Questions from Financial Accounting

Q: Clean Air Products owns 80 percent of the stock of Superior

Clean Air Products owns 80 percent of the stock of Superior Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest...

Q: Ajax Corporation purchased at book value 70 percent of Beta Corporation’s ownership

Ajax Corporation purchased at book value 70 percent of Beta Corporation’s ownership and 90 percent of Cole Corporation’s ownership in 20X5. At the dates the ownersh...

Q: On January 1, 20X1, Priority Corporation purchased 90 percent of

On January 1, 20X1, Priority Corporation purchased 90 percent of Tall Corporation’s common stock at underlying book value. At that date, the fair value of the noncontrolling interest...

Q: Proud Company and Slinky Company both produce and purchase equipment for resale

Proud Company and Slinky Company both produce and purchase equipment for resale each period and frequently sell to each other. Since Proud Company holds 60 percent ownership of Slinky Company, Proud&a...

Q: Bell Company purchased 60 percent ownership of Troll Corporation on January 1

Bell Company purchased 60 percent ownership of Troll Corporation on January 1, 20X1, for $82,800. On that date, the noncontrolling interest had a fair value of $55,200 and Troll reported common stock...

Q: Crow Corporation purchased 70 percent of West Company’s voting common stock on

Crow Corporation purchased 70 percent of West Company’s voting common stock on January 1, 20X5, for $291,200. On that date, the noncontrolling interest had a fair value of $124,800 a...

Q: Bunker Corporation owns 80 percent of Harrison Company’s stock. At

Bunker Corporation owns 80 percent of Harrison Company’s stock. At the end of 20X8, Bunker and Harrison reported the following partial operating results and inventory balances: Bu...

Q: Pine Corporation acquired 70 percent of Bock Company’s voting common shares on

Pine Corporation acquired 70 percent of Bock Company’s voting common shares on January 1, 20X2, for $108,500. At that date, the noncontrolling interest had a fair value of $46,500 an...

Q: ower Corporation acquired 60 percent of Concerto Company’s stock on January 1

ower Corporation acquired 60 percent of Concerto Company’s stock on January 1, 20X3, for $24,000 in excess of book value. On that date, the book values and fair values of Concerto&ac...

Q: Block Corporation was created on January 1, 20X0, to develop

Block Corporation was created on January 1, 20X0, to develop computer software. On January 1, 20X5, Foster Company purchased 90 percent of Block’s common stock at underlying book val...