Questions from Financial Accounting

Q: Answer these questions about consolidation accounting: 1. Define “

Answer these questions about consolidation accounting: 1. Define “parent company.” Define “subsidiary company.” 2. How do consolidated financial statements differ from the financial statements of a si...

Q: Potter Corporation owns equity-method investments in several companies. Suppose

Potter Corporation owns equity-method investments in several companies. Suppose Potter paid $1,100,000 to acquire a 30% investment in Faulk Software Company. Faulk Software reported net income of $660...

Q: Assume Caltron paid $20 million to purchase HarborSide.com.

Assume Caltron paid $20 million to purchase HarborSide.com. Assume further that HarborSide had the following summarized data at the time of the Caltron acquisition (amounts in millions): HarborSide&...

Q: Kroger, Inc., one of the nation’s largest grocery retailers,

Kroger, Inc., one of the nation’s largest grocery retailers, reported the following information (adapted) for its fiscal year ended January 31, 2011: Requirements 1. Compute profit...

Q: Assume Happy Feet Corporation completed the following transactions: a.

Assume Happy Feet Corporation completed the following transactions: a. Sold a store building for $680,000. The building cost Happy Feet $1,600,000, and at the time of the sale, its accumulated depreci...

Q: Pierce Self Storage purchased land, paying $160,000 cash

Pierce Self Storage purchased land, paying $160,000 cash as a down payment and signing a $150,000 note payable for the balance. Pierce also had to pay delinquent property tax of $5,000, title insuranc...

Q: Southwood Manufacturing bought three used machines in a $192,000

Southwood Manufacturing bought three used machines in a $192,000 lump-sum purchase. An independent appraiser valued the machines as shown: Machine No. ___________Appraised Value 1 ……………………………………………………...

Q: Assume Plastic Products, Inc., purchased conveyor-belt machinery.

Assume Plastic Products, Inc., purchased conveyor-belt machinery. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery: a. Sales tax paid o...

Q: Assume Decadent Delights, Inc., purchased conveyor-belt machinery.

Assume Decadent Delights, Inc., purchased conveyor-belt machinery. Classify each of the following expenditures as a capital expenditure or an immediate expense related to machinery: a. Sales tax paid...

Q: During 2012, Ming Book Store paid $485,000 for

During 2012, Ming Book Store paid $485,000 for land and built a store in Baltimore. Prior to construction, the city of Baltimore charged Ming $1,700 for a building permit, which Ming paid. Ming also p...