Questions from Advanced Accounting

Q: Describe the nature of the tax effect of temporary differences that arise

Describe the nature of the tax effect of temporary differences that arise from use of the equity method of accounting.

Q: Does a parent/investor provide for income taxes on the undistributed

Does a parent/investor provide for income taxes on the undistributed earnings of a subsidiary by adjusting investment and investment income accounts? Explain.

Q: When do unrealized and constructive gains and losses create temporary differences for

When do unrealized and constructive gains and losses create temporary differences for a consolidated entity?

Q: Refer to the information in question 1. Assume that Son pays

Refer to the information in question 1. Assume that Son pays two years’ preferred dividend requirements during the current year. Would this affect your computation of Pop’s investment income for the c...

Q: Describe the computation of noncontrolling interest share for an 80 percent–

Describe the computation of noncontrolling interest share for an 80 percent–owned subsidiary with both preferred and common stock outstanding.

Q: Pan Corporation owns an 80 percent interest in Sol Company and Sol

Pan Corporation owns an 80 percent interest in Sol Company and Sol owns a 30 percent interest in Pan, both acquired at a fair value equal to book value. Separate incomes (not including investment inco...

Q: How does controlling share of consolidated earnings per share differ from parent

How does controlling share of consolidated earnings per share differ from parent earnings per share?

Q: Do investments in nonconsolidated subsidiaries and 20 to 50 percent–owned

Do investments in nonconsolidated subsidiaries and 20 to 50 percent–owned investees affect the nature of the investor’s EPS calculations?

Q: Balance sheet information of Pop and Son Corporations at December 31,

Balance sheet information of Pop and Son Corporations at December 31, 2015, is summarized as follows (in thousands): On January 2, 2016, Pop purchases 80 percent of Son’s outstandi...

Q: On January 1, 2017, Pam Corporation pays $600,

On January 1, 2017, Pam Corporation pays $600,000 for an 80 percent interest in Sun Company, when Sun’s net assets have a book value of $550,000 and a fair value of $700,000. The $150,000 excess fair...