquired a 75 percent interest in Sun Corporation on January 1, 2016. Financial statements of Pam and Sun Corporations for the year 2016 are as follows (in thousands): REQUIRED: Prep...

Q: The balance of Pam Corporation’s investment in Sun Company account at December

The balance of Pam Corporation’s investment in Sun Company account at December 31, 2015, was $436,000, consisting of 80 percent of Sun’s $500,000 stockholders’ equity on that date and $36,000 goodwill...

Q: Pop Corporation paid $2,548,000 cash for 70

Pop Corporation paid $2,548,000 cash for 70 percent of the common stock of Son Corporation on June 1, 2016. The assets and liabilities of Son were fairly valued, and any fair value/book value differen...

Q: The stockholders’ equities of Pam Corporation and its 80 percent–owned

The stockholders’ equities of Pam Corporation and its 80 percent–owned subsidiary, Sun Corporation, on December 31, 2016, are as follows (in thousands): Pamâ...