Questions from Financial Accounting

Q: Norgaard Corporation purchased management consulting services from its 75 percent-owned

Norgaard Corporation purchased management consulting services from its 75 percent-owned subsidiary, Bline Inc. During 20X3, Norgaard paid Bline $123,200 for its services. For the year 20X4, Bline bill...

Q: Grand Delivery Service acquired at book value 80 percent of the voting

Grand Delivery Service acquired at book value 80 percent of the voting shares of Acme Real Estate Company. On that date, the fair value of the noncontrolling interest was equal to 20 percent of Acme’s...

Q: Newtime Products purchased 65 percent of TV Sales Company’s stock at underlying

Newtime Products purchased 65 percent of TV Sales Company’s stock at underlying book value on January 1, 20X3. At that date, the fair value of the noncontrolling interest was equal to 35 percent of th...

Q: Turner Company purchased 70 percent of Split Company’s stock approximately 20 years

Turner Company purchased 70 percent of Split Company’s stock approximately 20 years ago. On December 31, 20X8, Turner purchased a building from Split for $300,000. Split had purchased the building on...

Q: Parent Company holds 90 percent of Sunway Company’s voting common shares.

Parent Company holds 90 percent of Sunway Company’s voting common shares. On December 31, 20X8, Parent recorded a loss of $16,000 on the sale of equipment to Sunway. At the time of the sale, the equip...

Q: Select the correct answer for each of the following questions.

Select the correct answer for each of the following questions. Upper Company holds 60 percent of Lower Company’s voting shares. During the preparation of consolidated financial sta...

Q: Huckster Corporation purchased land on January 1, 20X1, for $

Huckster Corporation purchased land on January 1, 20X1, for $20,000. On June 10, 20X4, it sold the land to its subsidiary, Lowly Corporation, for $30,000. Huckster owns 60 percent of Lowly’s voting sh...

Q: Power Corporation owns 75 percent of Swift Company’s stock. Swift provides

Power Corporation owns 75 percent of Swift Company’s stock. Swift provides health care services to its employees and those of Power. During 20X2, Power recorded $45,000 as health care expense for medi...

Q: Pam Corporation holds 70 percent ownership of Northern Enterprises. On December

Pam Corporation holds 70 percent ownership of Northern Enterprises. On December 31, 20X6, Northern paid Pam $40,000 for a truck that Pam had purchased for $45,000 on January 1, 20X2. The truck was con...

Q: Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock.

Bowen Corporation owns 70 percent of Roan Corporation’s voting common stock. On March 12, 20X2, Roan sold land it had purchased for $140,000 to Bowen for $185,000. Bowen plans to build a new warehouse...