Questions from Advanced Accounting

Q: Comparative adjusted trial balances for Pam Corporation and Sun Corporation are given

Comparative adjusted trial balances for Pam Corporation and Sun Corporation are given here. Pam Corporation acquired an 80 percent interest in Sun Corporation on January 1, 2016, for $80,000 cash. Exc...

Q: Briefly outline the steps to calculate a goodwill impairment loss.

Briefly outline the steps to calculate a goodwill impairment loss.

Q: On December 31, 2016, the separate-company financial statements

On December 31, 2016, the separate-company financial statements for Pam Corporation and its 70 percent-owned subsidiary, Sun Corporation, had the following account balances related to dividends (in th...

Q: Comparative income statements of Pop Corporation and Son Corporation for the year

Comparative income statements of Pop Corporation and Son Corporation for the year ended December 31, 2018, are as follows (in thousands): ADDITIONAL INFORMATION: 1. Son is a 90 percentâ€&...

Q: 1. A 75 percent–owned subsidiary should not be consolidated

1. A 75 percent–owned subsidiary should not be consolidated when: a Its operations are dissimilar from those of the parent company b Control of the subsidiary does not lie with the parent company c Th...

Q: Pop Corporation purchased a 70 percent interest in Son Corporation on January

Pop Corporation purchased a 70 percent interest in Son Corporation on January 2, 2016, for $98,000, when Son had capital stock of $100,000 and retained earnings of $20,000. On June 30, 2017, Pop purch...

Q: 1. Under GAAP, a parent company should exclude a subsidiary

1. Under GAAP, a parent company should exclude a subsidiary from consolidation if: a It measures income from the subsidiary under the equity method b The subsidiary is in a regulated industry c The su...

Q: 1. Cobb Company’s current receivables from affiliated companies at December 31

1. Cobb Company’s current receivables from affiliated companies at December 31, 2016, are (1) a $75,000 cash advance to Hill Corporation (Cobb owns 30 percent of the voting stock of...

Q: Pop Corporation paid $3,600,000 for a 90

Pop Corporation paid $3,600,000 for a 90 percent interest in Son Corporation on January 1, 2016; Son’s total book value was $3,600,000. The excess was allocated as follows: $120,000...

Q: Book values and fair values of Son Corporation’s assets and liabilities on

Book values and fair values of Son Corporation’s assets and liabilities on December 31, 2015, are as follows (in thousands): On January 1, 2016, Pop Corporation acquires all of Son...