Questions from Financial Accounting

Q: Canton Corporation is a majority-owned subsidiary of West Corporation.

Canton Corporation is a majority-owned subsidiary of West Corporation. West acquired 75 percent ownership on January 1, 20X3, for $133,500. At that date, Canton reported common stock outstanding of $6...

Q: Major Corporation acquired 90 percent of Lancaster Company’s voting common stock on

Major Corporation acquired 90 percent of Lancaster Company’s voting common stock on January 1, 20X1, for $486,000. At the time of the combination, Lancaster reported common stock outstanding of $120,0...

Q: Pioneer Corporation purchased 80 percent of Lowe Corporation’s stock on January 1

Pioneer Corporation purchased 80 percent of Lowe Corporation’s stock on January 1, 20X2. At that date, Lowe reported retained earnings of $80,000 and had $120,000 of stock outstanding. The fair value...

Q: Knox Corporation purchased 60 percent of Conway Company ownership on January 1

Knox Corporation purchased 60 percent of Conway Company ownership on January 1, 20X7, for $277,500. Conway reported the following net income and dividend payments: On January 1, 20X7, Conway had $25...

Q: Proud Corporation acquired 80 percent of Stergis Company’s voting stock on January

Proud Corporation acquired 80 percent of Stergis Company’s voting stock on January 1, 20X3, at underlying book value. The fair value of the noncontrolling interest was equal to 20 pe...

Q: This exercise is a continuation of E5-13. Proud Corporation

This exercise is a continuation of E5-13. Proud Corporation acquired 80 percent of Stergis C ompany’s voting stock on January 1, 20X3, at underlying book value. The fair value of the...

Q: Broadmore Corporation acquired 75 percent of Stem Corporation’s common stock on January

Broadmore Corporation acquired 75 percent of Stem Corporation’s common stock on January 1, 20X8, for $435,000. At that date, Stem reported common stock outstanding of $300,000 and re...

Q: Palmer Corporation acquired 70 percent of Krown Corporation’s ownership on January 1

Palmer Corporation acquired 70 percent of Krown Corporation’s ownership on January 1, 20X8, for $140,000. At that date, Krown reported capital stock outstanding of $120,000 and retained earnings of $8...

Q: General Corporation acquired 80 percent of Strap Company’s voting common stock on

General Corporation acquired 80 percent of Strap Company’s voting common stock on January 1, 20X4, for $138,000. At that date, the fair value of the noncontrolling interest was $34,5...

Q: On December 31, 20X4, Worth Corporation acquired 90 percent of

On December 31, 20X4, Worth Corporation acquired 90 percent of Brinker Inc.’s common stock for $864,000. At that date, the fair value of the noncontrolling interest was $96,000. Of the $240,000 differ...