Q: The following are several figures reported for Allister and Barone as of
The following are several figures reported for Allister and Barone as of December 31, 2021: Allister acquired 90 percent of Barone in January 2020. In allocating the newly acquired sub- sidiaryâ...
See AnswerQ: On January 1, 2020, Corgan Company acquired 80 percent of
On January 1, 2020, Corgan Company acquired 80 percent of the outstanding voting stock of Smashing, Inc., for a total of $980,000 in cash and other consideration. At the acquisition date, Smashing had...
See AnswerQ: Placid Lake Corporation acquired 80 percent of the outstanding voting stock of
Placid Lake Corporation acquired 80 percent of the outstanding voting stock of Scenic, Inc., on January 1, 2020, when Scenic had a net book value of $400,000. Any excess fair value was assigned to int...
See AnswerQ: You have been engaged to do the accounting for the termination and
You have been engaged to do the accounting for the termination and liquidation of the Miller, Smith, and Tavares partnership. Miller has requested an immediate distribution of cash from the partnershi...
See AnswerQ: On January 1, 2020, Doone Corporation acquired 60 percent of
On January 1, 2020, Doone Corporation acquired 60 percent of the outstanding voting stock of Rockne Company for $300,000 consideration. At the acquisition date, the fair value of the 40 percent noncon...
See AnswerQ: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft
Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on January 1, 2020, for $612,000 in cash and other consideration. At the acquisition date, Protrade assesse...
See AnswerQ: Akron, Inc., owns all outstanding stock of Toledo Corporation.
Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2021, the companies had the...
See AnswerQ: On January 1, 2020, QuickPort Company acquired 90 percent of
On January 1, 2020, QuickPort Company acquired 90 percent of the outstanding voting stock of NetSpeed, Inc., for $810,000 in cash and stock options. At the acquisition date, NetSpeed had common stock...
See AnswerQ: Padre holds 100 percent of the outstanding shares of Sonora. On
Padre holds 100 percent of the outstanding shares of Sonora. On January 1, 2019, Padre transferred equipment to Sonora for $95,000. The equipment had cost $130,000 originally but had a $50,000 book va...
See AnswerQ: On January 1, 2021, Ackerman sold equipment to Brannigan (
On January 1, 2021, Ackerman sold equipment to Brannigan (a wholly owned subsidiary) for $200,000 in cash. The equipment had originally cost $180,000 but had a book value of only $110,000 when transfe...
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